KPIT Technologies Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders in KPIT Technologies Limited (NSE:KPITTECH) had a terrible week, as shares crashed 23% to ₹1,374 in the week since its latest second-quarter results. It looks like a credible result overall - although revenues of ₹15b were in line with what the analysts predicted, KPIT Technologies surprised by delivering a statutory profit of ₹7.45 per share, a notable 10% above expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for KPIT Technologies

Taking into account the latest results, the consensus forecast from KPIT Technologies' 18 analysts is for revenues of ₹58.7b in 2025. This reflects an okay 7.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.2% to ₹29.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹59.5b and earnings per share (EPS) of ₹29.19 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 8.1% to ₹1,802, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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. There are some variant perceptions on KPIT Technologies, with the most bullish analyst valuing it at ₹2,216 and the most bearish at ₹1,150 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 KPIT Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Compare this to the 71 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it looks like KPIT Technologies is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 KPIT Technologies going out to 2027, 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 2 warning signs for KPIT Technologies 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.