Earnings Miss: Manappuram Finance Limited Missed EPS By 29% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Manappuram Finance Limited (NSE:MANAPPURAM), given that the company fell short of expectations when it released its yearly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹65b, statutory earnings missed forecasts by an incredible 29%, coming in at just ₹14.22 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the ten analysts covering Manappuram Finance are now predicting revenues of ₹68.4b in 2026. If met, this would reflect a satisfactory 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 63% to ₹23.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹72.3b and earnings per share (EPS) of ₹26.04 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for Manappuram Finance

Despite the cuts to forecast earnings, there was no real change to the ₹235 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Manappuram Finance at ₹261 per share, while the most bearish prices it at ₹185. 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.

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 Manappuram Finance's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 21% annually. Factoring in the forecast slowdown in growth, it seems obvious that Manappuram Finance is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Manappuram Finance. On the negative side, they also downgraded their revenue estimates, and 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. We have forecasts for Manappuram Finance going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Manappuram Finance (1 is a bit unpleasant!) that we have uncovered.

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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.