Varroc Engineering Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Varroc Engineering Limited (NSE:VARROC) shareholders, because the company has just released its latest yearly results, and the shares gained 4.4% to ₹529. Statutory earnings per share fell badly short of expectations, coming in at ₹4.01, some 73% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹82b. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the five analysts covering Varroc Engineering are now predicting revenues of ₹91.1b in 2026. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 479% to ₹23.20. In the lead-up to this report, the analysts had been modelling revenues of ₹91.8b and earnings per share (EPS) of ₹24.03 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Varroc Engineering

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹546, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Varroc Engineering, with the most bullish analyst valuing it at ₹610 and the most bearish at ₹480 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. One thing stands out from these estimates, which is that Varroc Engineering is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2026. If achieved, this would be a much better result than the 7.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.7% per year. So it looks like Varroc Engineering is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Varroc Engineering. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹546, 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. At Simply Wall St, we have a full range of analyst estimates for Varroc Engineering going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Varroc Engineering has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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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.