Jindal Stainless Limited Just Missed EPS By 7.8%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Jindal Stainless Limited (NSE:JSL), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 4.1% short of analyst estimates at ₹393b, and statutory earnings of ₹30.41 per share missed forecasts by 7.8%. 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 Stainless' ten analysts is for revenues of ₹475.2b in 2026. This reflects a huge 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 30% to ₹39.41. Before this earnings report, the analysts had been forecasting revenues of ₹484.5b and earnings per share (EPS) of ₹44.27 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Check out our latest analysis for Jindal Stainless

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹732, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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 Jindal Stainless analyst has a price target of ₹815 per share, while the most pessimistic values it at ₹675. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Jindal Stainless' revenue growth is expected to slow, with the forecast 21% annualised growth rate until the end of 2026 being well below the historical 27% 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) 10% per year. So it's pretty clear that, while Jindal Stainless' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹732, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Jindal Stainless going out to 2028, and you can see them free on our platform here..

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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.