SIS Limited Just Missed Revenue By 9.7%: Here's What Analysts Think Will Happen Next

SIS Limited (NSE:SIS) just released its latest first-quarter report and things are not looking great. SIS missed analyst forecasts, with revenues of ₹31b and statutory earnings per share (EPS) of ₹4.42, falling short by 9.7% and 3.9% respectively. 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.

Check out our latest analysis for SIS

Taking into account the latest results, the most recent consensus for SIS from four analysts is for revenues of ₹133.3b in 2025. If met, it would imply a modest 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 90% to ₹21.75. In the lead-up to this report, the analysts had been modelling revenues of ₹133.9b and earnings per share (EPS) of ₹24.87 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target fell 8.3% to ₹507, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on SIS, with the most bullish analyst valuing it at ₹590 and the most bearish at ₹435 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of SIS'historical trends, as the 10.0% annualised revenue growth to the end of 2025 is roughly in line with the 9.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% annually. So although SIS is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SIS' revenue is expected to perform worse 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. 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.

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