NIIT Limited Just Missed Earnings - But Analysts Have Updated Their Models

The analyst might have been a bit too bullish on NIIT Limited (NSE:NIITLTD), given that the company fell short of expectations when it released its quarterly results last week. Unfortunately, NIIT delivered a serious earnings miss. Revenues of ₹841m were 11% below expectations, and statutory earnings per share of ₹0.31 missed estimates by 38%. The analyst 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 estimate to see what could be in store for next year.

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Taking into account the latest results, the current consensus from NIIT's lone analyst is for revenues of ₹4.11b in 2026. This would reflect a notable 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 29% to ₹4.20. Before this earnings report, the analyst had been forecasting revenues of ₹4.46b and earnings per share (EPS) of ₹4.30 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

See our latest analysis for NIIT

It'll come as no surprise then, to learn that the analyst has cut their price target 13% to ₹130.

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. One thing stands out from these estimates, which is that NIIT is forecast to grow faster in the future than it has in the past, with revenues expected to display 20% annualised growth until the end of 2026. If achieved, this would be a much better result than the 25% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.6% annually. So it looks like NIIT is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for NIIT. They also downgraded NIIT's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of NIIT's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on NIIT. Long-term earnings power is much more important than next year's profits. We have analyst estimates for NIIT going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for NIIT you should know about.

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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.