Earnings Miss: Kalpataru Projects International Limited Missed EPS By 10% And Analysts Are Revising Their Forecasts

It's been a good week for Kalpataru Projects International Limited (NSE:KPIL) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.5% to ₹1,371. It was not a great result overall. Although revenues beat expectations, hitting ₹70b, statutory earnings missed analyst forecasts by 10%, coming in at just ₹16.92 per share. 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.

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Following the recent earnings report, the consensus from twelve analysts covering Kalpataru Projects International is for revenues of ₹269.6b in 2027. This implies a small 3.5% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 6.2% to ₹73.72. In the lead-up to this report, the analysts had been modelling revenues of ₹310.4b and earnings per share (EPS) of ₹72.61 in 2027. So there's been a clear change in sentiment after these results, with the analysts making a real cut to revenues and reconfirming their earnings per share estimates.

See our latest analysis for Kalpataru Projects International

The average price target was steady at ₹1,654even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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. The most optimistic Kalpataru Projects International analyst has a price target of ₹1,865 per share, while the most pessimistic values it at ₹1,400. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kalpataru Projects International is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that revenue is expected to reverse, with a forecast 6.8% annualised decline to the end of 2027. That is a notable change from historical growth of 15% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. It's pretty clear that Kalpataru Projects International's revenues are expected to perform substantially worse than the wider industry.

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. 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. Yet - earnings are more important to the intrinsic value of the business. 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 Kalpataru Projects International. 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 Kalpataru Projects International going out to 2029, and you can see them free on our platform here..

Even so, be aware that Kalpataru Projects International is showing 1 warning sign in our investment analysis , you should know about...

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