Vardhman Textiles Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Vardhman Textiles Limited (NSE:VTL) recently reported its first-quarter numbers. It looks like a pretty bad result, all things considered. Although revenues of ₹24b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 22% to hit ₹7.28 per share. 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.

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Following the latest results, Vardhman Textiles' five analysts are now forecasting revenues of ₹104.8b in 2026. This would be a modest 6.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.2% to ₹31.87. In the lead-up to this report, the analysts had been modelling revenues of ₹106.5b and earnings per share (EPS) of ₹33.90 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for Vardhman Textiles

The consensus price target held steady at ₹510, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Vardhman Textiles, with the most bullish analyst valuing it at ₹557 and the most bearish at ₹397 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 can infer from the latest estimates that forecasts expect a continuation of Vardhman Textiles'historical trends, as the 8.4% annualised revenue growth to the end of 2026 is roughly in line with the 8.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although Vardhman Textiles is expected to maintain its revenue growth rate, it's forecast to grow slower than 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Vardhman Textiles 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 1 warning sign with Vardhman Textiles , and understanding this 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.