Alembic Pharmaceuticals Limited Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Alembic Pharmaceuticals Limited (NSE:APLLTD), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Alembic Pharmaceuticals missed earnings this time around, with ₹17b revenue coming in 2.5% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹7.01 also fell short of expectations by 12%. 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.

See our latest analysis for Alembic Pharmaceuticals

Taking into account the latest results, the consensus forecast from Alembic Pharmaceuticals' ten analysts is for revenues of ₹74.1b in 2026. This reflects a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 31% to ₹40.34. In the lead-up to this report, the analysts had been modelling revenues of ₹74.5b and earnings per share (EPS) of ₹42.39 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The average price target fell 5.3% to ₹1,109, with reduced earnings forecasts clearly tied to a lower valuation estimate. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Alembic Pharmaceuticals at ₹1,412 per share, while the most bearish prices it at ₹895. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Alembic Pharmaceuticals' growth to accelerate, with the forecast 12% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Alembic Pharmaceuticals' future valuation.

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

You still need to take note of risks, for example - Alembic Pharmaceuticals 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.