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

L&T Technology Services Limited (NSE:LTTS) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of ₹26b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.7% to hit ₹30.12 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 L&T Technology Services

Taking into account the latest results, the current consensus from L&T Technology Services' 30 analysts is for revenues of ₹105.2b in 2025. This would reflect a credible 5.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 2.1% to ₹126. Before this earnings report, the analysts had been forecasting revenues of ₹105.1b and earnings per share (EPS) of ₹128 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of ₹5,092, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. 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 ₹3,460 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that L&T Technology Services is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that L&T Technology Services' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At Simply Wall St, we have a full range of analyst estimates for L&T Technology Services going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - L&T Technology Services has 2 warning signs we think 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.