Petronet LNG Limited Just Beat Revenue By 26%: Here's What Analysts Think Will Happen Next

It's been a good week for Petronet LNG Limited (NSE:PETRONET) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.6% to ₹317. Revenue of ₹72b came in a notable 26% ahead of expectations, while statutory earnings of ₹26.08 were in line with what the analysts had been forecasting. 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.

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Taking into account the latest results, the consensus forecast from Petronet LNG's 27 analysts is for revenues of ₹412.1b in 2027. This reflects a huge 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to fall 11% to ₹27.61 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹408.3b and earnings per share (EPS) of ₹26.65 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Petronet LNG

The consensus price target was unchanged at ₹325, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Petronet LNG, with the most bullish analyst valuing it at ₹421 and the most bearish at ₹265 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Petronet LNG's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 53% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 1.8% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.3% annually. Not only are Petronet LNG's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Petronet LNG following these results. 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 ₹325, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Petronet LNG 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 Petronet LNG you should be aware of, and 1 of them is a bit concerning.

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