Piramal Pharma Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Piramal Pharma Limited (NSE:PPLPHARMA) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share fell badly short of expectations, coming in at ₹0.68, some 26% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹93b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Piramal Pharma after the latest results.

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Taking into account the latest results, the most recent consensus for Piramal Pharma from ten analysts is for revenues of ₹97.6b in 2026. If met, it would imply a credible 5.1% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 49% to ₹1.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹105.2b and earnings per share (EPS) of ₹3.83 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for Piramal Pharma

The consensus price target fell 8.1% to ₹272, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Piramal Pharma analyst has a price target of ₹340 per share, while the most pessimistic values it at ₹230. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Piramal Pharma's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Piramal Pharma.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Piramal Pharma analysts - going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Piramal Pharma that 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.