MPSLTD - MPS

📊 NSE: MPSLTD 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/14/2025 10:02

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 consolidated revenue grew 6.22% YoY to INR 38,072 lakh. Research Solutions achieved 18.32% YoY organic growth in Q2 FY26, contributing 61.5% of total revenue. Education Solutions showed strong growth, while Corporate Learning contribution moderated.

Geographic Revenue Split

Not disclosed in available documents, though the company maintains global operations with leadership in Switzerland and Singapore.

Profitability Margins

PAT margin for H1 FY26 was 24.49%, up from 19.07% in H1 FY25. PBT margin expanded to 32.55% from 25.92% YoY, aided by higher operating leverage and exceptional income.

EBITDA Margin

EBITDA margin for H1 FY26 expanded by 271 bps YoY to 29.09%. Q2 FY26 EBITDA margin stood at 31.10%, a 99 bps YoY increase.

Capital Expenditure

The company has an enabling resolution for equity financing to deploy approximately INR 600 Cr for back-to-back acquisitions to reach its Vision 2027 revenue target of INR 1,500 Cr.

Credit Rating & Borrowing

The company maintains a debt-free balance sheet with zero debt as of 30 September 2025.

⚙️ Operational Drivers

Raw Materials

As a service-based business, primary costs are personnel-related; headcount stood at 3,071 as of H1 FY26, an 11.51% increase YoY.

Import Sources

Not applicable for service-based business.

Capacity Expansion

Current capacity is driven by a global workforce of 3,071 employees. Expansion is planned through a robust M&A pipeline of 25-35 active targets.

Raw Material Costs

Not applicable; however, operational efficiency gains and cost management initiatives improved EBITDA by 17.14% YoY to INR 11,076 lakh in H1 FY26.

Manufacturing Efficiency

Operational efficiency gains contributed to a 43.92% increase in Q2 FY26 performance.

📈 Strategic Growth

Expected Growth Rate

25-30%

Growth Strategy

The company aims to reach INR 1,500 Cr in revenue by FY27/28 through a combination of organic growth in Research Solutions (18.32% current organic growth) and an aggressive M&A strategy involving 5 back-to-back deals supported by an INR 600 Cr equity financing resolution. Strategic focus includes high-value opportunities like Experience Centers, with one project value recently scaling from $850,000 to $1.1 million.

Products & Services

Research Solutions, Education Solutions, Corporate Learning services, and Experience Centers.

Brand Portfolio

MPS Limited, MPS Interactive Systems Limited (MPSi).

New Products/Services

Expansion of Experience Centers (e.g., a $1.1 million project) and scaling strategic engagements in Research and Education segments.

Market Expansion

Targeting global markets through integrated leadership and specialist capabilities, with a focus on non-STAR clients.

Market Share & Ranking

Research Solutions maintains a dominant position in the portfolio, contributing 61.5% of total revenue.

🌍 External Factors

Industry Trends

The industry is seeing strong growth in Research and Education segments, while Corporate Learning has moderated. MPS is positioning itself as a cost-efficient global delivery partner with integrated specialist capabilities.

Competitive Landscape

The company competes in the global research, education, and corporate learning sectors, focusing on organic growth and aggressive M&A to gain market share.

Competitive Moat

Moat is built on a dominant position in Research Solutions (61.5% revenue share) and a consolidated, cost-efficient global delivery model that focuses on high-value, repeatable opportunities.

Macro Economic Sensitivity

Sensitivity to general regulatory and economic conditions affecting the industry.

Consumer Behavior

Shift toward high-value strategic engagements and experience-based learning solutions.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 110 (Consolidated Financial Statements), Ind AS 108 (Operating Segments), and Section 133 of the Companies Act, 2013.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 24.7% based on PAT of INR 7,712 lakh and PBT of INR 10,251 lakh.

Legal Contingencies

No instances of significant fraud reported; unmodified review reports issued by statutory auditors Walker Chandiok & Co LLP.

⚠️ Risk Analysis

Key Uncertainties

Materialization of unknown risks or inaccurate underlying assumptions in the M&A strategy could impact the Vision 2027 revenue target of INR 1,500 Cr.