Here's What Analysts Are Forecasting For L&T Technology Services Limited (NSE:LTTS) After Its First-Quarter Results

The analysts might have been a bit too bullish on L&T Technology Services Limited (NSE:LTTS), given that the company fell short of expectations when it released its quarterly results last week. Results look to have been somewhat negative - revenue fell 2.7% short of analyst estimates at ₹25b, and statutory earnings of ₹29.57 per share missed forecasts by 3.7%. 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.

Check out our latest analysis for L&T Technology Services

Taking into account the latest results, the most recent consensus for L&T Technology Services from 27 analysts is for revenues of ₹104.8b in 2025. If met, it would imply a credible 6.9% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 3.6% to ₹128. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹106.2b and earnings per share (EPS) of ₹130 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹4,587. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic L&T Technology Services analyst has a price target of ₹5,950 per share, while the most pessimistic values it at ₹3,330. 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. We would highlight that L&T Technology Services' revenue growth is expected to slow, with the forecast 9.3% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% 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. The consensus price target held steady at ₹4,587, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for L&T Technology Services going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for L&T Technology Services 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com