Alkem Laboratories Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

A week ago, Alkem Laboratories Limited (NSE:ALKEM) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 4.2% to hit ₹34b. Alkem Laboratories also reported a statutory profit of ₹55.56, which was an impressive 21% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 21 analysts covering Alkem Laboratories are now predicting revenues of ₹142.4b in 2026. If met, this would reflect a credible 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.5% to ₹200. Before this earnings report, the analysts had been forecasting revenues of ₹141.4b and earnings per share (EPS) of ₹196 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 Alkem Laboratories

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.8% to ₹5,469. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Alkem Laboratories, with the most bullish analyst valuing it at ₹6,576 and the most bearish at ₹4,200 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alkem Laboratories' past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.5% growth on an annualised basis. That is in line with its 9.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. It's clear that while Alkem Laboratories' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Alkem Laboratories' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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 Alkem Laboratories analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Alkem Laboratories that you need to take into consideration.

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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.