Sterling and Wilson Renewable Energy Limited Just Missed EPS By 21%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Sterling and Wilson Renewable Energy Limited (NSE:SWSOLAR) released its annual result to the market. The early response was not positive, with shares down 4.5% to ₹295 in the past week. Revenue of ₹63b surpassed estimates by 4.7%, although statutory earnings per share missed badly, coming in 21% below expectations at ₹3.49 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.

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Taking into account the latest results, the most recent consensus for Sterling and Wilson Renewable Energy from dual analysts is for revenues of ₹76.3b in 2026. If met, it would imply a sizeable 21% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 257% to ₹12.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹81.8b and earnings per share (EPS) of ₹17.87 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

See our latest analysis for Sterling and Wilson Renewable Energy

It'll come as no surprise then, to learn that the analysts have cut their price target 8.3% to ₹570.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Sterling and Wilson Renewable Energy's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 21% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 11% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually. So it looks like Sterling and Wilson Renewable Energy 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 Sterling and Wilson Renewable Energy. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Sterling and Wilson Renewable Energy 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.