V-Guard Industries Limited Just Missed Earnings - But Analysts Have Updated Their Models

V-Guard Industries Limited (NSE:VGUARD) just released its latest first-quarter report and things are not looking great. V-Guard Industries missed earnings this time around, with ₹15b revenue coming in 4.1% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹1.68 also fell short of expectations by 12%. 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.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the current consensus from V-Guard Industries' 16 analysts is for revenues of ₹61.3b in 2026. This would reflect a meaningful 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 21% to ₹8.02. Before this earnings report, the analysts had been forecasting revenues of ₹63.1b and earnings per share (EPS) of ₹8.94 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.

View our latest analysis for V-Guard Industries

Despite the cuts to forecast earnings, there was no real change to the ₹432 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 V-Guard Industries at ₹480 per share, while the most bearish prices it at ₹357. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that V-Guard Industries' revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 20% annually. Factoring in the forecast slowdown in growth, it seems obvious that V-Guard Industries is also expected to grow slower than other industry participants.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹432, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple V-Guard Industries analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for V-Guard Industries that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.