Analysts Are Updating Their Zydus Lifesciences Limited (NSE:ZYDUSLIFE) Estimates After Its Second-Quarter Results

Zydus Lifesciences Limited (NSE:ZYDUSLIFE) just released its latest second-quarter results and things are looking bullish. The company beat expectations with revenues of ₹61b arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were ₹12.51, 4.4% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the current consensus from Zydus Lifesciences' 29 analysts is for revenues of ₹258.8b in 2026. This would reflect a modest 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 7.1% to ₹45.42 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹251.4b and earnings per share (EPS) of ₹45.05 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

View our latest analysis for Zydus Lifesciences

Even though revenue forecasts increased, there was no change to the consensus price target of ₹1,016, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic Zydus Lifesciences analyst has a price target of ₹1,255 per share, while the most pessimistic values it at ₹850. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Zydus Lifesciences shareholders.

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 2026 brings more of the same, according to the analysts, with revenue forecast to display 12% 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 10% per year. So although Zydus Lifesciences is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹1,016, 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 forecasts for Zydus Lifesciences going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Zydus Lifesciences (1 makes us a bit uncomfortable!) that you need to be mindful of.

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.