Analysts Have Made A Financial Statement On Zydus Wellness Limited's (NSE:ZYDUSWELL) Third-Quarter Report

Last week, you might have seen that Zydus Wellness Limited (NSE:ZYDUSWELL) released its third-quarter result to the market. The early response was not positive, with shares down 2.1% to ₹1,787 in the past week. Results overall were respectable, with statutory earnings of ₹41.94 per share roughly in line with what the analysts had forecast. Revenues of ₹4.6b came in 4.3% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Zydus Wellness

Taking into account the latest results, the current consensus from Zydus Wellness' six analysts is for revenues of ₹30.2b in 2026. This would reflect a notable 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 37% to ₹70.08. In the lead-up to this report, the analysts had been modelling revenues of ₹30.1b and earnings per share (EPS) of ₹71.34 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,272. 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 Zydus Wellness analyst has a price target of ₹2,532 per share, while the most pessimistic values it at ₹1,989. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Zydus Wellness' rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Zydus Wellness 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 ₹2,272, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Zydus Wellness 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 Zydus Wellness that you need to be mindful 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.