MPS Ltd research Reports
Executive Summary
Title: Pick of the Week Target: MPS Ltd Recommendation: BUY
Recommendation
Methodology: P/E multiple based on FY28E EPS (Base Case: 15.75x, Bull Case: 17x)
Key Metrics
Total Operating Income
768.4 Rs Cr
FY26P
EBITDA
235.9 Rs Cr
FY26P
Adj PAT
167.5 Rs Cr
FY26P
Diluted EPS
97.9 Rs
FY26P
Revenue CAGR
16.3 %
FY26 to FY28E
EBITDA Margin
30.7 %
FY27E
Cash and equivalents
119 Rs crore
March 31, 2026
RoE
33.2 %
FY28E
Visualizations
Solid = reported · dashed = forecast
Solid = reported · dashed = forecast
Our Take
MPS is a premier learning and platform solutions provider integrating content, technology, and AI. The company is shifting from acquiring turnaround assets to high-growth businesses to achieve 'Vision 2027'.
"MPS is a premier learning and platform solutions provider operating at the intersection of content, technology, and artificial intelligence... The journey toward Vision 2027 is centred on achieving significant scale through a dual-pronged approach"
Acquisition of Unbound Medicine
MPS entered the healthcare and medical IT segment by acquiring Unbound Medicine for approx $15.18-16.50 million, which is expected to contribute Rs 85-95 crore in annualized revenue in FY27E.
"MPS North America LLC acquired a 100% stake in the AI and healthcare technology firm Unbound Medicine for approx. $15.18 Mn... This acquisition is expected to contribute ~Rs 85- 95 Crore in revenue on an annualized basis."
Market Opportunity
MPS operates in a Total Serviceable Addressable Market (SAM) of US$ 16 billion across Research, Education, and Corporate Learning, currently holding a 0.53% share.
"MPS is competing an addressable market of US$ 16n led by three segments, Research, Education, and Corporate Learning. The company’s current revenue size (combined) stood at US$ 85 Mn, it is 0.53% share."
Key Risks
- Currency and Geopolitical RiskVulnerability to Indian rupee appreciation against USD/Euro and economic trends in US (50% revenue) and UK/Europe (33% revenue).Source: "Indian rupee appreciation against the USD and Euro... MPS derived 50% of its revenue from the U.S and 33% from the UK & Europe in FY26"
- Client ConcentrationHigh reliance on a small number of clients; top 15 clients contribute 67% of revenue.Source: "MPS has client concentration risk, Top-5 clients contributed ~47%, top-10 clients contributed ~60%, and top-15 clients ~67%, in FY26"
- Technological DisruptionPricing pressure from foundational AI models in commoditized content and e-learning services.Source: "MPS could face pricing pressure due to rapid progress in foundational AI models in commoditised content and e-learning services"