1. At a Glance – Blink and You’ll Miss the Dividend
MPS Ltd is that rare Indian IT-ish company that doesn’t scream on Twitter, doesn’t chase retail FOMO, doesn’t do “AI AI AI” PowerPoints every quarter… and yet quietly prints cash like a bored RBI intern.
Market cap sitting around ₹3,261 crore, stock price at ₹1,906, down ~17% in 3 months, while ROCE is flexing at 41% and dividend yield casually chilling at 4.36%. Yes, this is one of those “price down, dividends up, fundamentals shrugging” situations.
Latest Q3 FY26 numbers?
Revenue ₹182 crore, PAT ₹36 crore, operating margin 32%, and EPS ₹20.75 for the quarter. No fireworks. No bloodbath. Just steady, boring, adult execution. The kind of company that doesn’t go to Goa for a weekend but retires early.
So the big question:
Is MPS becoming irrelevant in a flashy AI-first world, or is it the boring infrastructure that AI itself will sit on? Let’s open the books, sharpen the sarcasm, and audit this thing properly.
2. Introduction – The Anti-Startup Company
If Indian markets were a Bollywood movie, MPS would not be the hero. It wouldn’t even be the villain. It’s the calm, rich uncle who owns half the city and doesn’t talk much.
Founded long before “edtech” became a VC drinking game, MPS is a B2B learning and platform solutions company that works with publishers, universities, medical bodies, research institutions, and corporates. Translation: no students bunking classes, no influencers selling dreams, no refunds drama.
MPS doesn’t sell courses to you.
It sells infrastructure to people who sell knowledge.
And that’s why:
- Margins are fat
- Clients stick around
- Cash flows behave like sanskaari kids
But here’s the twist.
The world has changed. Attention spans are fried. Content is digital-first. AI is rewriting textbooks faster than professors can say “syllabus unchanged since 2009”.
So MPS now finds itself at a crossroads:
- Either become an AI-powered content + platform monster
- Or slowly turn into a high-margin legacy vendor with a great dividend obituary
Which
one is happening? Keep reading.
3. Business Model – WTF Do They Even Do?
Let’s simplify MPS for the smart-but-lazy investor.
Segment 1: Content Solutions (53% revenue share)
This is the OG business.
MPS helps academic, scientific, medical, and professional publishers create, manage, and deliver content.
Not YouTube content.
Not reels.
Serious stuff. Think journals, textbooks, research publications, medical manuals.
Services include:
- Content authoring & development
- Learning design
- Digital transformation of legacy content
This is high-skill, high-trust, low-glamour work. Once a publisher trusts you, they don’t change vendors every Diwali.
Margins? Solid.
Growth? Moderate.
Stickiness? Very high.
Segment 2: Platform Solutions (23% revenue share)
This is where MPS tries to look sexy.
Here they provide SaaS platforms for:
- Submission & peer review
- Workflow management
- Hosting & identity management
Basically, the pipes through which academic and professional content flows.
Recurring revenue.
Higher switching costs.
More tech DNA.
This segment got a big boost after the HighWire Press acquisition. And this is also where AI can actually move the needle, not just appear in marketing slides.
Segment 3: eLearning Solutions (24% revenue share)
This is corporate learning:
- Custom eLearning
- Gamification
- Microlearning
- Serious games
Think employee training, compliance, upskilling.
Less glamorous than consumer edtech, but far more profitable and predictable.
This segment expanded meaningfully after Tata Interactive Systems acquisition.
Quick sanity check:
Does any segment depend on student enrollments? ❌
