Sun Pharmaceutical Industries Limited Just Beat EPS By 10%: Here's What Analysts Think Will Happen Next

Last week saw the newest first-quarter earnings release from Sun Pharmaceutical Industries Limited (NSE:SUNPHARMA), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of ₹127b were in line with what the analysts predicted, Sun Pharmaceutical Industries surprised by delivering a statutory profit of ₹11.80 per share, a notable 10% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sun Pharmaceutical Industries

Taking into account the latest results, the most recent consensus for Sun Pharmaceutical Industries from 34 analysts is for revenues of ₹531.9b in 2025. If met, it would imply a decent 8.1% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 8.3% to ₹46.89. Before this earnings report, the analysts had been forecasting revenues of ₹531.9b and earnings per share (EPS) of ₹45.80 in 2025. So the consensus seems to have become somewhat more optimistic on Sun Pharmaceutical Industries' earnings potential following these results.

The consensus price target rose 7.0% to ₹1,749, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sun Pharmaceutical Industries analyst has a price target of ₹2,000 per share, while the most pessimistic values it at ₹1,444. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. 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 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.

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