Earnings Beat: Lupin Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Last week, you might have seen that Lupin Limited (NSE:LUPIN) released its quarterly result to the market. The early response was not positive, with shares down 6.0% to ₹2,055 in the past week. Lupin reported ₹58b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹18.69 beat expectations, being 6.0% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Lupin

Taking into account the latest results, the current consensus from Lupin's 33 analysts is for revenues of ₹252.5b in 2026. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 37% to ₹85.83. In the lead-up to this report, the analysts had been modelling revenues of ₹251.0b and earnings per share (EPS) of ₹84.20 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.

The analysts reconfirmed their price target of ₹2,274, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Lupin at ₹2,799 per share, while the most bearish prices it at ₹1,671. 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.

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. It's clear from the latest estimates that Lupin's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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 ₹2,274, with the latest estimates not enough to have an impact on their price targets.

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

You should always think about risks though. Case in point, we've spotted 1 warning sign for Lupin 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.