Atul Ltd (NSE:ATUL) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Shareholders of Atul Ltd (NSE:ATUL) will be pleased this week, given that the stock price is up 12% to ₹6,761 following its latest annual results. Revenues of ₹56b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹164, missing estimates by 3.5%. 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 Atul after the latest results.

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Following the latest results, Atul's eleven analysts are now forecasting revenues of ₹64.8b in 2026. This would be a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 43% to ₹235. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹63.7b and earnings per share (EPS) of ₹221 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Atul

The consensus price target was unchanged at ₹7,553, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Atul analyst has a price target of ₹8,810 per share, while the most pessimistic values it at ₹5,146. 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.

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. The analysts are definitely expecting Atul's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Atul to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Atul following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Atul. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Atul analysts - 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 Atul , and understanding this 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.