Ajanta Pharma Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Ajanta Pharma Limited (NSE:AJANTPHARM) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.7% to ₹2,694 in the past week. Revenues were ₹11b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹18.59 were also better than expected, beating analyst predictions by 13%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Ajanta Pharma

After the latest results, the nine analysts covering Ajanta Pharma are now predicting revenues of ₹52.2b in 2026. If met, this would reflect a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 20% to ₹86.22. Before this earnings report, the analysts had been forecasting revenues of ₹53.0b and earnings per share (EPS) of ₹88.53 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹3,030, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Ajanta Pharma at ₹3,667 per share, while the most bearish prices it at ₹2,288. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Ajanta Pharma'shistorical trends, as the 12% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Ajanta Pharma is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ajanta Pharma. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹3,030, 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 Ajanta Pharma going out to 2027, 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 Ajanta Pharma 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.