Jindal Steel & Power Limited Just Missed EPS By 34%: Here's What Analysts Think Will Happen Next

Jindal Steel & Power Limited (NSE:JINDALSTEL) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a pretty bad result, all things considered. Although revenues of ₹498b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 34% to hit ₹27.83 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Jindal Steel & Power's 26 analysts is for revenues of ₹575.5b in 2026. This reflects a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 108% to ₹57.44. Before this earnings report, the analysts had been forecasting revenues of ₹599.8b and earnings per share (EPS) of ₹66.16 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for Jindal Steel & Power

The analysts made no major changes to their price target of ₹989, suggesting the downgrades are not expected to have a long-term impact on Jindal Steel & Power's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Jindal Steel & Power analyst has a price target of ₹1,220 per share, while the most pessimistic values it at ₹480. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Jindal Steel & Power's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Jindal Steel & Power is expected to grow much faster than its 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. They also downgraded Jindal Steel & Power's revenue estimates, but industry data suggests that it is expected to grow faster than 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Jindal Steel & Power. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Jindal Steel & Power 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 2 warning signs with Jindal Steel & Power , and understanding them 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.