Earnings Miss: Alembic Pharmaceuticals Limited Missed EPS By 5.6% And Analysts Are Revising Their Forecasts

Alembic Pharmaceuticals Limited (NSE:APLLTD) just released its latest quarterly report and things are not looking great. Alembic Pharmaceuticals missed analyst forecasts, with revenues of ₹16b and statutory earnings per share (EPS) of ₹7.79, falling short by 3.5% and 5.6% respectively. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Alembic Pharmaceuticals

After the latest results, the eleven analysts covering Alembic Pharmaceuticals are now predicting revenues of ₹67.5b in 2025. If met, this would reflect an okay 6.2% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹32.51, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹68.3b and earnings per share (EPS) of ₹35.39 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,088, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Alembic Pharmaceuticals, with the most bullish analyst valuing it at ₹1,396 and the most bearish at ₹837 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Alembic Pharmaceuticals' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

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.