Here's What Analysts Are Forecasting For Biocon Limited (NSE:BIOCON) After Its Second-Quarter Results

Last week saw the newest second-quarter earnings release from Biocon Limited (NSE:BIOCON), an important milestone in the company's journey to build a stronger business. Biocon reported in line with analyst predictions, delivering revenues of ₹36b and statutory earnings per share of ₹8.54, suggesting the business is executing well and in line with its plan. 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 Biocon

Taking into account the latest results, the most recent consensus for Biocon from 14 analysts is for revenues of ₹153.6b in 2025. If met, it would imply a modest 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to nosedive 32% to ₹8.13 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹155.8b and earnings per share (EPS) of ₹8.82 in 2025. 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 minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹339, 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 Biocon, with the most bullish analyst valuing it at ₹466 and the most bearish at ₹230 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Biocon's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Biocon's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 29% 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. At Simply Wall St, we have a full range of analyst estimates for Biocon 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 2 warning signs (and 1 which is concerning) 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.