Voltas Limited Just Missed EPS By 34%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Voltas Limited (NSE:VOLTAS) shareholders, with the stock dropping 14% to ₹1,276 in the week since its latest yearly results. Results overall were not great, with earnings of ₹7.62 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹125b and were slightly better than forecasts. 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.

See our latest analysis for Voltas

Taking into account the latest results, the current consensus from Voltas' 30 analysts is for revenues of ₹145.0b in 2025. This would reflect a meaningful 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 219% to ₹24.33. Before this earnings report, the analysts had been forecasting revenues of ₹136.7b and earnings per share (EPS) of ₹23.52 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for Voltas 6.2% to ₹1,243on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Voltas analyst has a price target of ₹1,800 per share, while the most pessimistic values it at ₹842. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Voltas' growth to accelerate, with the forecast 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Voltas is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Voltas following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Voltas going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Voltas .

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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.