Galaxy Surfactants Limited Just Missed EPS By 25%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Galaxy Surfactants Limited (NSE:GALAXYSURF) released its quarterly result to the market. The early response was not positive, with shares down 4.1% to ₹2,339 in the past week. It looks like a pretty bad result, all things considered. Although revenues of ₹10b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 25% to hit ₹18.22 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Galaxy Surfactants

Following the latest results, Galaxy Surfactants' ten analysts are now forecasting revenues of ₹45.8b in 2026. This would be a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 21% to ₹104. In the lead-up to this report, the analysts had been modelling revenues of ₹46.0b and earnings per share (EPS) of ₹115 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹3,094, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Galaxy Surfactants at ₹4,067 per share, while the most bearish prices it at ₹2,420. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Galaxy Surfactants' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Galaxy Surfactants'historical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Galaxy Surfactants is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Galaxy Surfactants. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹3,094, 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 Galaxy Surfactants. Long-term earnings power is much more important than next year's profits. We have forecasts for Galaxy Surfactants going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Galaxy Surfactants that you need to take into consideration.

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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.