Earnings Update: Safari Industries (India) Limited (NSE:SAFARI) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Safari Industries (India) Limited (NSE:SAFARI) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to ₹2,290 in the week after its latest third-quarter results. Results were roughly in line with estimates, with revenues of ₹4.4b and statutory earnings per share of ₹6.36. 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.

See our latest analysis for Safari Industries (India)

Taking into account the latest results, the most recent consensus for Safari Industries (India) from nine analysts is for revenues of ₹21.7b in 2026. If met, it would imply a substantial 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 50% to ₹45.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹22.5b and earnings per share (EPS) of ₹48.34 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹2,675 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Safari Industries (India) analyst has a price target of ₹2,998 per share, while the most pessimistic values it at ₹2,307. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Safari Industries (India)'s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% per year. So it's pretty clear that, while Safari Industries (India)'s revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Safari Industries (India). They also downgraded Safari Industries (India)'s revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Safari Industries (India) 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 Safari Industries (India) .

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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.