₹2,552: That's What Analysts Think TeamLease Services Limited (NSE:TEAMLEASE) Is Worth After Its Latest Results

Investors in TeamLease Services Limited (NSE:TEAMLEASE) had a good week, as its shares rose 2.7% to close at ₹2,097 following the release of its annual results. Revenues of ₹112b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹64.86, missing estimates by 3.1%. 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 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 current consensus from TeamLease Services' twelve analysts is for revenues of ₹128.9b in 2026. This would reflect a decent 15% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 31% to ₹84.90. Before this earnings report, the analysts had been forecasting revenues of ₹131.8b and earnings per share (EPS) of ₹94.93 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

View our latest analysis for TeamLease Services

The consensus price target fell 15% to ₹2,552, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic TeamLease Services analyst has a price target of ₹3,827 per share, while the most pessimistic values it at ₹2,000. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. It's clear that while TeamLease Services' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of TeamLease Services' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on TeamLease Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TeamLease Services analysts - going out to 2028, and you can see them free on our platform here.

We also provide an overview of the TeamLease Services Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.