Earnings Miss: JSW Energy Limited Missed EPS By 26% And Analysts Are Revising Their Forecasts

JSW Energy Limited (NSE:JSWENERGY) just released its latest quarterly report and things are not looking great. Unfortunately, JSW Energy delivered a serious earnings miss. Revenues of ₹25b were 13% below expectations, and statutory earnings per share of ₹1.41 missed estimates by 26%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for JSW Energy

Taking into account the latest results, the most recent consensus for JSW Energy from eight analysts is for revenues of ₹156.9b in 2025. If met, it would imply a substantial 38% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 57% to ₹15.75. Before this earnings report, the analysts had been forecasting revenues of ₹159.0b and earnings per share (EPS) of ₹15.63 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹417. 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 JSW Energy, with the most bullish analyst valuing it at ₹600 and the most bearish at ₹235 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting JSW Energy's growth to accelerate, with the forecast 29% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect JSW Energy to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 JSW Energy. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple JSW Energy analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for JSW Energy (1 is significant!) that you should be aware 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.