MPS Q2 FY27 Results (NSE: MPSLTD)
Signal: Margin expansion
The read
The operating trajectory improved in Q2FY27: revenue grew 15.4% YoY and derived operating margin expanded 320bps to 34.3%, reversing the prior quarter's slower 9.0% growth; however, PAT fell 6.0% to ₹5,210 lakh because Q2FY26 contained a ₹1,281 lakh exceptional gain, so the underlying operating improvement is stronger than the headline earnings decline.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹224.29 Cr | +15.4% | +0.0% |
| Net profit | ₹52.1 Cr | -6.0% | |
| EPS | ₹30.65 | -6.2% | |
| EBIT margin | 34.3% |
P&L walk
Revenue increased to ₹22,429 lakh, while derived operating margin expanded to 34.3% from a normalized 31.1% in the year-ago quarter; PAT declined to ₹5,210 lakh because Q2FY26 benefited from a ₹1,281 lakh exceptional gain.
Segments
Education Solutions was the main growth driver, with revenue of ₹6,868 lakh up 30.0% YoY and segment result of ₹1,694 lakh, while Research Solutions remained the largest contributor at ₹12,982 lakh revenue and ₹5,959 lakh result.
Key positives
- Revenue increased 15.4% YoY to ₹22,429 lakh, accelerating from 9.0% YoY growth in Q2FY26's prior-results trajectory.
- Derived EBITDA increased approximately 22.7% YoY to ₹7,703 lakh versus revenue growth of 15.4%, a 7.3 percentage-point growth gap, with operating margin expanding 320bps to 34.3%.
- Education Solutions revenue rose 30.0% YoY to ₹6,868 lakh, materially faster than consolidated revenue growth of 15.4%.
- PP&E increased 15.8% to ₹2,731 lakh while cash and cash equivalents rose to ₹9,518 lakh, supporting a clean depreciation-to-capex cross-check.
Key concerns
- PAT declined 6.0% YoY to ₹5,210 lakh and EPS declined 6.2% to ₹30.65 despite operating growth, because the year-ago quarter included a ₹1,281 lakh exceptional gain.
- Finance costs increased 120.7% YoY to ₹64 lakh, although the absolute amount remains small and declined 43.4% sequentially.
- Research Solutions, the largest segment at ₹12,982 lakh revenue, grew 8.6% YoY, below the 15.4% consolidated growth rate.
Research and educational content only. Not investment advice.