MPS reports strong Q2 FY'26 revenue and profit growth

MPS Limited reported a strong financial performance for Q2 FY'26, with revenue increasing by 9.42% year-on-year to INR 194.44 crores. This growth was primarily fueled by healthy contributions from the research and education verticals. EBITDA improved by 13.03% year-on-year to INR 60.47 crores, resulting in EBITDA margins of 31.10%, a 99 basis points increase from the previous year. Profit before tax (PBT) saw a sharp rise of 43.92%, aided by operational efficiency gains and a net exceptional income of INR 12.81 crores.

The research solutions segment remained dominant, contributing 61.5% of total revenue in Q2 FY'26, achieving an 18.32% year-on-year organic growth excluding AJE. The education practice demonstrated remarkable growth, with revenue up 52.4% and EBITDA margin expanding from 28.8% to 35.6% year-on-year, largely attributed to AI-powered workflows. DSO improved materially from 45 days in Q1 FY'26 to 37 days in Q2, reflecting enhanced collection efficiency.

In contrast, the corporate learning business segment experienced a softer year, with its share of total MPS revenue decreasing from 17.2% in Q2 FY'25 to 11.3% in Q2 FY'26. MPS completed the acquisition of the remaining 35% stake in Liberate Group, making it a wholly-owned subsidiary, and is integrating MPS Europa AG to strengthen its corporate learning offerings.