TeamLease Services Limited (NSE:TEAMLEASE) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

It's been a good week for TeamLease Services Limited (NSE:TEAMLEASE) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.0% to ₹1,729. Revenues of ₹30b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹16.41, missing estimates by 2.7%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from TeamLease Services' 13 analysts is for revenues of ₹124.0b in 2026. This reflects a modest 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 13% to ₹79.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹124.3b and earnings per share (EPS) of ₹78.76 in 2026. 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.

View our latest analysis for TeamLease Services

The analysts reconfirmed their price target of ₹2,322, showing that the business is executing well and in line with expectations. 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 TeamLease Services analyst has a price target of ₹3,630 per share, while the most pessimistic values it at ₹1,850. 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.

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 TeamLease 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 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. Factoring in the forecast slowdown in growth, it looks like TeamLease 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹2,322, 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 estimates - from multiple TeamLease Services analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with TeamLease Services .

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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.