Earnings Miss: Marico Limited Missed EPS By 6.7% And Analysts Are Revising Their Forecasts

Investors in Marico Limited (NSE:MARICO) had a good week, as its shares rose 2.7% to close at ₹739 following the release of its interim results. Marico reported revenues of ₹67b, which blew past expectations. Statutory earnings per share (EPS) of ₹3.24 came in 6.7% short of forecasts. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 36 analysts covering Marico are now predicting revenues of ₹133.4b in 2026. If met, this would reflect a meaningful 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.9% to ₹13.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹129.0b and earnings per share (EPS) of ₹13.81 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

Check out our latest analysis for Marico

Even though revenue forecasts increased, there was no change to the consensus price target of ₹810, suggesting the analysts are focused on earnings as the driver of value creation. 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 Marico, with the most bullish analyst valuing it at ₹899 and the most bearish at ₹709 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's clear from the latest estimates that Marico's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Marico is expected to grow much 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, they also upgraded their revenue estimates, and are forecasting them to grow faster 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 Marico going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Marico you should know about.

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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.