Analysts Are Updating Their L&T Technology Services Limited (NSE:LTTS) Estimates After Its Third-Quarter Results

Investors in L&T Technology Services Limited (NSE:LTTS) had a good week, as its shares rose 8.9% to close at ₹5,374 following the release of its third-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹27b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.1% to hit ₹30.40 per share. 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 L&T Technology Services after the latest results.

See our latest analysis for L&T Technology Services

After the latest results, the 31 analysts covering L&T Technology Services are now predicting revenues of ₹125.1b in 2026. If met, this would reflect a sizeable 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 19% to ₹146. Before this earnings report, the analysts had been forecasting revenues of ₹120.0b and earnings per share (EPS) of ₹148 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of ₹5,154, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on L&T Technology Services, with the most bullish analyst valuing it at ₹6,500 and the most bearish at ₹3,570 per share. 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 L&T Technology Services shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the L&T Technology Services' past performance and to peers in the same industry. It's clear from the latest estimates that L&T Technology Services' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 14% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that L&T Technology Services is expected to grow at about the same rate as 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 ₹5,154, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on L&T Technology Services. Long-term earnings power is much more important than next year's profits. We have forecasts for L&T Technology Services 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 L&T Technology Services that you should be aware 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.