MPS FY26 results: record EBITDA ₹236 cr, PAT ₹173 cr

FY26 closes as the most profitable year

MPS said FY26 ended as the most profitable year in its history, supported by margin expansion and higher profitability across key segments. Group revenue for the year rose to ₹768 crore, up 5.7% over FY25. EBITDA increased 11.8% to ₹236 crore, and the EBITDA margin expanded to 30.7%. Profit after tax (PAT) grew 16.3% to ₹173 crore. Basic EPS came in at ₹102.1, a company record, also up 16.3% year on year. The company also flagged that exceptional items contributed positively by ₹7.64 crore in FY26.

Full-year revenue mix and organic growth commentary

Alongside consolidated growth, the company highlighted a revenue view excluding “AJE”, where FY26 revenue grew 15.4% to ₹646 crore. This was presented as a way to explain the composition of growth in the year. The commentary indicates that business performance was not uniform across all lines, with some segments delivering stronger operating leverage than others. The company’s results presentation linked the year’s outcome to improved margins and scale benefits.

Segment performance: Research Solutions

Research Solutions anchored the portfolio in Q4, contributing 58.3% of total Q4 revenue. For Q4, reported Research Solutions revenue was ₹120 crore, up 7.6% year on year. Excluding “AJE”, the organic core of Research Solutions grew 23% year on year in Q4. Q4 segment EBITDA was ₹50 crore, with a 41.6% margin.

For the full year, Research Solutions delivered ₹464 crore of revenue. The segment’s EBITDA margin expanded 330 basis points to 39.9% for FY26, as stated in the company’s update. The margin movement was positioned as a key driver of the consolidated EBITDA margin expansion.

Segment performance: Education scales up in FY26

Education was described as the segment that delivered scale in FY26. Q4 education revenue reached ₹60 crore, up 30.5% year on year. For the full year, education revenue was ₹209 crore, up 36.3%. Excluding the Unbound contribution, organic education revenue grew 28.6%.

Education EBITDA for FY26 was ₹82 crore, translating into a 39.2% margin. The company reported EBITDA growth of 42.6% year on year on a reported basis and 38.6% organically. The year’s growth and margin outcome indicate a mix of expansion and operating leverage within the education line.

Segment snapshot: Corporate Learning and other lines

The update also included a business line that reported Q4 revenue of ₹25.5 crore, up 2.4% year on year. Q4 EBITDA for this line was ₹6.7 crore at a 26.3% margin, with the company noting it as the “first positive print of the year.” For FY26, revenue for this line closed at ₹96 crore, down 16.5% versus FY25.

Separately, an earlier quarterly business update referenced Corporate Learning’s revenue share at 11.3% (Q2 FY26), down from 17.2% in Q2 FY25, indicating mix shifts during the year. That same update also mentioned the consolidation of Corporate Learning under MPS Interactive (MPSi) as a strategic initiative.

Q4 FY26: record revenue and operating leverage

Q4 was described as the strongest quarter of FY26. Consolidated revenue grew 12.7% year on year to ₹205 crore. EBITDA rose 20.5% to ₹67.5 crore, and the EBITDA margin expanded to 32.9%, which the company linked to operating leverage as revenue growth converted into margin expansion.

PAT for Q4 was about ₹47 crore, and the company highlighted sequential growth of 32.5%. Q4 EPS was ₹27.72. A separate performance note also reported Q4 net profit at ₹47.04 crore, down 0.06% year on year, despite the improvement in operating margin.

Taxes and margins: why profit was flatter year on year

Operating profit margin (excluding other income) expanded to 32.91% in Q4 FY26 from 30.76% in Q4 FY25, a 215 basis point year-on-year increase. Operating profit before depreciation, interest, and tax (excluding other income) climbed to ₹67.51 crore from ₹56.01 crore a year earlier. But PAT margin in Q4 FY26 was reported at 22.93% versus 25.85% in Q4 FY25.

The same note attributed the lower PAT margin to higher tax expenses. Tax expense in Q4 FY26 was ₹17.87 crore at an effective rate of 27.53%, compared with ₹14.83 crore and 23.96% in the prior-year quarter. This helped explain why bottom-line growth did not keep pace with the operating performance.

Balance sheet and return metrics

As of March 31, 2026, total cash and cash equivalents stood at ₹113.75 crore. Borrowings were ₹40.25 crore, linked to a facility drawn for the acquisition of Unbound Medicine. Return on capital employed (ROCE) for FY26 was 38.2%, described as broadly in line with the company’s historical capital efficiency profile even after the balance sheet impact of Unbound.

FY27 outlook signals: EBITDA expected to cross ₹300 crore

Looking ahead, the company said that based on its current run rate and operating plan, it is expected to comfortably cross ₹300 crore in EBITDA in FY27. It also stated this implies a three-year EBITDA CAGR of approximately 21% from FY24 to FY27. Separately, management commentary referenced a “Vision 2027” ambition to scale revenue from ₹500 crore to ₹1,500 crore by FY28, with 60% of the scale-up expected from acquisitions and 40% from organic growth.

Key numbers at a glance

Why FY26 matters for investors tracking MPS

FY26 combined steady top-line growth with faster EBITDA and PAT growth, driven by margin expansion. The year also showed a clearer separation between segments, with Research Solutions and Education delivering higher profitability metrics. Q4 underscored operating leverage, as margin expansion outpaced revenue growth, even though year-on-year profit growth was affected by taxes.

The FY27 EBITDA milestone of crossing ₹300 crore will be a key marker tied to the company’s stated operating plan. Investors will also likely track how acquisition-linked borrowings and the Unbound integration continue to influence cash flows, segment mix, and capital efficiency.

Conclusion

MPS ended FY26 with revenue of ₹768 crore, EBITDA of ₹236 crore, and PAT of ₹173 crore, alongside record basic EPS of ₹102.1. Q4 delivered the year’s strongest operating performance, with revenue at ₹205 crore and EBITDA margin at 32.9%. The company has indicated an expectation to cross ₹300 crore in EBITDA in FY27, based on its run rate and operating plans.