JSW Infrastructure Limited Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that JSW Infrastructure Limited (NSE:JSWINFRA) filed its first-quarter result this time last week. The early response was not positive, with shares down 4.4% to ₹325 in the past week. JSW Infrastructure beat revenue expectations by 2.7%, at ₹14b. Statutory earnings per share (EPS) came in at ₹1.65, some 8.3% short of analyst estimates. 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. 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 JSW Infrastructure's 17 analysts is for revenues of ₹65.1b in 2027. This would reflect a decent 16% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 15% to ₹7.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹66.2b and earnings per share (EPS) of ₹7.45 in 2027. 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 JSW Infrastructure

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.6% to ₹375. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on JSW Infrastructure, with the most bullish analyst valuing it at ₹410 and the most bearish at ₹310 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 23% growth on an annualised basis. That is in line with its 20% 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 7.1% per year. So it's pretty clear that JSW Infrastructure is forecast to grow substantially faster than its 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. 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 JSW Infrastructure. Long-term earnings power is much more important than next year's profits. We have forecasts for JSW Infrastructure going out to 2029, and you can see them free on our platform here.

You can also see whether JSW Infrastructure is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.