Earnings Update: Cello World Limited (NSE:CELLO) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

Investors in Cello World Limited (NSE:CELLO) had a good week, as its shares rose 4.4% to close at ₹631 following the release of its annual results. Results overall were respectable, with statutory earnings of ₹15.50 per share roughly in line with what the analysts had forecast. Revenues of ₹22b came in 4.1% ahead of analyst predictions. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Cello World's seven analysts is for revenues of ₹24.2b in 2026. This would reflect a notable 11% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 15% to ₹17.70. In the lead-up to this report, the analysts had been modelling revenues of ₹23.9b and earnings per share (EPS) of ₹18.83 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Cello World

The consensus price target held steady at ₹753, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Cello World analyst has a price target of ₹859 per share, while the most pessimistic values it at ₹685. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Cello World'shistorical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 13% annual growth over the past three years. 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 although Cello World is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider 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 plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹753, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Cello World analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Cello World's 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.