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Earnings Call Transcript

MPS Earnings Call Transcript: Key Takeaways

MPS delivers record Q1 FY27 results, leveraging high operating leverage and AI integration to drive EBITDA growth significantly faster than revenue.

Guidance and delivery
Management target Revenue FY28
Highlights
Revenue growth20.4% YoY growth; organic growth in core research solutions up 26.3%.
MarginsExpanding to 34.3% from 27% YoY due to structural efficiency.
Demand visibilityStrong forward visibility through recurring subscription models in Unbound Medicine.
Management confidenceExtremely high; focusing on rule of 50 and compounding growth.

Growth

Revenue grew 20% YoY, while EBITDA surged 53% driven by 34.3% margins. Operating leverage is strong with headcount rising only 3%.

Outlook

Management reaffirmed target of crossing 300 Cr EBITDA in FY27 and 1,500 Cr revenue by FY28.

Risks

Pruning of AJEE segment to improve quality over volume results in lower segment revenue. Rapid AI adoption creates valuation and obsolescence risks.

Last quarter's promises, checked

Delivered

  • Guided 100 Cr+ EPS in FY26 → delivered 102.11 Cr (= BEAT)
  • Guided FY26 record profitability → delivered record 236 Cr EBITDA (= BEAT)
  • Guided Q4 exit margin turnaround in Corporate Learning → delivered 26.3% margin vs 16.5% FY average (= BEAT)

Partly delivered

  • Guided Unbound Medicine FY27 exit margin 25-30% → current margin 18-19% (= PARTIAL)
Source

Earnings Call Transcript filed with NSE, NSE: MPSLTD. Summary written with AI assistance from the document.

Read the document ↗

MPS Ltd: key numbers

Share price
₹2,666.90
Market cap
₹4,562 Cr
Revenue (annual)
₹768.4 Cr
Net profit (annual)
₹173.2 Cr
P/E (TTM)
24.2×Sector 41.4×
Promoter holding
68.34%+0.00% QoQ
FII holding
1.38%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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