Arvind Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Arvind Limited (NSE:ARVIND) just released its latest quarterly report and things are not looking great. Results showed a clear earnings miss, with ₹20b revenue coming in 4.1% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹2.03 missed the mark badly, arriving some 50% below what was expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the current consensus from Arvind's five analysts is for revenues of ₹91.3b in 2026. This would reflect a modest 7.4% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to ₹15.68. Before this earnings report, the analysts had been forecasting revenues of ₹94.5b and earnings per share (EPS) of ₹17.60 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

View our latest analysis for Arvind

Despite the cuts to forecast earnings, there was no real change to the ₹431 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Arvind analyst has a price target of ₹464 per share, while the most pessimistic values it at ₹395. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Arvind's growth to accelerate, with the forecast 10.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Arvind is expected 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. 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 ₹431, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Arvind analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Arvind you should be aware 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.