Solar Industries India Limited Recorded A 10% Miss On Revenue: Analysts Are Revisiting Their Models

As you might know, Solar Industries India Limited (NSE:SOLARINDS) recently reported its quarterly numbers. Revenues were ₹17b, 10% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹92.38 being in line with what the analysts forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Solar Industries India

Taking into account the latest results, the consensus forecast from Solar Industries India's four analysts is for revenues of ₹83.2b in 2025. This reflects a major 29% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 33% to ₹148. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹81.5b and earnings per share (EPS) of ₹144 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹11,463, suggesting that the forecast performance does not have a long term impact on the company's 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. There are some variant perceptions on Solar Industries India, with the most bullish analyst valuing it at ₹13,250 and the most bearish at ₹9,730 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that Solar Industries India's rate of growth is expected to accelerate meaningfully, with the forecast 67% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 26% p.a. 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 13% per year. 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Solar Industries India's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹11,463, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Solar Industries India analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Solar Industries India is carrying too much debt, and whether its balance sheet is healthy, for 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.