MPS Limited reported its unaudited financial results for the first quarter ended June 30, 2026, marking the strongest opening quarter in the company’s history. Consolidated revenue from operations increased 20.38% year-on-year to ₹22,424 lacs (₹224.24 crore), while net profit after tax surged 42.99% to ₹5,039 lacs (₹50.39 crore). The company achieved a record EBITDA of ₹7,696 lacs (₹76.96 crore), representing a 53.03% increase from the corresponding period last year. This performance was driven by significant operating leverage, with headcount rising less than 3% despite robust top-line growth, allowing margins to expand rather than compress.

The results were reviewed by the Audit Committee and approved by the Board of Directors at a meeting held on July 21, 2026. The Statutory Auditors issued an unmodified limited review report. During the subsequent earnings conference call held on July 22, 2026, Chairman and CEO Rahul Arora and CFO Prarthana Agarwal emphasized that the growth was underpinned by a strategic shift toward outcomes-based revenue models and the integration of AI-driven workflows across all segments. The company reaffirmed its FY27 guidance, stating it expects to comfortably cross ₹300 crore in EBITDA, treating this figure as a floor rather than a ceiling.

Financial Performance

The table below summarizes the consolidated financial performance for Q1 FY27 compared to the previous year:

On a standalone basis, revenue rose to ₹12,436 lacs and net profit to ₹4,096 lacs. Excluding AJE, which is undergoing a deliberate reset, underlying revenue grew 28.4% to ₹198.47 crore, with EBITDA expanding close to five points to 32.4%. Total cash and cash equivalents stood at ₹138.02 crore as of June 30, against borrowings of ₹37.63 crore related to the Unbound Medicine acquisition. Days Sales Outstanding (DSO) improved to 45 days from 51 days in the prior quarter.

Operational Highlights

Research Solutions remained the largest segment, contributing 55% of total revenue. Segment revenue grew 13.22% year-on-year to ₹12,323 lacs, while EBITDA grew 37.9%, widening the segment margin to 45.1%. Ex-AJE revenue surged 26.33% to ₹9,746 lacs. The company highlighted the deployment of DigiCore, an AI-enabled production ecosystem, and Research Integrity Check, which detects paper mills and identity fraud. These tools are now live in client delivery, enhancing productivity and quality control.

Education Solutions revenue increased 42.21% to ₹7,341 lacs, bolstered by the first full quarter of Unbound Medicine’s contribution. Unbound brings a recurring, high-renewal subscription model anchored in medical and nursing education, lowering customer concentration. Corporate Learning revenue rose 6.89% to ₹2,760 lacs, but EBITDA grew 60.7% as margins expanded to 25.33% from under 17% a year ago. This improvement followed a restructuring that reduced headcount by approximately one-third, shifting focus to AI-enabled enterprise capability enablement.

Strategic Outlook and AI Integration

Management emphasized that MPS is transitioning from being paid for effort (pages/hours) to being paid for outcomes (manuscript acceptance, integrity verification). This shift is a primary driver of margin expansion. Rahul Arora noted that the company is now a "Rule of 50" business, where the sum of revenue growth (20%) and EBITDA margin (34%) exceeds 50, indicating compounding value creation.

The company is actively pursuing acquisitions in the Education sector, targeting assets with at least $15 million in revenue, strong organic growth (10%+ CAGR), and domains where AI acts as a tailwind rather than a threat. Financing for future acquisitions will primarily rely on internal cash accruals (approximately ₹15–18 crore monthly) and debt, avoiding equity dilution where possible. The company aims to reach ₹1,500 crore in revenue and ₹450 crore in EBITDA by FY28.

MPS Limited has scheduled an extraordinary general meeting (EGM) of its equity shareholders for Saturday, August 22, 2026, to seek approval for the Scheme of Amalgamation with its promoter holding company, ADI BPO Services Limited. The National Company Law Tribunal (NCLT), Chennai Bench, approved the first motion application on July 02, 2026, directing the convening of the meeting while dispensing with the requirement to hold separate meetings for shareholders and creditors of the transferor company. The merger aims to simplify the group structure, eliminate inter-company transactions, and enhance operational synergies, with the transaction expected to be earnings per share (EPS) accretive from the first year of implementation.

The meeting will be held through Video Conferencing/Other Audio-Visual Means (VC/OAVM) at 10:00 A.M. IST, followed by a meeting of unsecured creditors at 11:30 A.M. IST. Remote e-voting is available from Wednesday, August 19, 2026, at 09:00 A.M. IST to Friday, August 21, 2026, at 05:00 P.M. IST. The cut-off date for determining eligibility is Monday, August 17, 2026. The quorum for the equity shareholders' meeting is 30 members, while it is 8 for unsecured creditors. Shri S.C. Jain has been appointed as Chairperson and Shri Kishore as Scrutinizer.

Key Meeting Details

Under the scheme, MPS will issue 1,16,90,615 equity shares with a face value of ₹10 each to ADI BPO shareholders in proportion to their holdings. The existing shareholding of ADI BPO in MPS, which stands at 68.34%, will be cancelled and extinguished upon issuance. The appointed date for the amalgamation is the closing hours of April 01, 2025. The Board of Directors of both entities approved the scheme on July 18, 2025, following recommendations from the Audit Committee and Committee of Independent Directors.

Financial Context and Valuation

The valuation report dated July 18, 2025, by M/s. Finvox Analytics recommended the fair share exchange ratio. M/s. D & A Financial Services Private Limited issued a fairness opinion on the same date. Statutory auditors M/s. Walker Chandiok & Co LLP certified that the accounting treatment conforms to applicable standards. Both the National Stock Exchange of India Limited and BSE Limited issued no-adverse observation letters on March 02, 2026.

MPS reported revenue from operations of ₹351.34 crore and profit after tax (PAT) of ₹110.00 crore for FY25. ADI BPO reported revenue of ₹96.92 crore and PAT of ₹92.25 crore for the same period. As of December 31, 2025, MPS had a net worth of ₹351.76 crore, while ADI BPO’s post-scheme net worth is not applicable as it will dissolve without winding up. The merged entity aims to leverage a stronger balance sheet for future growth opportunities.