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

It's shaping up to be a tough period for SIS Limited (NSE:SIS), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with ₹123b revenue coming in 2.1% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹12.97 missed the mark badly, arriving some 37% below what was expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for SIS

After the latest results, the four analysts covering SIS are now predicting revenues of ₹137.2b in 2025. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 63% to ₹21.50. In the lead-up to this report, the analysts had been modelling revenues of ₹139.6b and earnings per share (EPS) of ₹27.00 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.4% to ₹568, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. Currently, the most bullish analyst values SIS at ₹600 per share, while the most bearish prices it at ₹500. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SIS' past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. It's clear that while SIS' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on SIS. Long-term earnings power is much more important than next year's profits. We have forecasts for SIS 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 SIS .

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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.