Biocon Limited Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that Biocon Limited (NSE:BIOCON) filed its yearly result this time last week. The early response was not positive, with shares down 3.5% to ₹342 in the past week. It looks like a credible result overall - although revenues of ₹153b were in line with what the analysts predicted, Biocon surprised by delivering a statutory profit of ₹8.46 per share, a notable 16% above expectations. 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 Biocon after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

After the latest results, the 17 analysts covering Biocon are now predicting revenues of ₹175.8b in 2026. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 21% to ₹6.65 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹176.2b and earnings per share (EPS) of ₹6.82 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

View our latest analysis for Biocon

The consensus price target held steady at ₹374, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Biocon, with the most bullish analyst valuing it at ₹447 and the most bearish at ₹270 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Biocon's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2026 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 23% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Biocon.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Biocon. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Biocon's revenue is expected to 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 forecasts for Biocon going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Biocon (1 doesn't sit too well with us!) that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.