Revenue Miss: Bajaj Electricals Limited Fell 9.9% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models
Bajaj Electricals Limited (NSE:BAJAJELEC) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to ₹584 in the week after its latest first-quarter results. Revenues came in 9.9% below expectations, at ₹11b. Statutory earnings per share were relatively better off, with a per-share profit of ₹11.56 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Bajaj Electricals' nine analysts is for revenues of ₹50.9b in 2026. This would reflect a credible 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 22% to ₹11.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.4b and earnings per share (EPS) of ₹14.38 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.
View our latest analysis for Bajaj Electricals
The analysts made no major changes to their price target of ₹708, suggesting the downgrades are not expected to have a long-term impact on Bajaj Electricals' 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. There are some variant perceptions on Bajaj Electricals, with the most bullish analyst valuing it at ₹835 and the most bearish at ₹484 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Bajaj Electricals' rate of growth is expected to accelerate meaningfully, with the forecast 9.1% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Bajaj Electricals is expected to grow slower 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹708, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bajaj Electricals going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Bajaj Electricals you should be aware of.
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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.