Carysil Limited Just Missed Earnings - But Analysts Have Updated Their Models

The analysts might have been a bit too bullish on Carysil Limited (NSE:CARYSIL), given that the company fell short of expectations when it released its third-quarter results last week. Results showed a clear earnings miss, with ₹2.0b revenue coming in 6.9% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹4.40 missed the mark badly, arriving some 39% below what was expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Carysil after the latest results.

View our latest analysis for Carysil

Taking into account the latest results, the consensus forecast from Carysil's four analysts is for revenues of ₹10.00b in 2026. This reflects a substantial 25% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 54% to ₹32.86. Before this earnings report, the analysts had been forecasting revenues of ₹10.1b and earnings per share (EPS) of ₹36.83 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The average price target fell 5.2% to ₹997, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 Carysil, with the most bullish analyst valuing it at ₹1,102 and the most bearish at ₹910 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Carysil is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So it's pretty clear that Carysil is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 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 Carysil going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Carysil that you should be aware of.

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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.