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MPS Limited Q1FY26 Net Profit Rises 3.6% YoY to ₹35.24 Crore; Stock Falls 16%

By HDFC Sky | Published at: Jul 18, 2025 07:50 PM IST

MPS Limited Q1FY26 Net Profit Rises 3.6% YoY to ₹35.24 Crore; Stock Falls 16%
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Chennai, July 18, 2025 – MPS Limited (NSE: MPSLTD, BSE: 532440) reported a 3.6% year-on-year (YoY) rise in consolidated net profit to ₹3,524 lakh for the quarter ended June 30, 2025 (Q1FY26), up from ₹3,408 lakh in the year-ago period. The company also announced a strategic amalgamation of its holding company, ADI BPO Services Limited, and approved the transfer of MPS Europa AG to its eLearning subsidiary as part of a corporate realignment.

Key Financial Highlights (₹ in lakh)

Particulars Q1FY26 Q4FY25 Q1FY25 YoY % QoQ %
Revenue from Operations 18,628 18,211 18,072 3.1% 2.3%
Total Income 19,341 18,921 18,277 5.8% 2.2%
EBITDA (before exceptionals) 5,742 6,287 4,292 33.8% -8.7%
Profit Before Tax 4,950 6,190 3,608 37.2% -20.0%
Net Profit 3,524 4,707 3,408 3.4% -25.1%
EPS (Diluted, ₹) 20.76 27.74 15.26 36.1% -25.2%

Note: Q4FY25 includes ₹591 lakh exceptional income; Q1FY26 includes ₹63 lakh expense.

Segment-Wise Revenue (₹ in lakh)

Segment Q1FY26 Q1FY25 YoY Growth
Research Solutions 10,884 11,841 -8.1%
Education Solutions 5,162 3,280 57.4%
Corporate Learning 2,582 2,951 -12.5%

The company witnessed robust growth in Education Solutions, partially offsetting declines in Research Solutions and Corporate Learning.

Strategic Announcements

1. Amalgamation of ADI BPO Services

MPS Limited’s Board has approved a Scheme of Amalgamation under Sections 230–232 of the Companies Act, 2013, to merge its holding company, ADI BPO Services Limited (post-demerger), into MPS Limited. The transaction is classified as a related party transaction but is being executed at arm’s length.

  • Share Exchange Ratio: 1,16,90,615 equity shares of MPS Limited to be issued to shareholders of ADI BPO Services.
  • Impact: No change in promoter group or public shareholding, as existing cross-holdings will be nullified post-merger.

2. Restructuring of Overseas Subsidiary

MPS Europa AG, a wholly owned Swiss subsidiary, will be transferred to MPS Interactive Systems Limited, a material subsidiary, as part of a group-level eLearning consolidation strategy. The move aims to unlock synergies, streamline governance, and enhance scalability in the global eLearning business.

Management Commentary

Rahul Arora, Chairman and CEO, stated, “The strategic reorganization and simplification of our group structure is a significant milestone that aligns with our long-term vision to consolidate capabilities, reduce complexity, and drive global competitiveness. The growth in education solutions reflects our ability to adapt to the dynamic learning landscape.”

Dividend Update

The Board had earlier recommended a final dividend of ₹50 per equity share for FY25, subject to shareholder approval at the upcoming AGM.

MPS Limited Stock Performance

MPS Limited shares closed at ₹2,433 on July 18, 2025, representing a 16.12% dip. Over the last year, MPS Limited shares have gained 16%, while year-to-date, they have increased by 23%. However, in the previous month, they declined by 7%.

MPS Ltd is currently trading with a market capitalisation of ₹4,150 crore. The stock opened at ₹2,915.70 and moved within a range of ₹2,341.00 to ₹2,928.50 during the session. Over the past year, the stock has touched a 52-week high of ₹3,079.00 and a low of ₹1,754.20.

About MPS Limited

MPS Limited is a listed content and learning solutions provider catering to global publishers, academic institutions, and corporates. The company is listed on NSE and BSE and operates through multiple subsidiaries across the US, Europe, Australia, and Asia.

REF: https://nsearchives.nseindia.com/corporate/MPSLIMITED_18072025123542_Outcome_1230_Final.pdf

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Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations

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