Results: Ipca Laboratories Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that Ipca Laboratories Limited (NSE:IPCALAB) filed its third-quarter result this time last week. The early response was not positive, with shares down 2.9% to ₹1,464 in the past week. Revenues were ₹22b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹9.78, an impressive 25% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Ipca Laboratories

Taking into account the latest results, the most recent consensus for Ipca Laboratories from 20 analysts is for revenues of ₹100.7b in 2026. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 61% to ₹46.18. Before this earnings report, the analysts had been forecasting revenues of ₹101.3b and earnings per share (EPS) of ₹46.01 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,634. 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. There are some variant perceptions on Ipca Laboratories, with the most bullish analyst valuing it at ₹1,940 and the most bearish at ₹900 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 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 11% 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹1,634, 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 forecasts for Ipca Laboratories going out to 2027, and you can see them free on our platform here.

You can also see whether Ipca Laboratories is carrying too much debt, and whether its balance sheet is healthy, for free 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.