Arvind Fashions Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Arvind Fashions Limited (NSE:ARVINDFASN) shareholders, because the company has just released its latest yearly results, and the shares gained 5.7% to ₹473. Things were not great overall, with a surprise (statutory) loss of ₹2.67 per share on revenues of ₹47b, even though the analysts had been expecting a profit. 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.

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After the latest results, the four analysts covering Arvind Fashions are now predicting revenues of ₹51.6b in 2026. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Arvind Fashions is also expected to turn profitable, with statutory earnings of ₹12.10 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹51.6b and earnings per share (EPS) of ₹12.20 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Arvind Fashions

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹674. 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 Arvind Fashions, with the most bullish analyst valuing it at ₹710 and the most bearish at ₹633 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Arvind Fashions'historical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 21% annually. So it's pretty clear that Arvind Fashions is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Arvind Fashions. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Arvind Fashions going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Arvind Fashions' balance sheet, and whether we think Arvind Fashions is carrying too much debt, 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.