NIIT Limited Just Recorded A 8.4% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in NIIT Limited (NSE:NIITLTD) had a good week, as its shares rose 7.9% to close at ₹139 following the release of its yearly results. The result was positive overall - although revenues of ₹3.6b were in line with what the analyst predicted, NIIT surprised by delivering a statutory profit of ₹3.36 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on NIIT after the latest results.

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Taking into account the latest results, the consensus forecast from NIIT's one analyst is for revenues of ₹4.46b in 2026. This reflects a huge 25% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 22% to ₹4.30. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹4.34b and earnings per share (EPS) of ₹5.10 in 2026. So it's pretty clear the analyst has mixed opinions on NIIT after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

Check out our latest analysis for NIIT

The analyst also upgraded NIIT's price target 15% to ₹150, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 25% annualised growth until the end of 2026. If achieved, this would be a much better result than the 22% 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 10.0% annually. So it looks like NIIT is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for NIIT going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for NIIT that you need to take into consideration.

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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.