Vardhman Textiles Limited (NSE:VTL) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Vardhman Textiles Limited (NSE:VTL) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to ₹451 in the week after its latest annual results. It was a workmanlike result, with revenues of ₹101b coming in 2.8% ahead of expectations, and statutory earnings per share of ₹31.05, in line with analyst appraisals. 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.

We've discovered 1 warning sign about Vardhman Textiles. View them for free.

Following the latest results, Vardhman Textiles' five analysts are now forecasting revenues of ₹106.3b in 2026. This would be a modest 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 12% to ₹34.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹106.6b and earnings per share (EPS) of ₹34.15 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Vardhman Textiles

The analysts reconfirmed their price target of ₹522, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Vardhman Textiles at ₹588 per share, while the most bearish prices it at ₹393. 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 Vardhman Textiles shareholders.

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. We would highlight that Vardhman Textiles' revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2026 being well below the historical 9.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. Factoring in the forecast slowdown in growth, it seems obvious that Vardhman Textiles is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Vardhman Textiles analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Vardhman Textiles that you need to take into consideration.

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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.