Alembic Pharmaceuticals Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analysts might have been a bit too bullish on Alembic Pharmaceuticals Limited (NSE:APLLTD), given that the company fell short of expectations when it released its first-quarter results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹16b, statutory earnings missed forecasts by 17%, coming in at just ₹6.84 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alembic Pharmaceuticals after the latest results.

View our latest analysis for Alembic Pharmaceuticals

Taking into account the latest results, the most recent consensus for Alembic Pharmaceuticals from twelve analysts is for revenues of ₹68.6b in 2025. If met, it would imply a solid 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.0% to ₹34.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹69.4b and earnings per share (EPS) of ₹35.63 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹1,022, 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. Currently, the most bullish analyst values Alembic Pharmaceuticals at ₹1,229 per share, while the most bearish prices it at ₹837. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alembic Pharmaceuticals' past performance and to peers in the same industry. The analysts are definitely expecting Alembic Pharmaceuticals' growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Alembic Pharmaceuticals is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Alembic Pharmaceuticals. 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.

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 forecasts for Alembic Pharmaceuticals going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Alembic Pharmaceuticals .

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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.