MPS Corporate Learning EBITDA nearly doubles in Q2 FY27

MPS Limited’s Corporate Learning segment nearly doubled earnings before interest, tax, depreciation and amortisation (EBITDA) in Q2 FY27, rising 98.14% year on year to Rs 6.38 crore as revenue increased 17.01% to Rs 25.79 crore and headcount fell 19.05% to 136. Its EBITDA margin rose 10.13 percentage points to 24.74%.

What drove MPS Corporate Learning’s Q2 FY27 margin expansion?

MPS Corporate Learning’s Q2 FY27 margin expansion reflected EBITDA growth that outpaced revenue growth. Revenue rose 17.01% to Rs 25.79 crore from Rs 22.04 crore in Q2 FY26, while segment EBITDA increased 98.14% to Rs 6.38 crore from Rs 3.22 crore. EBITDA margin consequently reached 24.74%, compared with 14.61% a year earlier.

MPS Corporate Learning employed 136 people in Q2 FY27, compared with 168 in Q2 FY26, a reduction of 32 people or 19.05%. Management described the leaner base as unlocking operating leverage, linking the smaller workforce with the gap between 17.01% revenue growth and 98.14% EBITDA growth.

MPS Corporate Learning also reported new logos in Australia across superannuation, local government and vocational education during Q2 FY27. Management described these as artificial intelligence (AI) and technology-led engagements, but the presentation does not disclose their individual contract values, revenue contribution or duration.

How did MPS Corporate Learning perform in H1 FY27?

MPS Corporate Learning reported H1 FY27 revenue of Rs 53.39 crore and segment EBITDA of Rs 13.37 crore, against Rs 47.86 crore and Rs 7.57 crore, respectively, in H1 FY26. Revenue rose 11.55%, while EBITDA increased 76.62%, taking the segment EBITDA margin to 25.04% from 15.82%.

MPS Corporate Learning’s H1 FY27 margin improvement was 9.22 percentage points, slightly below the 10.13-percentage-point Q2 FY27 increase. The H1 margin of 25.04% was, however, 0.30 percentage points above the Q2 margin of 24.74%, while H1 EBITDA growth of 76.62% was below Q2 growth of 98.14%.

MPS Corporate Learning reported headcount of 136 for both Q2 FY27 and H1 FY27, compared with 168 in the corresponding prior-year disclosures. Management said the 19.05% reduction was a large part of the H1 FY27 margin expansion, although it did not specify whether the change reflected restructuring, attrition, automation or delivery mix.

How large was MPS Corporate Learning within the group revenue mix?

MPS Corporate Learning accounted for 11.5% of group revenue in Q2 FY27, up from 11.3% in Q2 FY26. Its quarterly revenue of Rs 25.79 crore was below Research’s 57.9% revenue share and Education’s 30.6% share, making Corporate Learning the smallest of the three disclosed operating segments by revenue mix.

MPS Corporate Learning’s 0.2-percentage-point share increase occurred as Education’s contribution rose to 30.6% from 27.2%, while Research’s share fell to 57.9% from 61.5%. Research still grew reported revenue 8.56% year on year, showing that the revenue-mix movement reflected faster expansion in Education and Corporate Learning rather than a reported decline in Research revenue.

At group level, H1 FY27 revenue was Rs 448.53 crore, up 17.81% from Rs 380.72 crore, while EBITDA rose 39.03% to Rs 153.99 crore. The group EBITDA margin expanded 5.24 percentage points to 34.33%; MPS Corporate Learning’s 9.22-percentage-point H1 margin increase was larger, but its 25.04% segment margin remained below the group figure.

What does MPS Corporate Learning plan for the second half of FY27?

MPS Corporate Learning plans to grow on its rebuilt margin base in the second half of FY27, according to management’s stated priorities. The presentation provides no separate second-half revenue, EBITDA or margin target for the segment, so progress will be measured against the H1 FY27 revenue of Rs 53.39 crore and 25.04% EBITDA margin.

MPS Corporate Learning’s disclosed Q2 FY27 pipeline evidence consists of new Australian logos in superannuation, local government and vocational education, including AI and technology-led engagements. The presentation does not identify customers or quantify bookings, leaving the timing and scale of any resulting revenue undisclosed.

The group has guided for FY27 EBITDA of more than Rs 300 crore after reporting Rs 153.99 crore in H1 FY27. Management said the first-half outcome was ahead of a straight-line path to that guidance, but it did not allocate the full-year EBITDA objective among Corporate Learning, Research and Education.

Conclusion

MPS Corporate Learning converted an 11.55% H1 FY27 revenue increase into a 76.62% increase in segment EBITDA, while headcount declined by 32 people to 136. The resulting H1 margin of 25.04% was 9.22 percentage points above H1 FY26, following a 98.14% rise in Q2 EBITDA to Rs 6.38 crore.

The next measure to watch is whether management’s plan to grow Corporate Learning on its rebuilt margin base can sustain revenue growth alongside the 136-person workforce. The group’s FY27 EBITDA guidance exceeds Rs 300 crore, but no segment-level target is disclosed, so future results will show the contribution from the Australian AI and technology-led engagements.