Cello World Limited Just Missed EPS By 8.1%: Here's What Analysts Think Will Happen Next

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The analysts might have been a bit too bullish on Cello World Limited (NSE:CELLO), given that the company fell short of expectations when it released its quarterly results last week. Cello World missed analyst forecasts, with revenues of ₹5.3b and statutory earnings per share (EPS) of ₹3.31, falling short by 3.6% and 8.1% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cello World after the latest results.

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Taking into account the latest results, the consensus forecast from Cello World's six analysts is for revenues of ₹23.6b in 2026. This reflects a credible 6.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.5% to ₹16.03. In the lead-up to this report, the analysts had been modelling revenues of ₹24.2b and earnings per share (EPS) of ₹17.60 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

See our latest analysis for Cello World

Despite the cuts to forecast earnings, there was no real change to the ₹727 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Cello World, with the most bullish analyst valuing it at ₹950 and the most bearish at ₹590 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 can infer from the latest estimates that forecasts expect a continuation of Cello World'shistorical trends, as the 8.5% annualised revenue growth to the end of 2026 is roughly in line with the 9.4% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 16% per year. So it's pretty clear that Cello World is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Cello World going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.