Pine Labs Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Pine Labs Limited (NSE:PINELABS) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of ₹8.1b, some 2.4% above estimates, and statutory earnings per share (EPS) coming in at ₹0.33, 80% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Pine Labs from eleven analysts is for revenues of ₹33.1b in 2027. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 54% to ₹2.14. In the lead-up to this report, the analysts had been modelling revenues of ₹32.6b and earnings per share (EPS) of ₹2.25 in 2027. 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 Pine Labs

The consensus price target held steady at ₹223, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Pine Labs analyst has a price target of ₹250 per share, while the most pessimistic values it at ₹190. This is a very narrow spread of estimates, implying either that Pine Labs is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Pine Labs'historical trends, as the 23% annualised revenue growth to the end of 2027 is roughly in line with the 21% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So it's pretty clear that Pine Labs is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pine Labs. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹223, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Pine Labs. 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 Pine Labs going out to 2029, 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 Pine Labs you should be aware of.

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