Concord Biotech Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Concord Biotech Limited (NSE:CONCORDBIO) shareholders, because the company has just released its latest second-quarter results, and the shares gained 7.5% to ₹1,499. The results were mixed; although revenues of ₹2.5b fell 16% short of what the analysts had predicted, per-share (statutory) earnings of ₹6.03 beat expectations by 26%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the six analysts covering Concord Biotech are now predicting revenues of ₹13.0b in 2026. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 11% to ₹34.45. Before this earnings report, the analysts had been forecasting revenues of ₹14.0b and earnings per share (EPS) of ₹39.21 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for Concord Biotech

The analysts made no major changes to their price target of ₹1,812, suggesting the downgrades are not expected to have a long-term impact on Concord Biotech's valuation. 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 Concord Biotech analyst has a price target of ₹1,970 per share, while the most pessimistic values it at ₹1,500. This is a very narrow spread of estimates, implying either that Concord Biotech is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The analysts are definitely expecting Concord Biotech's growth to accelerate, with the forecast 31% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.2% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Concord Biotech to grow faster than the wider industry.

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 downgraded Concord Biotech's revenue estimates, but industry data suggests that it is expected to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Concord Biotech analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.