Infibeam Avenues Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Infibeam Avenues Limited (NSE:INFIBEAM) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.4% to ₹23.26. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ₹11b, statutory earnings beat expectations by a notable 130%, coming in at ₹0.23 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Infibeam Avenues after the latest results.

View our latest analysis for Infibeam Avenues

Taking into account the latest results, the consensus forecast from Infibeam Avenues' two analysts is for revenues of ₹48.3b in 2026. This reflects a huge 35% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 12% to ₹0.90. Before this earnings report, the analysts had been forecasting revenues of ₹51.8b and earnings per share (EPS) of ₹0.89 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was reduced 17% to ₹27.40, with the lower revenue forecasts indicating negative sentiment towards Infibeam Avenues, even though earnings forecasts were unchanged.

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. We would highlight that Infibeam Avenues' revenue growth is expected to slow, with the forecast 27% annualised growth rate until the end of 2026 being well below the historical 38% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% per year. So it's pretty clear that, while Infibeam Avenues' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Infibeam Avenues' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Infibeam Avenues that you should be aware of.

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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.