Earnings Miss: Sula Vineyards Limited Missed EPS By 35% And Analysts Are Revising Their Forecasts

Sula Vineyards Limited (NSE:SULA) just released its latest half-year report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹2.4b, statutory earnings missed forecasts by an incredible 35%, coming in at just ₹0.71 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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, Sula Vineyards' six analysts are now forecasting revenues of ₹5.96b in 2026. This would be a modest 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 22% to ₹7.10. Before this earnings report, the analysts had been forecasting revenues of ₹6.20b and earnings per share (EPS) of ₹7.68 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

View our latest analysis for Sula Vineyards

Despite the cuts to forecast earnings, there was no real change to the ₹265 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. The most optimistic Sula Vineyards analyst has a price target of ₹285 per share, while the most pessimistic values it at ₹249. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sula Vineyards is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that Sula Vineyards' rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.1% p.a. over the past three years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Sula Vineyards is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sula Vineyards. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹265, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sula Vineyards 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 3 warning signs with Sula Vineyards , and understanding these 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.