Analysts Have Made A Financial Statement On Vedanta Limited's (NSE:VEDL) Third-Quarter Report

Vedanta Limited (NSE:VEDL) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. The company beat expectations with revenues of ₹391b arriving 4.8% ahead of forecasts. Statutory earnings per share (EPS) were ₹9.02, 4.3% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Vedanta

Taking into account the latest results, the consensus forecast from Vedanta's 15 analysts is for revenues of ₹1.65t in 2026. This reflects a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 49% to ₹49.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹1.66t and earnings per share (EPS) of ₹49.58 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹529. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Vedanta analyst has a price target of ₹663 per share, while the most pessimistic values it at ₹465. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that Vedanta's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2026 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vedanta.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Vedanta's revenue is expected to perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Vedanta going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Vedanta 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.