Vedanta Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Vedanta Limited (NSE:VEDL) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.7% to hit ₹355b. Vedanta also reported a statutory profit of ₹5.38, which was an impressive 74% 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Vedanta

Taking into account the latest results, Vedanta's twelve analysts currently expect revenues in 2025 to be ₹1.45t, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 133% to ₹29.82. In the lead-up to this report, the analysts had been modelling revenues of ₹1.45t and earnings per share (EPS) of ₹29.94 in 2025. 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 ₹271. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Vedanta at ₹371 per share, while the most bearish prices it at ₹200. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Vedanta's revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2025 being well below the historical 14% 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 8.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vedanta is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 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 estimates - from multiple Vedanta analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Vedanta you should be aware of, and 1 of them is a bit unpleasant.

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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.