Earnings Miss: UltraTech Cement Limited Missed EPS By 6.7% And Analysts Are Revising Their Forecasts

UltraTech Cement Limited (NSE:ULTRACEMCO) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to ₹11,641 in the week after its latest annual results. It was a pretty mixed result, with revenues beating expectations to hit ₹760b. Statutory earnings fell 6.7% short of analyst forecasts, reaching ₹205 per share. 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 UltraTech Cement after the latest results.

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After the latest results, the 35 analysts covering UltraTech Cement are now predicting revenues of ₹881.3b in 2026. If met, this would reflect a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 48% to ₹310. In the lead-up to this report, the analysts had been modelling revenues of ₹870.8b and earnings per share (EPS) of ₹316 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.

View our latest analysis for UltraTech Cement

There were no changes to revenue or earnings estimates or the price target of ₹12,835, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic UltraTech Cement analyst has a price target of ₹14,200 per share, while the most pessimistic values it at ₹7,350. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.1% per year. So it's pretty clear that UltraTech Cement is forecast to grow substantially faster than its 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 numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

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 UltraTech Cement 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 UltraTech Cement 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.