Jyothy Labs Limited Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders of Jyothy Labs Limited (NSE:JYOTHYLAB) will be pleased this week, given that the stock price is up 12% to ₹417 following its latest third-quarter results. Revenues of ₹7.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹2.38, missing estimates by 8.5%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Jyothy Labs after the latest results.

View our latest analysis for Jyothy Labs

After the latest results, the twelve analysts covering Jyothy Labs are now predicting revenues of ₹31.6b in 2026. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 16% to ₹11.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹32.3b and earnings per share (EPS) of ₹12.13 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of ₹498, suggesting the downgrades are not expected to have a long-term impact on Jyothy Labs' 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. Currently, the most bullish analyst values Jyothy Labs at ₹613 per share, while the most bearish prices it at ₹400. 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 Jyothy Labs shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Jyothy Labs' revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% per year. Even after the forecast slowdown in growth, it seems obvious that Jyothy Labs is also expected to grow faster than 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹498, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Jyothy Labs. Long-term earnings power is much more important than next year's profits. We have forecasts for Jyothy Labs going out to 2027, and you can see them free on our platform here.

Even so, be aware that Jyothy Labs is showing 1 warning sign in our investment analysis , 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.