Symphony Limited Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

The third-quarter results for Symphony Limited (NSE:SYMPHONY) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, given that revenues fell 20% short of analyst estimates at ₹2.4b, and the company reported a statutory loss of ₹1.37 per share instead of the profit that the analysts had been forecasting. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Symphony

Taking into account the latest results, the consensus forecast from Symphony's seven analysts is for revenues of ₹17.1b in 2026. This reflects a substantial 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 40% to ₹37.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹17.6b and earnings per share (EPS) of ₹39.17 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.

The analysts made no major changes to their price target of ₹1,481, suggesting the downgrades are not expected to have a long-term impact on Symphony's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Symphony analyst has a price target of ₹1,843 per share, while the most pessimistic values it at ₹1,102. 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.

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. The analysts are definitely expecting Symphony's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Symphony is expected to grow at about the same rate as 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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹1,481, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Symphony. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Symphony going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Symphony has 1 warning sign we think you should be aware of.

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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.