Biocon Limited Just Missed EPS By 81%: Here's What Analysts Think Will Happen Next

Biocon Limited (NSE:BIOCON) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹38b, statutory earnings missed forecasts by an incredible 81%, coming in at just ₹0.21 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Biocon

After the latest results, the 19 analysts covering Biocon are now predicting revenues of ₹180.0b in 2026. If met, this would reflect a major 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 18% to ₹7.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹182.3b and earnings per share (EPS) of ₹9.29 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at ₹379, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Biocon, with the most bullish analyst valuing it at ₹452 and the most bearish at ₹260 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Biocon shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of Biocon'shistorical trends, as the 17% annualised revenue growth to the end of 2026 is roughly in line with the 21% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 27% annually. So although Biocon is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Biocon. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on Biocon. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Biocon analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Biocon has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.