Earnings Report: Triveni Engineering & Industries Limited Missed Revenue Estimates By 13%

It's been a mediocre week for Triveni Engineering & Industries Limited (NSE:TRIVENI) shareholders, with the stock dropping 11% to ₹222 in the week since its latest quarterly results. Revenues were ₹16b, 13% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹12.19 being in line with what the analysts forecast. 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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Following last week's earnings report, Triveni Engineering & Industries' four analysts are forecasting 2027 revenues to be ₹63.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 27% to ₹16.15. In the lead-up to this report, the analysts had been modelling revenues of ₹68.6b and earnings per share (EPS) of ₹18.40 in 2027. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

See our latest analysis for Triveni Engineering & Industries

The consensus price target fell 33% to ₹318, with the weaker earnings outlook clearly leading valuation estimates. 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. Currently, the most bullish analyst values Triveni Engineering & Industries at ₹363 per share, while the most bearish prices it at ₹302. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Triveni Engineering & Industries' past performance and to peers in the same industry. We would highlight that Triveni Engineering & Industries' revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2027 being well below the historical 7.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that Triveni Engineering & Industries is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Triveni Engineering & Industries. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Triveni Engineering & Industries analysts - 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 3 warning signs for Triveni Engineering & Industries you should be aware of, and 2 of them don't sit too well with us.

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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.