Analysts Are Updating Their Cyient Limited (NSE:CYIENT) Estimates After Its First-Quarter Results

Cyient Limited (NSE:CYIENT) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to ₹1,243 in the week after its latest quarterly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.9%to hit ₹17b. 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. 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 consensus forecast from Cyient's 21 analysts is for revenues of ₹76.1b in 2026. This reflects an okay 2.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.6% to ₹60.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹76.5b and earnings per share (EPS) of ₹62.61 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for Cyient

The consensus price target held steady at ₹1,377, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Cyient analyst has a price target of ₹2,197 per share, while the most pessimistic values it at ₹1,050. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that Cyient's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.8% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Cyient is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cyient's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹1,377, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Cyient going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Cyient that you need to be mindful 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.