Earnings Beat: Alkem Laboratories Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for Alkem Laboratories Limited (NSE:ALKEM) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.5% to ₹5,715. Revenues of ₹30b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹45.60 an impressive 27% ahead of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Alkem Laboratories

Taking into account the latest results, the consensus forecast from Alkem Laboratories' 20 analysts is for revenues of ₹137.4b in 2025. This reflects a credible 7.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.1% to ₹186. In the lead-up to this report, the analysts had been modelling revenues of ₹139.4b and earnings per share (EPS) of ₹179 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at ₹5,471, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Alkem Laboratories, with the most bullish analyst valuing it at ₹6,891 and the most bearish at ₹3,960 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% 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. So although Alkem Laboratories 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 takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Alkem Laboratories' earnings potential next year. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Alkem Laboratories going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Alkem Laboratories has 1 warning sign we think 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.