Analysts Are Updating Their Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) Estimates After Its Third-Quarter Results

Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of ₹137b arriving 2.1% ahead of forecasts. Statutory earnings per share (EPS) were ₹12.10, 3.4% ahead of estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Sun Pharmaceutical Industries

Following the latest results, Sun Pharmaceutical Industries' 36 analysts are now forecasting revenues of ₹583.9b in 2026. This would be a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 16% to ₹55.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹587.0b and earnings per share (EPS) of ₹55.32 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 ₹2,077, 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 Sun Pharmaceutical Industries at ₹2,450 per share, while the most bearish prices it at ₹1,625. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. It's clear that while Sun Pharmaceutical Industries' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹2,077, 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 Sun Pharmaceutical Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Sun Pharmaceutical Industries going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Sun Pharmaceutical Industries 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.