Analysts Are Updating Their Lupin Limited (NSE:LUPIN) Estimates After Its Annual Results

Last week saw the newest full-year earnings release from Lupin Limited (NSE:LUPIN), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹227b and statutory earnings per share of ₹71.69 both in line with analyst estimates, showing that Lupin is executing in line with expectations. 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.

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Taking into account the latest results, the most recent consensus for Lupin from 35 analysts is for revenues of ₹254.3b in 2026. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 22% to ₹87.61. Before this earnings report, the analysts had been forecasting revenues of ₹252.8b and earnings per share (EPS) of ₹85.26 in 2026. So the consensus seems to have become somewhat more optimistic on Lupin's earnings potential following these results.

Check out our latest analysis for Lupin

There's been no major changes to the consensus price target of ₹2,257, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Lupin at ₹2,626 per share, while the most bearish prices it at ₹1,889. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The analysts are definitely expecting Lupin's growth to accelerate, with the forecast 12% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Lupin is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Lupin following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider 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 Lupin. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lupin going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - Lupin has 1 warning sign we think you should be aware of.

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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.