Dr. Lal PathLabs Limited Just Beat EPS By 12%: Here's What Analysts Think Will Happen Next

It's been a good week for Dr. Lal PathLabs Limited (NSE:LALPATHLAB) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.2% to ₹3,100. Revenues were ₹6.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹15.85 were also better than expected, beating analyst predictions by 12%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Dr. Lal PathLabs' 24 analysts is for revenues of ₹27.5b in 2026. This would reflect a meaningful 8.5% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹61.64, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹27.5b and earnings per share (EPS) of ₹60.11 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Dr. Lal PathLabs

The consensus price target rose 5.6% to ₹3,269, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Dr. Lal PathLabs at ₹4,020 per share, while the most bearish prices it at ₹2,260. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Dr. Lal PathLabs shareholders.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 17% annually. So it's pretty clear that Dr. Lal PathLabs is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dr. Lal PathLabs' 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 Dr. Lal PathLabs' revenue is expected to 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.

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

You should always think about risks though. Case in point, we've spotted 1 warning sign for Dr. Lal PathLabs you should be aware 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.