Results: UltraTech Cement Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

UltraTech Cement Limited (NSE:ULTRACEMCO) just released its third-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.0% to hit ₹172b. UltraTech Cement also reported a statutory profit of ₹50.94, which was an impressive 22% above what the analysts had forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for UltraTech Cement

Following the latest results, UltraTech Cement's 35 analysts are now forecasting revenues of ₹872.3b in 2026. This would be a sizeable 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 49% to ₹323. In the lead-up to this report, the analysts had been modelling revenues of ₹857.1b and earnings per share (EPS) of ₹321 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 ₹12,473, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic UltraTech Cement analyst has a price target of ₹13,800 per share, while the most pessimistic values it at ₹7,100. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await UltraTech Cement shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting UltraTech Cement's growth to accelerate, with the forecast 17% annualised growth to the end of 2026 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that UltraTech Cement is expected to grow much 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. The consensus price target held steady at ₹12,473, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for UltraTech Cement going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for UltraTech Cement that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.