Time To Worry? Analysts Are Downgrading Their Dreamfolks Services Limited (NSE:DREAMFOLKS) Outlook

Market forces rained on the parade of Dreamfolks Services Limited (NSE:DREAMFOLKS) shareholders today, when the analysts downgraded their forecasts for this year. 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.

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After the downgrade, the consensus from Dreamfolks Services' dual analysts is for revenues of ₹8.9b in 2026, which would reflect a stressful 33% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to shrink 5.8% to ₹12.29 in the same period. Previously, the analysts had been modelling revenues of ₹13b and earnings per share (EPS) of ₹16.90 in 2026. Indeed, we can see that the analysts are a lot more bearish about Dreamfolks Services' prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Dreamfolks Services

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to ₹140.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 55% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 31% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.4% per year. It's pretty clear that Dreamfolks Services' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Dreamfolks Services' revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Dreamfolks Services.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for 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.