Somany Ceramics Limited Just Missed Earnings - But Analysts Have Updated Their Models

The quarterly results for Somany Ceramics Limited (NSE:SOMANYCERA) were released last week, making it a good time to revisit its performance. Statutory earnings per share fell badly short of expectations, coming in at ₹2.26, some 48% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹6.4b. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Somany Ceramics

After the latest results, the 15 analysts covering Somany Ceramics are now predicting revenues of ₹30.0b in 2026. If met, this would reflect a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 80% to ₹30.45. In the lead-up to this report, the analysts had been modelling revenues of ₹30.7b and earnings per share (EPS) of ₹35.66 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

The consensus price target fell 11% to ₹759, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Somany Ceramics analyst has a price target of ₹972 per share, while the most pessimistic values it at ₹564. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Somany Ceramics'historical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 15% annually. So although Somany Ceramics is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Somany Ceramics. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Somany Ceramics. Long-term earnings power is much more important than next year's profits. We have forecasts for Somany Ceramics 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 Somany Ceramics that we have uncovered.

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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.