Shares of MPS Ltd. fell as much as 3% on Thursday, trading around ₹2,829 — down nearly ₹71 from the previous close — as investors reacted to the company’s Q1 FY26 results.
The stock opened weak and continued to drift lower through the session, with analysts citing profit-booking and muted quarterly earnings as the primary reasons for the decline.
MPS reported a net profit of ₹35.24 crore for the quarter ended June 30, 2025, which rose 36% year-on-year compared to ₹25.89 crore a year ago but fell sequentially from ₹47.07 crore in Q4 FY25. Revenue from operations came in at ₹186.28 crore, growing modestly from ₹180.72 crore YoY and ₹182.11 crore QoQ.
While the company posted higher profits and revenues YoY, the sequential decline in net profit and operating margins weighed on investor sentiment.
Here are some key Q1 numbers (₹ in lakhs):
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Revenue from operations: ₹18,628 vs ₹18,072 YoY vs ₹18,211 QoQ
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Total income: ₹19,341 vs ₹18,277 YoY vs ₹18,921 QoQ
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Net profit: ₹3,524 vs ₹2,589 YoY vs ₹4,707 QoQ
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Expenses: ₹14,328 vs ₹14,669 YoY vs ₹13,322 QoQ
The company saw higher employee costs and other expenses compared to the previous quarter, which eroded sequential profitability despite better topline. Exceptional items also swung from a gain in Q4 to a small loss this quarter, adding to the drag.
With the stock already up over 60% in the past year and trading at a relatively high P/E multiple of about 32.5x, investors appear to have booked profits following the modest quarter.
At the time of writing, the stock traded at ₹2,829 with a market cap of about ₹4,837 crore and an average volume of about 15,600 shares.
While the company maintains strong fundamentals and healthy growth YoY, the sequential dip in earnings and expense pressures likely drove the stock lower today.
