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

Last week saw the newest quarterly earnings release from L&T Technology Services Limited (NSE:LTTS), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of ₹29b were in line with what the analysts predicted, L&T Technology Services surprised by delivering a statutory profit of ₹29.77 per share, modestly greater than expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from L&T Technology Services' 33 analysts is for revenues of ₹120.8b in 2026. This reflects a meaningful 9.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.8% to ₹130. In the lead-up to this report, the analysts had been modelling revenues of ₹122.0b and earnings per share (EPS) of ₹132 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for L&T Technology Services

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹4,581. 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. There are some variant perceptions on L&T Technology Services, with the most bullish analyst valuing it at ₹6,240 and the most bearish at ₹3,460 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that L&T Technology Services' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 67 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it looks like L&T Technology Services is forecast to grow at about the same rate as the wider industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹4,581, 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 L&T Technology Services going out to 2028, and you can see them free on our platform here.

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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.