Shares of MPS Ltd tanked over 16% on Friday, trading at ₹2,427, as investors reacted negatively to the company’s Q1 FY26 results. The sharp decline came despite a rise in net profit, as the topline growth remained muted due to weak performance in the core Research Solutions business.
For the quarter ended June 30, 2025, MPS reported a modest revenue growth of just 2.9% year-on-year, reaching ₹186.3 crore from ₹181 crore in the year-ago period. This tepid growth was attributed to the underperformance of its largest segment, the Research Solutions business, whose revenue fell to ₹108 crore from ₹118 crore last year. The segment accounted for 59% of MPS’ total revenue during the quarter.
Despite the subdued topline, net profit rose 40% YoY to ₹35 crore, aided primarily by higher other income. Operating performance improved as well — EBITDA increased by 21% YoY to ₹50 crore, while EBITDA margin expanded to 27% from 22.8% in the same quarter last year, thanks to lower expenses.
On the corporate front, MPS’ board approved a scheme of amalgamation of ADI BPO Services Ltd., which provides infrastructure facility management services, with itself. The company cited simplification of the group structure as the rationale. Additionally, the board also gave an in-principle approval for restructuring its wholly-owned subsidiary MPS Europa AG, transferring its equity in MPS Interactive Systems Ltd., effectively making Europa a step-down subsidiary.
The market, however, appeared unimpressed with the weak growth in core revenue, leading to a steep fall in the stock price during Friday’s session.
