Last week, you might have seen that Sify Technologies Limited (NASDAQ:SIFY) released its annual result to the market. The early response was not positive, with shares down 4.8% to US$1.19 in the past week. Revenues fell badly short of expectations, with revenue of ₹36b, missing analyst estimates by 22%. Following the result, the analyst has 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've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Following the latest results, Sify Technologies' solitary analyst are now forecasting revenues of ₹52.0b in 2025. This would be a major 46% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of ₹52.6b and break-even in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

The average price target fell 57% to US$3.00, withthe analyst clearly having become less optimistic about Sify Technologies'prospects following its latest earnings.

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 clear from the latest estimates that Sify Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sify Technologies is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

One Sify Technologies broker/analyst has provided estimates out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Sify Technologies (including 2 which are a bit concerning) .

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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.