Indus Towers Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Investors in Indus Towers Limited (NSE:INDUSTOWER) had a good week, as its shares rose 5.8% to close at ₹381 following the release of its second-quarter results. Indus Towers reported ₹82b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹6.97 beat expectations, being 5.2% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Indus Towers' 23 analysts is for revenues of ₹329.4b in 2026. This would reflect an okay 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plunge 24% to ₹27.08 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹329.1b and earnings per share (EPS) of ₹26.90 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Indus Towers
There were no changes to revenue or earnings estimates or the price target of ₹416, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Indus Towers analyst has a price target of ₹540 per share, while the most pessimistic values it at ₹300. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Indus Towers' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.8% per year. So it's pretty clear that, while Indus Towers' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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 Indus Towers. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Indus Towers going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for Indus Towers that we have uncovered.
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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.