MPSLTD Q3 FY26 earnings call.
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Revenue
₹182.5 Cr
verified against source
Revenue YoY
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EBITDA
Pending
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What the record says.
MPS Limited reported a mixed Q3 FY26 with revenue of INR 182.5 crore and EBITDA margin of 31.6%, marking a challenging quarter after two quarters of strong momentum. Education Solutions delivered 11.3% YoY growth with 40.8% EBITDA margin, while Research Solutions achieved 16.2% organic growth (excluding AJ) and contributed 61.1% of 9-month revenue. However, Corporate Learning saw significant pullback as management deliberately moved away from low-margin legacy work. The Unbound Medicine acquisition ($16.5M) for medical/nursing education content represents a strategic expansion into recurring-revenue B2B subscriptions. Management expects to surpass INR 100 EPS for FY26 despite a Q3 labor code headwind of ~3.5 rupees/share. AI is being viewed as an opportunity—consolidating fragmented markets in MPS's favor—though AJ's B2C revenue remains under pressure. The company has initiated a radical cost optimization drive to prepare for FY27, which leadership characterizes as an "exceptional year." Key risks include AJ's ongoing decline, uncertain enterprise demand in corporate learning, and potential client concentration issues given 400+ customer base.
Colored figures show movement against the previous available record.
Guidance to track
- Management stated MPS is comfortably placed to surpass INR 100 EPS in FY26, describing it as a conservative target. Note: Q3 labor code impact creates ~3.5 rupee headwind per share, and Q4 is expected to outperform Q3 benchmarks.
- Research Solutions AJ business expected to show stable revenue in FY27 with new B2B publisher partnerships, editorial services expansion, and competitive pricing improvements on B2C services driving order value recovery.
- Corporate Learning segment expected to return to growth in FY27 following Q3 restructuring, cost optimization, pivot to managed learning services, and AI-enabled solutions focus.
- Unbound Medicine acquisition expected to close by February 10, 2026 for $16.5M. Revenue will be classified primarily under Education segment with some Research; B2B subscription model with high recurring revenue and institutional stickiness.
Risks flagged
- AJ business is experiencing rapid decline due to AI disruption in B2C market. While management expects stabilization in FY27 through B2B pivot and new services, the timeline and magnitude of recovery remains uncertain.
- Analyst challenged that corporate learning revenue has fallen below levels from 3 years ago despite Liberate acquisition. Management attributed this to strategic restructuring but acknowledged financial targets not yet achieved.
- Previous guidance indicated margin expansion in H2, but Q3 margin of 31.6% shows no improvement. Management did not explicitly address this miss, suggesting operational challenges or timing issues.
- US government funding cuts to universities over the past year could impact research spending. Management claims no direct impact on MPS given geographic diversification and 400+ customer base, but acknowledged monitoring global spends.
Key quotes
- We crushed non-core nice to have expenses. We've executed these changes quickly to further expand our margins and prepare our balance sheet.
- AI more as an opportunity... what it is doing is it is consolidating a highly fragmented market and in the benefit of scale players like MPS.
- We're probably the only publicly listed independently owned company of our size that has the capabilities and demonstrated ability to service the entire value chain for our clients end to end.
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