Earnings Beat: Syrma SGS Technology Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a pretty great week for Syrma SGS Technology Limited (NSE:SYRMA) shareholders, with its shares surging 15% to ₹532 in the week since its latest third-quarter results. Revenues missed the mark, coming in 11% below forecasts, at ₹8.7b. Statutory profits were better overall though, with per-share profits of ₹2.74 being a notable 16% above what the analysts were modelling. 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. 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 Syrma SGS Technology

Taking into account the latest results, the current consensus from Syrma SGS Technology's 19 analysts is for revenues of ₹57.5b in 2026. This would reflect a sizeable 44% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 65% to ₹12.86. In the lead-up to this report, the analysts had been modelling revenues of ₹60.2b and earnings per share (EPS) of ₹13.08 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus price target rose 5.1% to ₹584, with the analysts apparently satisfied with the business performance despite lower revenue forecasts. 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. Currently, the most bullish analyst values Syrma SGS Technology at ₹740 per share, while the most bearish prices it at ₹322. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 would highlight that Syrma SGS Technology's revenue growth is expected to slow, with the forecast 34% annualised growth rate until the end of 2026 being well below the historical 45% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 25% annually. So it's pretty clear that, while Syrma SGS Technology's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Syrma SGS Technology's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Syrma SGS Technology. 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 Syrma SGS Technology 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 2 warning signs for Syrma SGS Technology 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.