Zydus Lifesciences Limited Just Recorded A 12% EPS Beat: Here's What Analysts Are Forecasting Next

Zydus Lifesciences Limited (NSE:ZYDUSLIFE) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of ₹53b were in line with what the analysts predicted, Zydus Lifesciences surprised by delivering a statutory profit of ₹10.17 per share, a notable 12% above expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zydus Lifesciences after the latest results.

View our latest analysis for Zydus Lifesciences

Taking into account the latest results, the consensus forecast from Zydus Lifesciences' 31 analysts is for revenues of ₹245.2b in 2026. This reflects a meaningful 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 2.6% to ₹46.23. Before this earnings report, the analysts had been forecasting revenues of ₹243.5b and earnings per share (EPS) of ₹45.73 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,070. 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. The most optimistic Zydus Lifesciences analyst has a price target of ₹1,365 per share, while the most pessimistic values it at ₹839. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 8.1% growth on an annualised basis. That is in line with its 9.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So although Zydus Lifesciences is expected to maintain its revenue growth rate, it's forecast to grow slower than 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹1,070, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Zydus Lifesciences going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Zydus Lifesciences (1 is significant!) 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.