Gland Pharma Limited Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next

Investors in Gland Pharma Limited (NSE:GLAND) had a good week, as its shares rose 5.9% to close at ₹1,547 following the release of its annual results. Revenues were in line with forecasts, at ₹58b, although statutory earnings per share came in 15% below what the analysts expected, at ₹42.40 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Gland Pharma's ten analysts is for revenues of ₹63.6b in 2026. This reflects a solid 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 35% to ₹57.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹65.4b and earnings per share (EPS) of ₹59.66 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

See our latest analysis for Gland Pharma

The analysts made no major changes to their price target of ₹1,678, suggesting the downgrades are not expected to have a long-term impact on Gland Pharma's valuation. 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. The most optimistic Gland Pharma analyst has a price target of ₹3,120 per share, while the most pessimistic values it at ₹1,162. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Gland Pharma's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% annually. So it's pretty clear that, while Gland Pharma's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at ₹1,678, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Gland Pharma analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Gland Pharma'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.