Synopsis:
A leading education and research solutions company posted robust quarterly earnings, with net profit soaring 57 percent YoY, driven by margin expansion, strong research growth, and accelerating education segment traction. Do you hold?
A leading education and research solutions stock gained in Wednesday’s trade after posting strong sequential and annual growth in profitability for the September quarter, driven by expanding education solutions, research traction, and margin improvement.
MPS Ltd., with a market capitalisation of Rs. 4,079.65 crore, opened at Rs. 2,245, touched an intraday high of Rs. 2,454.90, and had a previous close of Rs. 2,247.30, marking a gain of 9.3 percent at the day’s peak. Mukul Mahavir Agrawal holds a 4.46 percent stake in the company.
Financial Snapshot – Q2FY26
Quarter-on-Quarter (QoQ): Revenue increased from Rs. 186 crore in Q1FY26 to Rs. 194 crore in Q2FY26, reflecting a rise of 4.3 percent. Operating profit grew from Rs. 50 crore to Rs. 60 crore, up 20 percent, while operating margin expanded from 27 percent to 31 percent. Profit before tax rose from Rs. 50 crore to Rs. 69 crore, an increase of 38 percent, and net profit surged from Rs. 35 crore to Rs. 55 crore, up 57.1 percent. Earnings per share increased from Rs. 20.60 to Rs. 32.41, marking a 57.3 percent rise over the previous quarter.
Year-on-Year (YoY): Compared to Q2FY25, revenue advanced from Rs. 178 crore to Rs. 194 crore, up 9 percent. Operating profit increased from Rs. 54 crore to Rs. 60 crore, up 11.1 percent, with operating margin expanding from 30 percent to 31 percent. Profit before tax rose from Rs. 48 crore to Rs. 69 crore, a 43.8 percent increase, while net profit climbed from Rs. 35 crore to Rs. 55 crore, a 57.1 percent rise. EPS increased from Rs. 20.60 to Rs. 32.41, underlining strong earnings momentum.
EBITDA margin expanded to 31.10 percent (+99 bps YoY), and net exceptional income of Rs. 12.81 crore contributed to profitability. The company’s accelerating operating cash flows and debt-free balance sheet were supported by Rs. 117 crore in cash reserves as of September 30, 2025.
Revenue Mix and Operational Highlights
MPS continues to derive the majority of its revenue from research solutions, which contributed 61.5 percent of total revenue in Q2FY26. Education solutions have expanded to 27.2 percent from 19.5 percent in Q2FY25, reflecting a strong order pipeline and expanding customer base. The corporate learning segment moderated to 11.3 percent from 17.2 percent in Q2FY25, in line with ongoing corporate restructuring.
Geographically, North America contributed 49 percent of revenue, UK/Europe 34 percent, and the rest of the world 17 percent. Improved collection efficiency reduced DSO from 45 days in Q1FY26 to 37 days in Q2FY26, reflecting tighter working capital management. Growth from non-STAR clients continues to be a strategic focus.
About the Company
MPS Ltd. provides platforms and services for content creation, full-service production, and distribution to leading global publishers, learning companies, corporate institutions, libraries, and content aggregators. The company operates across research, education, and corporate learning segments, offering a diversified and resilient revenue portfolio.
Written by Manan Gangwar
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