Analysts Have Made A Financial Statement On IIFL Finance Limited's (NSE:IIFL) First-Quarter Report

It's been a mediocre week for IIFL Finance Limited (NSE:IIFL) shareholders, with the stock dropping 17% to ₹427 in the week since its latest quarterly results. Revenues came in 4.6% below expectations, at ₹17b. Statutory earnings per share were relatively better off, with a per-share profit of ₹8.73 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from IIFL Finance's three analysts is for revenues of ₹72.7b in 2026. This would reflect a major 27% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 335% to ₹33.20. Before this earnings report, the analysts had been forecasting revenues of ₹72.0b and earnings per share (EPS) of ₹35.99 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for IIFL Finance

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹529, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 IIFL Finance analyst has a price target of ₹550 per share, while the most pessimistic values it at ₹465. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting IIFL Finance's growth to accelerate, with the forecast 37% annualised growth to the end of 2026 ranking favourably alongside historical growth of 18% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect IIFL Finance to grow faster than the wider industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for IIFL Finance going out to 2028, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 3 warning signs for IIFL Finance (of which 1 shouldn't be ignored!) 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.