Laurus Labs Limited Beat Revenue Forecasts By 7.0%: Here's What Analysts Are Forecasting Next

Investors in Laurus Labs Limited (NSE:LAURUSLABS) had a good week, as its shares rose 3.1% to close at ₹603 following the release of its third-quarter results. Results overall were respectable, with statutory earnings of ₹1.71 per share roughly in line with what the analysts had forecast. Revenues of ₹14b came in 7.0% ahead of analyst predictions. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Laurus Labs

Taking into account the latest results, the most recent consensus for Laurus Labs from twelve analysts is for revenues of ₹64.6b in 2026. If met, it would imply a major 23% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 189% to ₹10.73. Before this earnings report, the analysts had been forecasting revenues of ₹64.5b and earnings per share (EPS) of ₹10.67 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.2% to ₹471despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Laurus Labs' earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Laurus Labs, with the most bullish analyst valuing it at ₹710 and the most bearish at ₹293 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Laurus Labs' growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 9.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Laurus Labs is expected to grow much faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Laurus Labs analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Laurus Labs .

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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.