Revenue Beat: Zydus Wellness Limited Beat Analyst Estimates By 7.3%

Last week, you might have seen that Zydus Wellness Limited (NSE:ZYDUSWELL) released its first-quarter result to the market. The early response was not positive, with shares down 5.3% to ₹2,261 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 ₹8.4b came in 7.3% 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Zydus Wellness

Taking into account the latest results, the consensus forecast from Zydus Wellness' six analysts is for revenues of ₹26.2b in 2025. This reflects a credible 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 30% to ₹62.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹26.0b and earnings per share (EPS) of ₹62.13 in 2025. 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.

The consensus price target rose 16% to ₹2,263despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Zydus Wellness' earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Zydus Wellness at ₹3,001 per share, while the most bearish prices it at ₹2,001. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zydus Wellness' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Zydus Wellness'historical trends, as the 8.4% annualised revenue growth to the end of 2025 is roughly in line with the 9.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So although Zydus Wellness is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

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 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. We have forecasts for Zydus Wellness going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Zydus Wellness' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.

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