Granules India Limited (NSE:GRANULES) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Granules India Limited (NSE:GRANULES) had a good week, as its shares rose 2.4% to close at ₹531 following the release of its annual results. Granules India reported ₹45b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹20.68 beat expectations, being 4.8% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Granules India's seven analysts is for revenues of ₹51.4b in 2026. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 15% to ₹23.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.1b and earnings per share (EPS) of ₹25.11 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Granules India

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹630, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Granules India analyst has a price target of ₹699 per share, while the most pessimistic values it at ₹564. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Granules India is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Granules India's past performance and to peers in the same industry. It's clear from the latest estimates that Granules India's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Granules India to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Granules India. Long-term earnings power is much more important than next year's profits. We have forecasts for Granules India going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Granules India's balance sheet, and whether we think Granules India is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.