Solar Industries India Limited Recorded A 15% Miss On Revenue: Analysts Are Revisiting Their Models

Last week, you might have seen that Solar Industries India Limited (NSE:SOLARINDS) released its quarterly result to the market. The early response was not positive, with shares down 4.1% to ₹10,279 in the past week. Revenues were ₹17b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹92.38 being in line with what the analysts anticipated. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Solar Industries India

Taking into account the latest results, the most recent consensus for Solar Industries India from four analysts is for revenues of ₹81.5b in 2025. If met, it would imply a major 34% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 40% to ₹144. Before this earnings report, the analysts had been forecasting revenues of ₹79.7b and earnings per share (EPS) of ₹136 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.

It will come as no surprise to learn that the analysts have increased their price target for Solar Industries India 11% to ₹11,446on the back of these upgrades. 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. The most optimistic Solar Industries India analyst has a price target of ₹13,250 per share, while the most pessimistic values it at ₹9,730. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Solar Industries India's growth to accelerate, with the forecast 48% annualised growth to the end of 2025 ranking favourably alongside historical growth of 27% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% 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 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Solar Industries India. Long-term earnings power is much more important than next year's profits. We have forecasts for Solar Industries India going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Solar Industries India's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.