Revenue Miss: Symphony Limited Fell 20% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Symphony Limited (NSE:SYMPHONY) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to ₹901 in the week after its latest quarterly results. Revenues were ₹1.6b, 20% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹30.89 being in line with what the analysts anticipated. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the consensus from Symphony's seven analysts is for revenues of ₹9.03b in 2026, which would reflect a painful 31% decline in revenue compared to the last year of performance. Statutory per share are forecast to be ₹19.70, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12.2b 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 following the latest results, administering a large cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Symphony

The analysts made no major changes to their price target of ₹1,231, suggesting the downgrades are not expected to have a long-term impact on Symphony's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Symphony, with the most bullish analyst valuing it at ₹1,479 and the most bearish at ₹819 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that revenue is expected to reverse, with a forecast 53% annualised decline to the end of 2026. That is a notable change from historical growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 14% per year. It's pretty clear that Symphony's revenues are expected to perform substantially worse 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 Symphony. 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 ₹1,231, 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. We have estimates - from multiple Symphony analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Symphony (at least 1 which is a bit concerning) , and understanding these should be part of your investment process.

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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.