Vedanta Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The quarterly results for Vedanta Limited (NSE:VEDL) were released last week, making it a good time to revisit its performance. Revenue of ₹399b surpassed estimates by 4.3%, although statutory earnings per share missed badly, coming in 53% below expectations at ₹4.56 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the twelve analysts covering Vedanta are now predicting revenues of ₹1.62t in 2026. If met, this would reflect a credible 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 47% to ₹45.33. Before this earnings report, the analysts had been forecasting revenues of ₹1.60t and earnings per share (EPS) of ₹42.30 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Vedanta

There's been no major changes to the consensus price target of ₹526, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 ₹601 per share, while the most pessimistic values it at ₹450. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Vedanta's revenue growth is expected to slow, with the forecast 7.9% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vedanta's earnings potential next year. 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. The consensus price target held steady at ₹526, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Vedanta. Long-term earnings power is much more important than next year's profits. We have forecasts for Vedanta going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Vedanta (of which 1 shouldn't be ignored!) you should know about.

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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.