Tatva Chintan Pharma Chem Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Shareholders might have noticed that Tatva Chintan Pharma Chem Limited (NSE:TATVA) filed its quarterly result this time last week. The early response was not positive, with shares down 8.0% to ₹776 in the past week. Although revenues of ₹859m were in line with analyst expectations, Tatva Chintan Pharma Chem surprised on the earnings front, with an unexpected (statutory) profit of ₹0.06 per share a nice improvement on the losses that the analystsforecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Tatva Chintan Pharma Chem

Taking into account the latest results, the consensus forecast from Tatva Chintan Pharma Chem's three analysts is for revenues of ₹4.99b in 2026. This reflects a substantial 34% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 239% to ₹20.70. In the lead-up to this report, the analysts had been modelling revenues of ₹5.81b and earnings per share (EPS) of ₹28.57 in 2026. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.

Despite the cuts to forecast earnings, there was no real change to the ₹1,123 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Tatva Chintan Pharma Chem, with the most bullish analyst valuing it at ₹1,925 and the most bearish at ₹585 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Tatva Chintan Pharma Chem's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.1% 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 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Tatva Chintan Pharma Chem is expected to grow much faster than its 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹1,123, 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. We have estimates - from multiple Tatva Chintan Pharma Chem analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Tatva Chintan Pharma Chem that 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.