Earnings Miss: Motherson Sumi Wiring India Limited Missed EPS By 20% And Analysts Are Revising Their Forecasts

Motherson Sumi Wiring India Limited (NSE:MSUMI) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹23b, statutory earnings missed forecasts by an incredible 20%, coming in at just ₹0.32 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Motherson Sumi Wiring India

Following the latest results, Motherson Sumi Wiring India's ten analysts are now forecasting revenues of ₹106.4b in 2026. This would be a notable 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 26% to ₹1.80. Before this earnings report, the analysts had been forecasting revenues of ₹106.3b and earnings per share (EPS) of ₹1.95 in 2026. 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.

The consensus price target held steady at ₹68.73, 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. Currently, the most bullish analyst values Motherson Sumi Wiring India at ₹83.00 per share, while the most bearish prices it at ₹59.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 16% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So it's pretty clear that Motherson Sumi Wiring India 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 Motherson Sumi Wiring India. 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 ₹68.73, 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 forecasts for Motherson Sumi Wiring India going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Motherson Sumi Wiring India's balance sheet, and whether we think Motherson Sumi Wiring India is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.