MPS billed clients rise 90% to 933, reducing concentration

MPS Limited billed 933 clients excluding business-to-consumer (B2C) customers in H1 FY27, up 90% from 490 in H1 FY26, while the top five clients' revenue contribution declined to 46% from 49%. Management attributed the broader billed base to Unbound Medicine's institutional subscriber base, alongside H1 revenue of Rs 448.53 crore.

How much did MPS's billed client base grow in H1 FY27?

MPS billed 933 clients in H1 FY27, 443 more than the 490 billed in H1 FY26, representing a 90% year-on-year increase. The company defines this measure as excluding B2C customers, meaning it does not represent its full end-user customer base. Management said Unbound Medicine's institutional subscriber base drove the expansion.

The H1 FY27 count did not more than double from the prior-year level, because twice the H1 FY26 count of 490 would equal 980 clients. The presentation also reported 839 clients billed in Q2 FY27, compared with 422 in Q2 FY26, and 841 in Q1 FY27. The quarterly figures show that the billed base remained above 800 in each quarter of H1 FY27, but quarterly and half-year client counts cannot be added together.

MPS reported H1 FY27 revenue of Rs 448.53 crore, up 17.81% from Rs 380.72 crore in H1 FY26, a slower rate than the 90% rise in billed clients. This comparison indicates that the expanded client count changed the composition of the reported customer base, although the presentation does not disclose revenue per client, the number of Unbound Medicine subscribers, or individual contract values.

Did MPS reduce customer concentration in H1 FY27?

MPS reduced the reported revenue contribution of its top five, top 10 and top 15 clients in H1 FY27. The top five accounted for 46% of revenue, down from 49% in H1 FY26; the top 10 accounted for 59%, down from 61%; and the top 15 accounted for 66%, down from 68%.

The largest movement was in the top-five group, whose revenue share declined by 3 percentage points as the billed-client count increased by 443. The top 15 clients nonetheless generated 66% of H1 FY27 revenue. MPS does not identify these clients or provide the contribution of any individual account.

The second-quarter data showed a similar shift. In Q2 FY27, the top five clients contributed 46% of revenue versus 51% in Q2 FY26, while the top 10 contributed 60% versus 63% and the top 15 contributed 66% versus 69%. The 46% top-five share in both Q2 and H1 FY27 places the second-quarter concentration outcome in line with the first-half result.

How did Unbound Medicine alter MPS revenue mix and margins?

Unbound Medicine contributed Rs 41.64 crore of revenue and Rs 7.48 crore of earnings before interest, tax, depreciation and amortisation (EBITDA) in H1 FY27, at an EBITDA margin of 17.96%. MPS described its institutional subscriber base as the driver of the increase to 933 billed clients and said it added recurring, high-renewal healthcare revenue.

Education, the segment containing Unbound Medicine, generated Rs 142.09 crore of H1 FY27 revenue, up 36.05% from Rs 104.44 crore in H1 FY26. Segment EBITDA increased 14.45% to Rs 46.64 crore, while EBITDA margin declined to 32.82% from 39.02%. MPS said Unbound Medicine's royalty-based content model carries a lower margin than its solutions base, explaining why Education EBITDA grew more slowly than segment revenue.

In Q2 FY27, Unbound Medicine contributed Rs 21.07 crore of revenue and Rs 3.82 crore of EBITDA, with an 18.13% margin. Education's Q2 revenue rose 30.03% year on year to Rs 68.68 crore, while its EBITDA declined 6.11% to Rs 20.89 crore. The Q2 and H1 figures both show revenue growth from Unbound Medicine alongside margins below those reported for the overall Education segment.

Education represented 30.6% of MPS revenue in Q2 FY27, up from 27.2% in Q2 FY26. Research accounted for 57.9% of Q2 FY27 revenue and Corporate Learning accounted for 11.5%. Education's share therefore increased by 3.4 percentage points year on year as Unbound Medicine expanded the segment's revenue base.

Did MPS's geographic mix and collections change in H1 FY27?

MPS's H1 FY27 geographic revenue mix shifted toward Europe, while North America remained its largest market. North America accounted for 48% of revenue, down from 50% in H1 FY26; Europe accounted for 35%, up from 31%; and Rest of the World represented 17%, down from 19%.

The Q2 FY27 profile was 47% North America, 36% Europe and 17% Rest of the World, compared with 47%, 35% and 18%, respectively, in Q2 FY26. Europe gained 1 percentage point in the quarter, while North America was unchanged. The H1 comparison shows a larger 4-percentage-point increase in Europe's share and 2-percentage-point reductions in North America and Rest of the World.

Days sales outstanding (DSO), a measure of the time taken to collect receivables, stood at 38 days in H1 FY27 versus 37 days in H1 FY26. In Q2 FY27, DSO was 38 days, down from 45 days in Q1 FY27 and compared with 37 days in Q2 FY26. Management attributed the sequential decline from Q1 FY27 to enhanced collection efficiency and tighter working-capital management.

Conclusion

MPS's H1 FY27 disclosures show that its billed client base expanded by 443 to 933, while the revenue shares of the top five, top 10 and top 15 clients each declined. Management linked that shift to Unbound Medicine's institutional subscribers, whose Rs 41.64 crore H1 revenue supported Education's 36.05% growth despite a lower segment EBITDA margin.

The next disclosed markers are MPS's H2 FY27 plans to grow Unbound Medicine with hospitals and health systems and convert Education opportunities as Florida and California adoptions open. Management also plans to ramp peer-review and research-integrity mandates, with billing from November and December, while tracking toward FY27 EBITDA guidance of more than Rs 300 crore.