FSN E-Commerce Ventures Limited Just Missed EPS By 60%: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for FSN E-Commerce Ventures Limited (NSE:NYKAA) shares in the week since its second-quarter report, with the stock down 11% to ₹171. Statutory earnings per share fell badly short of expectations, coming in at ₹0.04, some 60% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹19b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for FSN E-Commerce Ventures

Following the latest results, FSN E-Commerce Ventures' 23 analysts are now forecasting revenues of ₹79.8b in 2025. This would be a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 167% to ₹0.40. Before this earnings report, the analysts had been forecasting revenues of ₹80.4b and earnings per share (EPS) of ₹0.62 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at ₹196, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic FSN E-Commerce Ventures analyst has a price target of ₹252 per share, while the most pessimistic values it at ₹140. 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.

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 2025 brings more of the same, according to the analysts, with revenue forecast to display 27% growth on an annualised basis. That is in line with its 25% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 22% per year. 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹196, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple FSN E-Commerce Ventures analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for FSN E-Commerce Ventures that you need to be mindful of.

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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.