Intellect Design Arena Limited Just Beat EPS By 9.9%: Here's What Analysts Think Will Happen Next

A week ago, Intellect Design Arena Limited (NSE:INTELLECT) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 4.4% to hit ₹26b. Statutory earnings per share (EPS) came in at ₹23.60, some 9.9% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Intellect Design Arena's four analysts is for revenues of ₹29.9b in 2026. This would reflect a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 29% to ₹30.80. In the lead-up to this report, the analysts had been modelling revenues of ₹29.5b and earnings per share (EPS) of ₹30.17 in 2026. So the consensus seems to have become somewhat more optimistic on Intellect Design Arena's earnings potential following these results.

Check out our latest analysis for Intellect Design Arena

The consensus price target rose 7.4% to ₹965, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Intellect Design Arena, with the most bullish analyst valuing it at ₹1,058 and the most bearish at ₹880 per share. This is a very narrow spread of estimates, implying either that Intellect Design Arena is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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 16% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Intellect Design Arena is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Intellect Design Arena's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 estimates - from multiple Intellect Design Arena analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.