Earnings Update: Here's Why Analysts Just Lifted Their Indoco Remedies Limited (NSE:INDOCO) Price Target To ₹259

Indoco Remedies Limited (NSE:INDOCO) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results were positive, with revenue coming in at ₹4.3b, beating analyst expectations by 6.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Indoco Remedies' four analysts are now forecasting revenues of ₹18.8b in 2026. This would be a decent 13% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching ₹1.35 per share. In the lead-up to this report, the analysts had been modelling revenues of ₹18.9b and earnings per share (EPS) of ₹5.58 in 2026. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.

Check out our latest analysis for Indoco Remedies

Despite expectations of heavier losses next year,the analysts have lifted their price target 5.9% to ₹259, perhaps implying these losses are not expected to be recurring over the long term. 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. The most optimistic Indoco Remedies analyst has a price target of ₹325 per share, while the most pessimistic values it at ₹207. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Indoco Remedies' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Indoco Remedies is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Indoco Remedies to become unprofitable next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Indoco Remedies 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.