Sapphire Foods India Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Sapphire Foods India Limited (NSE:SAPPHIRE) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a pretty bad result, all things considered. Although revenues of ₹26b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 23% to hit ₹8.21 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sapphire Foods India

Taking into account the latest results, the consensus forecast from Sapphire Foods India's 18 analysts is for revenues of ₹30.5b in 2025. This reflects a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 81% to ₹15.00. In the lead-up to this report, the analysts had been modelling revenues of ₹31.2b and earnings per share (EPS) of ₹18.65 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of ₹1,665, suggesting the downgrades are not expected to have a long-term impact on Sapphire Foods India's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sapphire Foods India, with the most bullish analyst valuing it at ₹1,925 and the most bearish at ₹1,353 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sapphire Foods India's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. So although Sapphire Foods India 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. 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 in mind, we wouldn't be too quick to come to a conclusion on Sapphire Foods India. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sapphire Foods India going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Sapphire Foods India 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.