V.I.P. Industries Limited Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

It's been a sad week for V.I.P. Industries Limited (NSE:VIPIND), who've watched their investment drop 11% to ₹461 in the week since the company reported its quarterly result. It was a pretty negative result overall, with revenues of ₹5.4b missing analyst predictions by 8.1%. Worse, the business reported a statutory loss of ₹2.32 per share, a substantial decline on analyst expectations of a profit. 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 V.I.P. Industries

Taking into account the latest results, the consensus forecast from V.I.P. Industries' eleven analysts is for revenues of ₹23.8b in 2025. This reflects a satisfactory 6.2% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 66% to ₹1.10 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹24.6b and earnings per share (EPS) of ₹5.52 in 2025. There looks to have been a significant drop in sentiment regarding V.I.P. Industries' prospects after these latest results, with a small dip in revenues and the analysts now forecasting a loss instead of a profit.

The consensus price target fell 7.3% to ₹475, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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. The most optimistic V.I.P. Industries analyst has a price target of ₹529 per share, while the most pessimistic values it at ₹430. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. It's clear that while V.I.P. Industries' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest low-light for us was that the forecasts for V.I.P. Industries dropped from profits to a loss next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of V.I.P. Industries' future valuation.

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 V.I.P. Industries going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for V.I.P. Industries that 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.