Earnings Miss: FSN E-Commerce Ventures Limited Missed EPS By 63% And Analysts Are Revising Their Forecasts

Last week saw the newest quarterly earnings release from FSN E-Commerce Ventures Limited (NSE:NYKAA), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at ₹0.09, some 63% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹23b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for FSN E-Commerce Ventures

Taking into account the latest results, the most recent consensus for FSN E-Commerce Ventures from 24 analysts is for revenues of ₹100.4b in 2026. If met, it would imply a huge 33% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 429% to ₹0.98. Before this earnings report, the analysts had been forecasting revenues of ₹100.3b and earnings per share (EPS) of ₹1.06 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.

The consensus price target held steady at ₹190, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on FSN E-Commerce Ventures, with the most bullish analyst valuing it at ₹250 and the most bearish at ₹142 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 26% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 21% annually. So although FSN E-Commerce Ventures is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 FSN E-Commerce Ventures. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple FSN E-Commerce Ventures analysts - going out to 2027, 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 FSN E-Commerce Ventures 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.