Aurobindo Pharma Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Aurobindo Pharma Limited (NSE:AUROPHARMA) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to ₹1,192. It looks like the results were a bit of a negative overall. While revenues of ₹80b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.7% to hit ₹14.56 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Aurobindo Pharma

After the latest results, the 27 analysts covering Aurobindo Pharma are now predicting revenues of ₹347.2b in 2026. If met, this would reflect a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 29% to ₹77.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹347.6b and earnings per share (EPS) of ₹78.36 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,533. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Aurobindo Pharma analyst has a price target of ₹1,930 per share, while the most pessimistic values it at ₹1,145. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Aurobindo Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 9.7% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Aurobindo Pharma 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 most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹1,533, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Aurobindo Pharma. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Aurobindo Pharma analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Aurobindo Pharma is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.