Godrej Consumer Products Limited Just Missed EPS By 6.4%: Here's What Analysts Think Will Happen Next

It's been a good week for Godrej Consumer Products Limited (NSE:GODREJCP) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.8% to ₹1,179. Revenues of ₹38b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹4.49, missing estimates by 6.4%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Godrej Consumer Products' 33 analysts are now forecasting revenues of ₹155.6b in 2026. This would be a satisfactory 4.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 20% to ₹21.43. Before this earnings report, the analysts had been forecasting revenues of ₹157.2b and earnings per share (EPS) of ₹22.15 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 Godrej Consumer Products

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,351, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Godrej Consumer Products at ₹1,500 per share, while the most bearish prices it at ₹956. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 Godrej Consumer Products' rate of growth is expected to accelerate meaningfully, with the forecast 9.7% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 6.7% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Godrej Consumer Products is expected to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹1,351, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Godrej Consumer Products. Long-term earnings power is much more important than next year's profits. We have forecasts for Godrej Consumer Products going out to 2028, and you can see them 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.