Piramal Pharma Limited (NSE:PPLPHARMA) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Last week, you might have seen that Piramal Pharma Limited (NSE:PPLPHARMA) released its quarterly result to the market. The early response was not positive, with shares down 3.5% to ₹231 in the past week. It was a workmanlike result, with revenues of ₹22b coming in 3.7% ahead of expectations, and statutory earnings per share of ₹0.14, in line with analyst appraisals. 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.

View our latest analysis for Piramal Pharma

Taking into account the latest results, the consensus forecast from Piramal Pharma's seven analysts is for revenues of ₹106.8b in 2026. This reflects a decent 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 1,307% to ₹4.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹106.4b and earnings per share (EPS) of ₹4.37 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ₹304, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Piramal Pharma, with the most bullish analyst valuing it at ₹340 and the most bearish at ₹265 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Piramal Pharma's growth to accelerate, with the forecast 15% annualised growth to the end of 2026 ranking favourably alongside historical growth of 11% per annum over the past three 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 Piramal Pharma is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Piramal Pharma. 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 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 Piramal Pharma. Long-term earnings power is much more important than next year's profits. We have forecasts for Piramal Pharma going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Piramal Pharma you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.