Ajanta Pharma Limited (NSE:AJANTPHARM) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Ajanta Pharma Limited (NSE:AJANTPHARM) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.0% to ₹2,801. It was a pretty mixed result, with revenues beating expectations to hit ₹13b. Statutory earnings fell 2.2% short of analyst forecasts, reaching ₹20.43 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Ajanta Pharma's twelve analysts are now forecasting revenues of ₹52.2b in 2026. This would be a notable 8.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to ₹81.95. In the lead-up to this report, the analysts had been modelling revenues of ₹52.0b and earnings per share (EPS) of ₹84.54 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 minor downgrade to their earnings per share forecasts.

View our latest analysis for Ajanta Pharma

The consensus price target held steady at ₹3,010, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Ajanta Pharma analyst has a price target of ₹3,293 per share, while the most pessimistic values it at ₹2,307. 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 Ajanta Pharma shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

Even so, be aware that Ajanta Pharma is showing 1 warning sign in our investment analysis , you should know about...

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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.