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

The Supreme Industries Limited (NSE:SUPREMEIND) shareholders are probably feeling a little disappointed, since its shares fell 8.1% to ₹3,849 in the week after its latest quarterly results. It was not a great result overall. While revenues of ₹24b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit ₹12.97 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 current consensus from Supreme Industries' 28 analysts is for revenues of ₹114.7b in 2026. This would reflect a solid 8.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 21% to ₹80.95. Before this earnings report, the analysts had been forecasting revenues of ₹115.8b and earnings per share (EPS) of ₹87.84 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Supreme Industries

The consensus price target held steady at ₹4,381, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Supreme Industries analyst has a price target of ₹5,350 per share, while the most pessimistic values it at ₹3,308. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Supreme Industries' growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 12% per annum 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 Supreme Industries to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Supreme Industries. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹4,381, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Supreme Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Supreme Industries analysts - going out to 2028, and you can see them free on our platform here.

Even so, be aware that Supreme Industries is showing 1 warning sign in our investment analysis , you should know about...

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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.