Hindustan Unilever Limited (NSE:HINDUNILVR) Just Reported Earnings, And Analysts Cut Their Target Price

As you might know, Hindustan Unilever Limited (NSE:HINDUNILVR) recently reported its third-quarter numbers. Results were roughly in line with estimates, with revenues of ₹158b and statutory earnings per share of ₹43.74. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hindustan Unilever after the latest results.

View our latest analysis for Hindustan Unilever

After the latest results, the 24 analysts covering Hindustan Unilever are now predicting revenues of ₹662.0b in 2026. If met, this would reflect a satisfactory 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.5% to ₹48.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹694.0b and earnings per share (EPS) of ₹50.60 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.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.0% to ₹2,640. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Hindustan Unilever analyst has a price target of ₹3,225 per share, while the most pessimistic values it at ₹1,924. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's pretty clear that there is an expectation that Hindustan Unilever's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.5% growth on an annualised basis. This is compared to a historical growth rate of 10.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hindustan Unilever.

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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hindustan Unilever's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hindustan Unilever analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Hindustan Unilever that you need to be mindful of.

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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.