Bearish: Analysts Just Cut Their Symphony Limited (NSE:SYMPHONY) Revenue and EPS estimates

Today is shaping up negative for Symphony Limited (NSE:SYMPHONY) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

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Following the latest downgrade, the seven analysts covering Symphony provided consensus estimates of ₹9.7b revenue in 2026, which would reflect a stressful 26% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to dip 6.9% to ₹18.10 in the same period. Before this latest update, the analysts had been forecasting revenues of ₹12b and earnings per share (EPS) of ₹28.67 in 2026. Indeed, we can see that the analysts are a lot more bearish about Symphony's prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Symphony

Analysts made no major changes to their price target of ₹1,211, suggesting the downgrades are not expected to have a long-term impact on Symphony's valuation.

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 would highlight that sales are expected to reverse, with a forecast 46% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. It's pretty clear that Symphony's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Symphony's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Symphony.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Symphony's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 2 other concerns we've identified.

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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.