Sun Pharmaceutical Industries Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week saw the newest second-quarter earnings release from Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA), an important milestone in the company's journey to build a stronger business. Revenues were ₹133b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹12.70 were also better than expected, beating analyst predictions by 12%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sun Pharmaceutical Industries after the latest results.

View our latest analysis for Sun Pharmaceutical Industries

Following the latest results, Sun Pharmaceutical Industries' 36 analysts are now forecasting revenues of ₹529.4b in 2025. This would be a reasonable 5.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.1% to ₹47.94. Before this earnings report, the analysts had been forecasting revenues of ₹531.5b and earnings per share (EPS) of ₹46.99 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 8.8% to ₹2,023, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Sun Pharmaceutical Industries at ₹2,450 per share, while the most bearish prices it at ₹1,600. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 10% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sun Pharmaceutical Industries' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Sun Pharmaceutical Industries analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Sun Pharmaceutical Industries that we have uncovered.

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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.