Atul Ltd Just Missed Earnings - But Analysts Have Updated Their Models

Atul Ltd (NSE:ATUL) shareholders are probably feeling a little disappointed, since its shares fell 5.9% to ₹6,335 in the week after its latest third-quarter results. It was not a great result overall. Although revenues beat expectations, hitting ₹14b, statutory earnings missed analyst forecasts by 15%, coming in at just ₹36.93 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Atul

Taking into account the latest results, the consensus forecast from Atul's twelve analysts is for revenues of ₹63.9b in 2026. This reflects a meaningful 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 60% to ₹225. Before this earnings report, the analysts had been forecasting revenues of ₹63.8b and earnings per share (EPS) of ₹227 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.

The analysts reconfirmed their price target of ₹7,908, showing that the business is executing well and in line with expectations. 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 Atul analyst has a price target of ₹9,521 per share, while the most pessimistic values it at ₹5,144. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Atul's growth to accelerate, with the forecast 15% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Atul is expected to grow at about the same rate as the wider 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. 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 ₹7,908, 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. At Simply Wall St, we have a full range of analyst estimates for Atul going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Atul 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.