MPS Limited: FY26 Ends with Record EPS, and FY27 Targets INR 300 Crore Plus EBITDA

MPS Limited ended FY26 with its strongest profitability so far, backed by margin expansion and a sharp Q4 finish. For FY26, reported revenue came in at INR 768.37 crore, up 5.71% year on year. EBITDA grew faster at 11.83% to INR 235.85 crore, taking the EBITDA margin to 30.69%. Profit after tax increased 16.32% to INR 173.22 crore, and basic EPS rose to INR 102.11, the highest in the company’s history.

Q4 FY26 was the strongest quarter of the year. Reported revenue grew 12.66% year on year to INR 205.16 crore. EBITDA rose 20.53% to INR 67.51 crore and margin expanded to 32.90%. PAT was largely flat year on year at INR 47.04 crore but increased 32.51% sequentially, reflecting a better operating run-rate into FY27.

Management’s messaging was consistent across the investor presentation and concall: MPS is positioning itself as an AI-first knowledge solutions company where AI is already deployed inside production workflows, not held out as a pilot concept. The company framed its opportunity as sitting at the intersection of education, research, and corporate learning, with emphasis on trusted outputs in high-stakes workflows.

Q4 FY26: Operating leverage shows up in the numbers

The Q4 table in the presentation highlights the shape of the quarter. Revenue grew 12.66% year on year while EBITDA grew 20.53%, indicating operating leverage. EBITDA margin improved by 214 basis points to 32.90%. PAT margin declined year on year to 22.93% from 25.85% but improved sequentially.

A key operational detail was the disclosure of liquidity and leverage. As of 31 March 2026, cash and cash equivalents stood at INR 113.75 crore and borrowings were INR 40.25 crore, primarily related to the Unbound Medicine acquisition facility.

Segment performance: Research anchors, Education scales, Corporate Learning resets

The portfolio remains anchored by Research, but Education is clearly emerging as a larger second pillar. In Q4 FY26, Research contributed 58.3% of revenue, Education 29.3%, and Corporate Learning 12.4%. The full-year mix was similar, with Research at 60.3% of FY26 revenue, Education at 27.2%, and Corporate Learning at 12.5%.

Research Solutions delivered high margins, with Q4 EBITDA margin at 41.59%. Reported Q4 Research revenue was INR 119.55 crore, up 7.55% year on year. Importantly, the company repeatedly highlighted that excluding AJE, the Research segment grew 23.04% year on year in Q4, showing a stronger core growth profile than the reported number.

Education Solutions reported Q4 revenue of INR 60.13 crore, up 30.55% year on year and 35.64% sequentially. Q4 EBITDA margin in Education was 38.43%, lower than the prior year but still high. Management attributed part of the scale-up to the Unbound Medicine acquisition, which closed on 9 February 2026.

Corporate Learning was the weakest segment in FY26 in revenue terms. Q4 revenue was INR 25.48 crore, up 2.37% year on year and 12.64% sequentially. EBITDA improved sequentially by 55.45% to INR 6.70 crore, and management described Q4 as an inflection after a deliberate reset during the year.

AI at MPS: Management claims are tied to specific products

The company’s core narrative is that AI is already commercialised through products and workflow layers.

In Research, management described four integrated layers: integrity and verification, AI author services, a pre-acceptance office, and the platform stack. The presentation and call referenced DigiCorePro and Research Integrity Check for integrity workflows, AJE Digital and Rubriq for author services, and platforms such as HighWire and Think365.

In Education, Unbound Medicine was positioned as a platform foothold in medicine and nursing, with AI embedded in its applications through Unbound Intelligence Assist, which management said was live in Central and Nursing Central from day 1 post acquisition. Separately, Education also cited accessibility and media asset development at scale, with more than 30 million auto-generated accessible media assets delivered annually.

In Corporate Learning, the product narrative centred on BridgeAI for multilingual translation, and AI roleplays and simulations as higher-value deliverables.

Unbound Medicine: contribution disclosed, and margin expansion targeted

Management provided limited but useful disclosure on Unbound’s initial contribution. Since the acquisition was consolidated for roughly 50 days, Unbound revenue in Q4 was stated as INR 11 crore to INR 12 crore, with EBITDA margin around 18% to 19%.

For FY27, management guided to monthly revenue of USD 0.75 to USD 0.95 million, depending on seasonality. The profitability plan is to start around mid-teens EBITDA margin and exit FY27 at 25% to 30%. This is one of the clearer quantified operational targets disclosed on the call.

FY27: INR 300 crore plus EBITDA guidance sets the near-term marker

The company guided that it expects to comfortably cross INR 300 crore in EBITDA in FY27, based on current run rate and segment operating plans. Management also indicated an EBITDA margin band of 30% to 35% for FY27.

The call also reiterated that the company’s FY28 top-line aspiration of around INR 1,500 crore is still in line of sight, with tighter guidance expected around the end of Q3 or Q4.

Diversification and concentration: better geography mix, but clients remain concentrated

Geographically, FY26 revenue was split as North America 50%, UK and Europe 33%, and Rest of the World 17%. The company also reported DSO of 51 days for FY26, marginally better than FY25. The number of clients billed rose to 1,101 in FY26 from 738 in FY25, which management attributed partly to the Unbound acquisition adding a long tail of institutional customers.

Client concentration is still high, with the top 5 contributing 47% of FY26 revenue and the top 10 contributing 60%. Management argued the quality of revenue improves with Unbound because it brings a broader base of smaller recurring accounts with high renewal economics, even though average revenue per client mathematically declines.

Takeaways

FY26 shows a familiar MPS pattern: steady top-line growth combined with faster profit growth and a strong margin profile. Research remains the high-margin anchor, Education is scaling into a genuine second pillar, and Corporate Learning is in a restructuring and repositioning phase with early signs of sequential recovery.

The FY27 marker is clear. Management expects INR 300 crore plus EBITDA and indicated a 30% to 35% margin band. The ability to sustain Q4 operating leverage, integrate Unbound through a full year, and keep Corporate Learning on its improved exit run-rate will likely define how the FY27 narrative plays out.