Ipca Laboratories Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Ipca Laboratories Limited (NSE:IPCALAB) released its yearly result to the market. The early response was not positive, with shares down 2.4% to ₹1,425 in the past week. It looks like a pretty bad result, all things considered. Although revenues of ₹89b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 21% to hit ₹29.08 per share. 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. 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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Taking into account the latest results, the consensus forecast from Ipca Laboratories' 17 analysts is for revenues of ₹99.6b in 2026. This reflects a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 55% to ₹45.10. In the lead-up to this report, the analysts had been modelling revenues of ₹101.0b and earnings per share (EPS) of ₹46.25 in 2026. 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.

View our latest analysis for Ipca Laboratories

The consensus price target held steady at ₹1,580, 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. There are some variant perceptions on Ipca Laboratories, with the most bullish analyst valuing it at ₹1,918 and the most bearish at ₹900 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ipca Laboratories' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Ipca Laboratories'historical trends, as the 11% annualised revenue growth to the end of 2026 is roughly in line with the 12% 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 Ipca Laboratories' 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ipca Laboratories going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Ipca Laboratories that we have uncovered.

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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.