Solar Industries India Limited Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

It's been a good week for Solar Industries India Limited (NSE:SOLARINDS) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.4% to ₹14,084. Revenues were in line with forecasts, at ₹21b, although statutory earnings per share came in 11% below what the analysts expected, at ₹38.12 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the current consensus from Solar Industries India's seven analysts is for revenues of ₹99.5b in 2026. This would reflect a notable 19% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 26% to ₹183. In the lead-up to this report, the analysts had been modelling revenues of ₹99.7b and earnings per share (EPS) of ₹191 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for Solar Industries India

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹16,958, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Solar Industries India analyst has a price target of ₹18,215 per share, while the most pessimistic values it at ₹15,642. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Solar Industries India is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Solar Industries India's growth to accelerate, with the forecast 41% annualised growth to the end of 2026 ranking favourably alongside historical growth of 22% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Solar Industries India to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 Solar Industries India going out to 2028, and you can see them free on our platform here.

You can also view our analysis of Solar Industries India's balance sheet, and whether we think Solar Industries India is carrying too much debt, for free on our platform here.

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.