Neuland Laboratories Limited Beat Revenue Forecasts By 7.6%: Here's What Analysts Are Forecasting Next

Neuland Laboratories Limited (NSE:NEULANDLAB) shareholders are probably feeling a little disappointed, since its shares fell 7.9% to ₹13,647 in the week after its latest third-quarter results. It was a workmanlike result, with revenues of ₹4.0b coming in 7.6% ahead of expectations, and statutory earnings per share of ₹234, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Neuland Laboratories

After the latest results, the dual analysts covering Neuland Laboratories are now predicting revenues of ₹20.4b in 2026. If met, this would reflect a major 33% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 48% to ₹345. Before this earnings report, the analysts had been forecasting revenues of ₹20.9b and earnings per share (EPS) of ₹386 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹17,925 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Neuland Laboratories' rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 17% 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Neuland Laboratories to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Neuland Laboratories. They also downgraded Neuland Laboratories' revenue estimates, but industry data suggests that it is expected to grow faster than 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.

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 analyst estimates for Neuland Laboratories going out as far as 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 Neuland Laboratories 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.