Earnings Report: IIFL Finance Limited Missed Revenue Estimates By 7.3%

It's been a mediocre week for IIFL Finance Limited (NSE:IIFL) shareholders, with the stock dropping 14% to ₹314 in the week since its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹15b, statutory earnings were in line with expectations, at ₹45.71 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for IIFL Finance

Following the latest results, IIFL Finance's five analysts are now forecasting revenues of ₹78.8b in 2026. This would be a substantial 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 291% to ₹50.21. In the lead-up to this report, the analysts had been modelling revenues of ₹79.6b and earnings per share (EPS) of ₹51.87 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 13% to ₹463, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on IIFL Finance, with the most bullish analyst valuing it at ₹560 and the most bearish at ₹415 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 12% annually. So although IIFL Finance is expected to maintain its revenue growth rate, it's definitely expected 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of IIFL Finance's future valuation.

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 forecasts for IIFL Finance going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for IIFL Finance you should be aware of, and 1 of them is a bit concerning.

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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.