V.I.P. Industries Limited Just Missed Earnings - But Analysts Have Updated Their Models

V.I.P. Industries Limited (NSE:VIPIND) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹6.4b, statutory earnings missed forecasts by an incredible 89%, coming in at just ₹0.28 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for V.I.P. Industries

Taking into account the latest results, the most recent consensus for V.I.P. Industries from eleven analysts is for revenues of ₹24.5b in 2025. If met, it would imply a solid 9.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 14,498% to ₹6.07. Before this earnings report, the analysts had been forecasting revenues of ₹25.5b and earnings per share (EPS) of ₹9.73 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The consensus price target fell 5.3% to ₹513, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on V.I.P. Industries, with the most bullish analyst valuing it at ₹635 and the most bearish at ₹420 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await V.I.P. Industries shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the V.I.P. Industries' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of V.I.P. Industries'historical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So although V.I.P. Industries is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on V.I.P. Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple V.I.P. Industries analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that V.I.P. Industries is showing 4 warning signs in our investment analysis , and 1 of those is concerning...

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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.