Steel Authority of India Limited Just Recorded A 12% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Steel Authority of India Limited (NSE:SAIL) had a good week, as its shares rose 2.6% to close at ₹129 following the release of its full-year results. Revenues were ₹1.0t, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹5.74 were also better than expected, beating analyst predictions by 12%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the latest results, Steel Authority of India's 16 analysts are now forecasting revenues of ₹1.06t in 2026. This would be a modest 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 59% to ₹9.16. In the lead-up to this report, the analysts had been modelling revenues of ₹1.08t and earnings per share (EPS) of ₹7.70 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

Check out our latest analysis for Steel Authority of India

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.7% to ₹117. 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. There are some variant perceptions on Steel Authority of India, with the most bullish analyst valuing it at ₹155 and the most bearish at ₹80.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that Steel Authority of India's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. Factoring in the forecast slowdown in growth, it seems obvious that Steel Authority of India is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Steel Authority of India's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Steel Authority of India going out to 2028, and you can see them free on our platform here.

Even so, be aware that Steel Authority of India is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.