Results: Ambuja Cements Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week saw the newest half-yearly earnings release from Ambuja Cements Limited (NSE:AMBUJACEM), an important milestone in the company's journey to build a stronger business. Revenues were ₹194b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹10.55, an impressive 97% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ambuja Cements after the latest results.

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Taking into account the latest results, the most recent consensus for Ambuja Cements from 33 analysts is for revenues of ₹426.9b in 2026. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plummet 31% to ₹15.86 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹429.9b and earnings per share (EPS) of ₹15.54 in 2026. So the consensus seems to have become somewhat more optimistic on Ambuja Cements' earnings potential following these results.

View our latest analysis for Ambuja Cements

The consensus price target was unchanged at ₹660, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Ambuja Cements, with the most bullish analyst valuing it at ₹845 and the most bearish at ₹380 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Ambuja Cements' growth to accelerate, with the forecast 23% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.7% annually. So it's clear with the acceleration in growth, Ambuja Cements is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ambuja Cements' earnings potential next year. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at ₹660, 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 Ambuja Cements. Long-term earnings power is much more important than next year's profits. We have forecasts for Ambuja Cements going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Ambuja Cements , and understanding it should be part of your investment process.

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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.