SIS Limited Just Missed EPS By 14%: Here's What Analysts Think Will Happen Next

SIS Limited (NSE:SIS) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share of ₹5.68 unfortunately missed expectations by 14%, although it was encouraging to see revenues of ₹38b exceed expectations by 4.1%. 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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After the latest results, the four analysts covering SIS are now predicting revenues of ₹149.2b in 2026. If met, this would reflect a credible 5.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 511% to ₹22.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹144.0b and earnings per share (EPS) of ₹23.90 in 2026. So it's pretty clear consensus is mixed on SIS after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

View our latest analysis for SIS

The consensus price target was unchanged at ₹431, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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 SIS at ₹450 per share, while the most bearish prices it at ₹410. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting SIS is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting SIS' growth to accelerate, with the forecast 12% annualised growth to the end of 2026 ranking favourably alongside historical growth of 9.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SIS is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SIS. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹431, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for SIS going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for SIS you should know about.

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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.