JSW Steel Limited Just Recorded A 52% EPS Beat: Here's What Analysts Are Forecasting Next

JSW Steel Limited (NSE:JSWSTEEL) just released its first-quarter report and things are looking bullish. The company beat forecasts, with revenue of ₹474b, some 3.4% above estimates, and statutory earnings per share (EPS) coming in at ₹19.02, 52% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, JSW Steel's 35 analysts are now forecasting revenues of ₹2.01t in 2027. This would be a modest 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 40% to ₹61.29 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹2.00t and earnings per share (EPS) of ₹59.45 in 2027. So the consensus seems to have become somewhat more optimistic on JSW Steel's earnings potential following these results.

View our latest analysis for JSW Steel

There's been no major changes to the consensus price target of ₹1,375, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic JSW Steel analyst has a price target of ₹1,650 per share, while the most pessimistic values it at ₹1,100. 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. We can infer from the latest estimates that forecasts expect a continuation of JSW Steel'shistorical trends, as the 8.3% annualised revenue growth to the end of 2027 is roughly in line with the 7.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So although JSW Steel is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around JSW Steel's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 JSW Steel going out to 2029, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with JSW Steel (including 1 which is potentially serious) .

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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.