Jyothy Labs Limited (NSE:JYOTHYLAB) Just Released Its Full-Year Earnings: Here's What Analysts Think

Shareholders might have noticed that Jyothy Labs Limited (NSE:JYOTHYLAB) filed its yearly result this time last week. The early response was not positive, with shares down 8.5% to ₹341 in the past week. Revenues of ₹29b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹10.09, missing estimates by 2.9%. 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.

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Following the latest results, Jyothy Labs' nine analysts are now forecasting revenues of ₹30.3b in 2026. This would be an okay 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 7.6% to ₹10.85. Before this earnings report, the analysts had been forecasting revenues of ₹31.3b and earnings per share (EPS) of ₹11.54 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Check out our latest analysis for Jyothy Labs

The analysts made no major changes to their price target of ₹439, suggesting the downgrades are not expected to have a long-term impact on Jyothy Labs' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Jyothy Labs analyst has a price target of ₹530 per share, while the most pessimistic values it at ₹350. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Jyothy Labs' revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2026 being well below the historical 11% 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 5.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jyothy Labs.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Jyothy Labs. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹439, 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 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Jyothy Labs 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.