Earnings Miss: Vedant Fashions Limited Missed EPS By 35% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Vedant Fashions Limited (NSE:MANYAVAR), given that the company fell short of expectations when it released its first-quarter results last week. Unfortunately, Vedant Fashions delivered a serious earnings miss. Revenues of ₹2.4b were 17% below expectations, and statutory earnings per share of ₹2.57 missed estimates by 35%. 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.

View our latest analysis for Vedant Fashions

Following the latest results, Vedant Fashions' nine analysts are now forecasting revenues of ₹14.8b in 2025. This would be a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 15% to ₹18.24. Before this earnings report, the analysts had been forecasting revenues of ₹15.3b and earnings per share (EPS) of ₹18.90 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of ₹1,197, suggesting the downgrades are not expected to have a long-term impact on Vedant Fashions' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Vedant Fashions, with the most bullish analyst valuing it at ₹1,363 and the most bearish at ₹980 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 17% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Vedant Fashions is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vedant Fashions. They also downgraded Vedant Fashions' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at ₹1,197, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Vedant Fashions 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 Vedant Fashions .

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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.

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