Ethos Limited Just Beat Revenue By 7.8%: Here's What Analysts Think Will Happen Next

Ethos Limited (NSE:ETHOSLTD) shareholders are probably feeling a little disappointed, since its shares fell 5.3% to ₹2,782 in the week after its latest second-quarter results. Results overall were respectable, with statutory earnings of ₹8.78 per share roughly in line with what the analysts had forecast. Revenues of ₹3.8b came in 7.8% ahead of analyst predictions. 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 Ethos after the latest results.

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Taking into account the latest results, the current consensus from Ethos' twin analysts is for revenues of ₹15.9b in 2026. This would reflect a notable 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 20% to ₹42.50. In the lead-up to this report, the analysts had been modelling revenues of ₹15.7b and earnings per share (EPS) of ₹51.35 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for Ethos

Despite cutting their earnings forecasts,the analysts have lifted their price target 7.7% to ₹3,500, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ethos' past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 27% growth on an annualised basis. That is in line with its 23% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 19% per year. So although Ethos is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

We also provide an overview of the Ethos Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.