These Analysts Just Made A Substantial Downgrade To Their Cyient DLM Limited (NSE:CYIENTDLM) EPS Forecasts

One thing we could say about the analysts on Cyient DLM Limited (NSE:CYIENTDLM) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, Cyient DLM's five analysts are now forecasting revenues of ₹20b in 2026. This would be a huge 52% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 77% to ₹14.98. Prior to this update, the analysts had been forecasting revenues of ₹23b and earnings per share (EPS) of ₹20.25 in 2026. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

View our latest analysis for Cyient DLM

The consensus price target fell 16% to ₹689, with the weaker earnings outlook clearly leading analyst valuation estimates.

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 analysts are definitely expecting Cyient DLM's growth to accelerate, with the forecast 40% annualised growth to the end of 2026 ranking favourably alongside historical growth of 33% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 25% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cyient DLM is expected to grow much faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Cyient DLM. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Cyient DLM going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.