Earnings Miss: Samvardhana Motherson International Limited Missed EPS By 11% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Samvardhana Motherson International Limited (NSE:MOTHERSON), given that the company fell short of expectations when it released its third-quarter results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹277b, statutory earnings missed forecasts by 11%, coming in at just ₹1.25 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Samvardhana Motherson International

After the latest results, the 20 analysts covering Samvardhana Motherson International are now predicting revenues of ₹1.23t in 2026. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 16% to ₹6.81. In the lead-up to this report, the analysts had been modelling revenues of ₹1.28t and earnings per share (EPS) of ₹7.42 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to ₹166. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Samvardhana Motherson International at ₹219 per share, while the most bearish prices it at ₹120. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Samvardhana Motherson International's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this to the 129 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Samvardhana Motherson International's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 in mind, we wouldn't be too quick to come to a conclusion on Samvardhana Motherson International. Long-term earnings power is much more important than next year's profits. We have forecasts for Samvardhana Motherson International going out to 2027, 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 Samvardhana Motherson International that we have uncovered.

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