Revenue Beat: Netweb Technologies India Limited Exceeded Revenue Forecasts By 18% And Analysts Are Updating Their Estimates

Last week saw the newest quarterly earnings release from Netweb Technologies India Limited (NSE:NETWEB), an important milestone in the company's journey to build a stronger business. It was a mildly positive result, with revenues exceeding expectations at ₹2.5b, while statutory earnings per share (EPS) of ₹13.88 were in line with analyst forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Netweb Technologies India

Taking into account the latest results, the consensus forecast from Netweb Technologies India's twin analysts is for revenues of ₹10.4b in 2025. This reflects a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 13% to ₹19.40. In the lead-up to this report, the analysts had been modelling revenues of ₹10.7b and earnings per share (EPS) of ₹20.70 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of ₹2,783, suggesting the downgrades are not expected to have a long-term impact on Netweb Technologies India's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Netweb Technologies India's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 28% growth on an annualised basis. This is compared to a historical growth rate of 81% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. So it's pretty clear that, while Netweb Technologies India's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Netweb Technologies India. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Netweb Technologies India has 1 warning sign we think 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.