Earnings Beat: Cipla Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Cipla Limited (NSE:CIPLA) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of ₹271b were in line with what the analysts predicted, Cipla surprised by delivering a statutory profit of ₹65.24 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the 36 analysts covering Cipla are now predicting revenues of ₹295.9b in 2026. If met, this would reflect a decent 9.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 5.4% to ₹61.78 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹299.8b and earnings per share (EPS) of ₹64.44 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.

Check out our latest analysis for Cipla

The consensus price target held steady at ₹1,650, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Cipla analyst has a price target of ₹1,875 per share, while the most pessimistic values it at ₹1,280. 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 Cipla shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of Cipla'shistorical trends, as the 9.0% annualised revenue growth to the end of 2026 is roughly in line with the 9.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. It's clear that while Cipla's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Cipla. Long-term earnings power is much more important than next year's profits. We have forecasts for Cipla going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Cipla's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.