Tatva Chintan Pharma Chem Limited Just Beat EPS By 6.0%: Here's What Analysts Think Will Happen Next

Shareholders of Tatva Chintan Pharma Chem Limited (NSE:TATVA) will be pleased this week, given that the stock price is up 13% to ₹1,528 following its latest quarterly results. Tatva Chintan Pharma Chem reported ₹1.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹4.24 beat expectations, being 6.0% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Tatva Chintan Pharma Chem's three analysts is for revenues of ₹5.02b in 2026. This would reflect a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 180% to ₹21.20. In the lead-up to this report, the analysts had been modelling revenues of ₹4.95b and earnings per share (EPS) of ₹19.43 in 2026. So the consensus seems to have become somewhat more optimistic on Tatva Chintan Pharma Chem's earnings potential following these results.

View our latest analysis for Tatva Chintan Pharma Chem

The consensus price target was unchanged at ₹865, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Tatva Chintan Pharma Chem analyst has a price target of ₹1,200 per share, while the most pessimistic values it at ₹535. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tatva Chintan Pharma Chem's past performance and to peers in the same industry. For example, we noticed that Tatva Chintan Pharma Chem's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 33% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.6% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. Not only are Tatva Chintan Pharma Chem's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tatva Chintan Pharma Chem's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹865, 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 Tatva Chintan Pharma Chem going out to 2028, 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 Tatva Chintan Pharma Chem 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.