Adani Energy Solutions Limited (NSE:ADANIENSOL) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year
A week ago, Adani Energy Solutions Limited (NSE:ADANIENSOL) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 4.8% to hit ₹101b. Statutory earnings per share (EPS) came in at ₹11.01, some 4.4% above whatthe analysts had expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Adani Energy Solutions' eight analysts is for revenues of ₹385.4b in 2027. This would reflect a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 13% to ₹34.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹425.8b and earnings per share (EPS) of ₹25.50 in 2027. Although the analysts have lowered their revenue forecasts, they've also made a great increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
Check out our latest analysis for Adani Energy Solutions
There's been no real change to the average price target of ₹1,676, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. There are some variant perceptions on Adani Energy Solutions, with the most bullish analyst valuing it at ₹2,060 and the most bearish at ₹1,434 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Adani Energy Solutions'historical trends, as the 29% annualised revenue growth to the end of 2027 is roughly in line with the 24% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Adani Energy Solutions is forecast to grow substantially faster than its 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 Adani Energy Solutions following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at ₹1,676, with the latest estimates not enough to have an impact on their price targets.
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 Adani Energy Solutions analysts - going out to 2029, 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 Adani Energy Solutions that we have uncovered.
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