Torrent Pharmaceuticals Limited Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Torrent Pharmaceuticals Limited (NSE:TORNTPHARM) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 5.9% short of analyst estimates at ₹28b, and statutory earnings of ₹14.88 per share missed forecasts by 3.1%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Torrent Pharmaceuticals

Taking into account the latest results, the consensus forecast from Torrent Pharmaceuticals' 30 analysts is for revenues of ₹131.4b in 2026. This reflects a solid 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 38% to ₹75.70. In the lead-up to this report, the analysts had been modelling revenues of ₹134.8b and earnings per share (EPS) of ₹76.76 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of ₹3,635, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Torrent Pharmaceuticals' market value. 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 Torrent Pharmaceuticals at ₹4,235 per share, while the most bearish prices it at ₹2,932. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 analysts are definitely expecting Torrent Pharmaceuticals' growth to accelerate, with the forecast 13% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Torrent Pharmaceuticals is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at ₹3,635, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Torrent Pharmaceuticals analysts - 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 Torrent Pharmaceuticals 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.