Vardhman Textiles Limited Just Missed EPS By 8.7%: Here's What Analysts Think Will Happen Next

Investors in Vardhman Textiles Limited (NSE:VTL) had a good week, as its shares rose 8.4% to close at ₹440 following the release of its quarterly results. It was a pretty mixed result, with revenues beating expectations to hit ₹25b. Statutory earnings fell 8.7% short of analyst forecasts, reaching ₹6.57 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Vardhman Textiles' five analysts currently expect revenues in 2026 to be ₹99.6b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be ₹29.33, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹104.5b and earnings per share (EPS) of ₹30.98 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Check out our latest analysis for Vardhman Textiles

The analysts made no major changes to their price target of ₹488, suggesting the downgrades are not expected to have a long-term impact on Vardhman Textiles' valuation. 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. Currently, the most bullish analyst values Vardhman Textiles at ₹565 per share, while the most bearish prices it at ₹397. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Vardhman Textiles' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vardhman Textiles.

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. 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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Vardhman Textiles going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Vardhman Textiles (of which 1 is concerning!) you should know about.

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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.