L&T Technology Services Limited (NSE:LTTS) Just Reported Earnings, And Analysts Cut Their Target Price

Last week, you might have seen that L&T Technology Services Limited (NSE:LTTS) released its yearly result to the market. The early response was not positive, with shares down 8.7% to ₹4,778 in the past week. It was a credible result overall, with revenues of ₹96b and statutory earnings per share of ₹123 both in line with analyst estimates, showing that L&T Technology Services is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for L&T Technology Services

Taking into account the latest results, the most recent consensus for L&T Technology Services from 26 analysts is for revenues of ₹106.4b in 2025. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 5.4% to ₹130. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹109.5b and earnings per share (EPS) of ₹144 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The consensus price target fell 6.7% to ₹4,593, with the weaker earnings outlook clearly leading valuation estimates. 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. There are some variant perceptions on L&T Technology Services, with the most bullish analyst valuing it at ₹6,750 and the most bearish at ₹3,280 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 2025 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 12% 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 13% per year. So it's pretty clear that L&T Technology Services is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for L&T Technology Services. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 estimates - from multiple L&T Technology Services analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for L&T Technology Services that you need to be mindful 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.