Galaxy Surfactants Limited Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Galaxy Surfactants Limited (NSE:GALAXYSURF) released its second-quarter result to the market. The early response was not positive, with shares down 4.0% to ₹2,146 in the past week. It was not a great result overall. Although revenues beat expectations, hitting ₹13b, statutory earnings missed analyst forecasts by 18%, coming in at just ₹18.75 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Galaxy Surfactants' twelve analysts is for revenues of ₹51.5b in 2026. This would reflect a credible 7.3% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹81.15, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹48.2b and earnings per share (EPS) of ₹94.02 in 2026. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

Check out our latest analysis for Galaxy Surfactants

The consensus price target was unchanged at ₹2,592, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. There are some variant perceptions on Galaxy Surfactants, with the most bullish analyst valuing it at ₹2,860 and the most bearish at ₹2,097 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Galaxy Surfactants' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.5% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Galaxy Surfactants 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 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. There was also an upgrade to 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Galaxy Surfactants 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 1 warning sign with Galaxy Surfactants , and understanding this 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.