Eureka Forbes Limited Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next

Shareholders will be ecstatic, with their stake up 22% over the past week following Eureka Forbes Limited's (NSE:EUREKAFORB) latest annual results. Revenues were ₹25b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹8.46 were also better than expected, beating analyst predictions by 15%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Eureka Forbes' six analysts is for revenues of ₹27.8b in 2026. This would reflect a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 24% to ₹10.54. Before this earnings report, the analysts had been forecasting revenues of ₹27.9b and earnings per share (EPS) of ₹10.37 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Eureka Forbes

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.7% to ₹686. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Eureka Forbes, with the most bullish analyst valuing it at ₹800 and the most bearish at ₹603 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eureka Forbes' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Eureka Forbes' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Eureka Forbes.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Eureka Forbes going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Eureka Forbes' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.