Arvind Fashions Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for Arvind Fashions Limited (NSE:ARVINDFASN) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.6% to ₹548. Statutory earnings per share fell badly short of expectations, coming in at ₹2.80, some 38% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹14b. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Arvind Fashions' four analysts is for revenues of ₹52.5b in 2026. This reflects a reasonable 6.4% improvement in revenue compared to the last 12 months. Arvind Fashions is also expected to turn profitable, with statutory earnings of ₹11.90 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹52.1b and earnings per share (EPS) of ₹11.05 in 2026. So the consensus seems to have become somewhat more optimistic on Arvind Fashions' earnings potential following these results.

Check out our latest analysis for Arvind Fashions

The consensus price target rose 6.9% to ₹716, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Arvind Fashions, with the most bullish analyst valuing it at ₹749 and the most bearish at ₹641 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 19% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Arvind Fashions' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Arvind Fashions' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Arvind Fashions going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Arvind Fashions that we have uncovered.

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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.