ACC Limited Just Missed EPS By 25%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that ACC Limited (NSE:ACC) released its quarterly result to the market. The early response was not positive, with shares down 6.2% to ₹1,848 in the past week. Results overall were not great, with earnings of ₹19.94 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹61b and were slightly better than forecasts. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the 20 analysts covering ACC are now predicting revenues of ₹236.3b in 2026. If met, this would reflect a reasonable 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 19% to ₹105 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹233.3b and earnings per share (EPS) of ₹103 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for ACC

The analysts reconfirmed their price target of ₹2,212, showing that the business is executing well and in line with expectations. 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. The most optimistic ACC analyst has a price target of ₹2,875 per share, while the most pessimistic values it at ₹1,670. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that ACC's revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2026 being well below the historical 9.6% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.5% annually. So it's clear that despite the slowdown in growth, ACC is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that ACC's revenue is expected to perform better than the wider industry. The consensus price target held steady at ₹2,212, with the latest estimates not enough to have an impact on their price targets.

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 ACC analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for ACC that you should be aware 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.