Earnings Miss: Indoco Remedies Limited Missed EPS By 56% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Indoco Remedies Limited (NSE:INDOCO), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with ₹4.6b revenue coming in 4.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹1.69 missed the mark badly, arriving some 56% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Indoco Remedies

After the latest results, the six analysts covering Indoco Remedies are now predicting revenues of ₹20.6b in 2025. If met, this would reflect a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 81% to ₹20.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹20.7b and earnings per share (EPS) of ₹21.40 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹382, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Indoco Remedies at ₹425 per share, while the most bearish prices it at ₹358. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Indoco Remedies is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Indoco Remedies' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Indoco Remedies'historical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Indoco Remedies is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Indoco Remedies. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Indoco Remedies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Indoco Remedies analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Indoco Remedies that you need to take into consideration.

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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.