MPS Limited (NSE: MPSLTD) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Rahul Arora — Chairman, Chief Executive Officer and Managing Director
Prarthana Agarwal — Chief Financial Officer
Sreenivas Trichy Venkatraman — Chief Operating Officer
David Goodman — Managing Director, MPS North America
Rodney Charles Beach — President
Christine Miranda — Senior Vice President, Research Solutions and Head of AJE
Analysts:
Rahul Jain — Analyst
Navid Virani — Analyst
Mahesh BP — Analyst
Ravi Naredi — Analyst
Sucrit Patil — Analyst
Vikas — Analyst
Krushi Parekh — Analyst
Parimal Mithani — Analyst
Madhur Rathi — Analyst
Presentation:
operator
Ladies and gentlemen, Kuchai and Welcome to the Q3 and 9 month FY26 earnings conference call of MPS Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Arora, Chairman and CEO. Thank you. And over to you sir.
Rahul Arora — Chairman, Chief Executive Officer and Managing Director
Thank you. Good evening from Singapore and a warm welcome to our Q3FY26 earnings call. Today on the call I have with me Pratna Agarwal, CFO of MPS Shrinivas tv, CEO of mps David Goodman, Chief Growth Officer, Rod Beach, President, Corporate Learning Business. Pratna joins us from a corporate office in Noida. Srini from Bengaluru, David from Austin, Texas and Rod from Barr in Sudan. Pratna will kick things off today in our opening segment by discussing our financial performance. Then Sriniv will update us on our Research Solutions business segment. Sriniv will then hand it over to David to help you understand the drivers of growth in education business.
ROR will discuss the progress in our corporate learning business segments. Finally, I will provide an update on key strategic initiatives before opening the call to questions. Let’s get going. Over to you Pratna.
Prarthana Agarwal — Chief Financial Officer
Thanks rahul. The first nine months of FY26 demonstrate that we are successfully executing a long term growth strategy. Despite a challenging holding quarter in Q3, our year to date trajectory remains positive with 9 months revenue growing to INR 563.2 crores. While Q3 saw a minor dip in revenue to INR 1 182.5 crores. At an EBITDA margin of 31.6%. These figures remain within a healthy operational range as we navigate a period of transition. The real story this quarter lies in the engine room of our segments. Education Solutions has emerged as a standout performer growing at over 38% in the first nine months of FY26 and becoming a much larger part of a corporate entity.
Research Solutions continue to serve as a stable anchor contributing to 61.1% in nine months FY26. Conversely, corporate learning saw a significant pullback. We are treating this as a tactical challenge, proactively moving away from the low margin legacy work to realign the segment with the broader growth seen across the group. I would now like to hand over to Srini to discuss the developments in our Research Solutions business.
Sreenivas Trichy Venkatraman — Chief Operating Officer
Thanks Prarthana Our Research Solutions segment continues to anchor the overall performance contributing approximately 61.1% of our total revenue in Q3 FY26 Reaffirming its dominant position, we achieved an impressive 16.2% year over year organic revenue growth in this segment excluding AJEven which reflects deep engagement with star accounts and successful new customer acquisition. Across recept solutions Q3 FY26 was a quarter of meaningful progress, top line momentum in several areas and margin expansion as a result of operating leverage. We demonstrated that we can win business at scale and integrate new work at pace. Taken together, Q3 showed a research solutions portfolio that is commercially resilient with strong pipeline, new logos and credible tech bets.
Strategically, we remain focused on consistently improving performance for existing clients, strengthening relationships and pursuing organic growth. We are actively attacking the market to acquire new logos and collaborating across the different business units within Research Solutions from AJE to High Wire to amplify cross selling and upselling opportunities. A key strategic imperative is advancing our technology focus areas to ensure nonlinear growth and to future proof our business. This includes completely transitioning to AI powered workflows, prioritizing AI and agent AI models, removing any dependency on third party platforms and scaling of Digicore Pro, expediting the roadmap for rubric model from AJE and implementing new measurement frameworks.
These concerted efforts would ensure that we continue to deliver engaging content at scale while delivering sustained profitability and operational excellence. I would now hand it over to Dave to discuss the developments in our education business.
David Goodman — Managing Director, MPS North America
Thank you Srini. The education solutions business furthered the momentum in Q3. Revenue grew by 11.3% year over year and EBITDA margin grew to 40.8%. In Q3 we settled into a more confident stride trading highs and lows for steady compositionally healthier growth. The content and production business built on earlier momentum with major K12 and higher education customers converting successful pilots into follow on waves of product development, legacy overhaul and international projects while also opening doors with new institutional and professional learning clients. In parallel, the digital and accessibility ARM delivered excellent growth and expanded its role in complex high stakes work, large accessibility conversions, multimedia and interactive remediation and sizable EPUB programs demonstrating it can handle volume without sacrificing near flawless quality and schedule performance across the portfolio.
The education practice leaned into emerging capabilities such as AI assisted production and accessibility frameworks accepting some near term people and investment costs in order to deepen strategic relationships, diversify its client base and stand up new service lines including LMS and web accessibility and certified accessible formats that are intended to anchor more scalable education centric growth in FY27 and beyond. I would like to now hand it over to Rod to discuss the progress made in our corporate learning business.
Rodney Charles Beach — President
Thanks David across the corporate learning business, Q3FY26 was less about headline growth and more about resetting the foundations for a different type of future. Mpsi, Liberate and MPS Europa all operated below prior year and budget revenue levels but each spent the quarter tightening cost structures, sharpening commercial focus and leaning into higher value capabilities. MPS drove a dramatic EBITDA recovery by the end of the quarter through disciplined cost controls, high utilisation and early wins with AI enabled solutions whilst continuing to add new logos and maintain strong client satisfaction. Liberate delivered its most improved quarter for the year, rebuilding the pipeline health, deepening anchored relationships and integrating more tightly into the global organization.
Even as enterprise demand remained patchy, the team doubled down on margin protection and RFP discipline. MPS Europa navigated a tough revenue and profitability picture but secured strategically important VR, AR and immersive training projects that began and we began the right size of the organization and the leadership structure to match a more focused high impact portfolio. So taken together, Q3 for corporate was a turn the corner moment. Financials are not there where they need to be just yet but our operational discipline targeted right sizing and pivot towards AI, experimental learning and thought leadership driven sales is letting the groundwork for more resilient and scalable growth.
I’d like to hand over to Rahul to conclude this opening session.
Rahul Arora — Chairman, Chief Executive Officer and Managing Director
Thanks Rod and thank you for the rich update team. Q3 was an excellent jolt. To rationalize our costs we started a new efficiency drive for radical cost optimization. With surgical efficiency we crushed non core. Nice to have expenses. We’ve executed these changes quickly to further expand our margins and prepare a balance sheet. While Q3 required disciplined reset, our forward looking data is compelling. MPS is comfortably placed to surpass an EPS of 100 rupees in FY26. We expect to outperform our Q3 benchmarks as our change measures take hold and the synergies from unbound begin to materialize.
We are playing both the short and long game utilizing this period as a catalyst to build a leaner platform led organization. By Q1FY27 we are conviction that we’ll be operating from a position of significantly enhanced strength. Now coming to the acquisition of Unbound on Friday we informed that MPS North America LLC, a wholly owned subsidiary of MPS Limited, entered into definitive agreements dated 30 January for the acquisition of 100% stake in Unbound Medicine for a total consideration of US$16.5 million subject to customary adjustments. TABLE in accordance with the terms and conditions set out in the SPA and other definitive transaction documents, The acquisition of Unbound is a transformative milestone in our evolution.
By moving directly to the heart of the medical and nursing ecosystems with established institutional relationships, we’ve taken full control of the value that we deliver. This is a bold market expansion into a sector anchored by resilient recurring revenue and unrivaled customer stickiness. We see immense potential for revenue synergies by introducing Unbounce platforms to our global client network while driving capability expansion through our shared expertise. By making the advanced technical resources of MPS Labs available to support Unbound’s proven offerings, we will accelerate our collective innovation and position ourselves as a primary technology first partner for the global healthcare community.
Let us now open the call to questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Before we take our first question, a reminder to all the participants. We request you to kindly limit your questions to two per participant. If you have a follow up question, please join the queue.
Again, we have the first question from the line of Rahul Jain from Dalit Capital. Please go ahead.
Rahul Jain
Yeah, hi. Hope my line is okay. Regarding this particular quarter, we saw some bit of moderation on the traction in the education business side. Is it, is it like a part of the trend that there will be some quarters where there could be this kind of a volatility basis, the kind of contract that we have. And in general, if you could share your thought process on a sustainable basis because this has been one of our key growth drivers. So any color on the prospect out here would be happy to understand on that. Thank you.
Rahul Arora
Thanks. Thank you for your question. Yeah, I’ll. I’ll let Dave give the more detailed response, but at a high level. I wouldn’t say quarters. I would use singular. This is a one off quarter, you know, so. So that’s what I like to pitch in and then. Dave, go ahead and answer the question.
David Goodman
Yeah, I think you answered the question. In part with your question. Definitely the timing of certain projects can impact revenue in a specific quarter. In the education business, year over year, we’re still headed for double digit growth. One really good example of the work we’re doing to have sustained growth. We landed another major higher education client in Q3 on a long term contract and the expectation of that client is a seven figure year over year spend which will begin to ramp in Q4. So we’re continuing to look for those large sustainable clients that can help us avoid any of those challenges from a project to project basis.
Rahul Jain
Sure. Thanks for the color. And one question which is more toward the the M and A that we have announced a few days back. So it would be great if you could share some thought in terms of how this would work, how this business actually work in terms of customer targeting. Is it a digital acquisition that purchase? Is it more like a B2B format where we try to get clients through a sales team? And the subscription charges that I have seen in some of those courses or access, are these perpetual for those specific content? Some of these things you could share your thoughts on.
Rahul Arora
Yeah, so I’ll share some high level information now and then. You know, we’re hoping for the deal to close by February 10th. So currently we’ve just simply signed definitive agreements with some customary closing requirements. Once that happens, we’ll be issuing a fairly detailed press release that details unbound. So unbound overall is a high margin subscription led business model, recurring revenue very similar to our platform business. The business is primarily a B2B business focused on medical schools and nursing schools in the US and Canada. And of course there’s large opportunity to expand that into the customer base of mps, but also just kind of expand unbound globally.
There is an element of B2B2C but that is where the same solution or a configured solution is being sold to individual practitioners through the app universe. But that’s not the primary business. The primary business is a B2B business and like the MPS platform business, very high recurring revenue and institutional stickiness as well given that, you know, large part of the customer base is medical, you know, schools and nursing schools. So like I said, you know, happy to share more information in the coming days, but that’s more about Unmod at a super high level.
operator
Thank you. We have the next question from the line of Navit Irani from Bastion Research. Please go ahead.
Navid Virani
Hello. Am I audible? Yes, thank you for the opportunity. I have two, three questions. First one is on the, you know, guidance that we provided in the presentation saying that we will be, you know, closing FY26 with 100, 100 rupees plus EPS. So I was just trying to back calculate a few numbers and when I back calculated I found that the revenue number that I am arriving at using the existing margins, etc. It comes out to be upwards of 20% for Q4 revenue growth number. So am I thinking on the right line? And an attached question to that is regarding the overall growth.
If I look at the last 2, 3/4, the revenue growth trajectory has been really encouraging excluding aging. But this quarter seems to be slightly off. So how should, you know, as investor 1 think about the long term growth trajectory of MPF is what I wanted to understand.
Rahul Arora
Yeah, I think on the first question, like I’ve shared before, we don’t really like giving guidance, but given the that Q3 was a bit of surprise for everyone on this call, you know, we are providing some high level EPS guidance which is that we’re expecting to cross 100 rupees this year in EPS, which you know, as you can imagine having known us for a while now, that it’s a conservative number. So we feel that we comfortably will go north of the 100 rupee EPS in terms of growth. I think if you look at the first six months, really what was driving the growth was the research business without AJE was growing at north of 15% which again it has done this particular quarter as well.
And for Q1 and Q2, the education business was growing at a supernormal 50% type of rate which kind of normalized this quarter to closer to 11%. And corporate learning this year has been off. So in terms of what we expect is Q4, we obviously, given the guidance that I’ve shared, we obviously expect a better quarter in Q4 itself. And then next financial year, what we’re expecting in terms of broad themes is we’re expecting the rapid decline in AJE to kind of stall and FY27 to be to kind of get a stable revenue for aje, a stable revenue year for age, which basically means that the research solutions business, which is growing without aje, then as a total also starts to do better education of business.
Like Dave explained earlier, we’re expecting to grow in double digits in a very stable way. So no concerns there. And finally in the corporate learning business, you know, we return back to growth as well as an FY27. So in addition to that, of course we have the acquisition of Unbound, which we believe is a strong, robust, growing business which also has revenue synergies with NPL. So yes, we’re thinking of Q3 more as a speed bump and Q4 Q1 looking very solid and FY27 in general looking like an exceptional year.
Navid Virani
Thank you for the details.
operator
Thank you. We have the next question from the line of Mahesh BP from individual investor. Please go ahead. Hello, can you please proceed with it? Yes, now please proceed.
Mahesh BP
Rahul, my question is related to EA changes. Which market segments is seeing a bigger threat to revenue and margins from all the changes happening in AI world?
Rahul Arora
Sorry, could you repeat that please? Your voice is not coming clearly.
Mahesh BP
Okay, give me one second. Can you hear me now?
Rahul Arora
Yes, much better.
Mahesh BP
So my question is which market segments that MPS operates in is seeing a bigger threat from. A bigger threat to revenue and margins from the AI related developments?
Rahul Arora
Yeah, you know we are, we are seeing AI more as an opportunity. On the research side of the business, the theme is to drive improve cycle time as customers look to monetize their content faster. So the theme is around speed and efficiency and cycle times within research. I guess the portion of the business that has possibly been impacted by AI on the revenue side is the ag business that is more B2C relevant. So that’s one potential aspect. But there also we have our own platform called Rubrik that we are selling. Additionally a lot of the growth that we expect in AG is expected to come from B2B which is similar to the rest of the research solution business.
So that’s research within education. We actually have not seen the same kind of adoption that we’ve seen within research. You know, customers seem to be more risk, risk averse in the education. In the education space we have seen again some, some discussion around speed and efficiency as well as leveraging, leveraging AI to drive, you know, speed, efficiency, workflows and reduce costs. And specifically speaking to the education space. And there we’ve seen whenever customers have done that, they’ve consolidated the supply chain and given more work to scale players like mps. So while it may have been, you know, a disadvantage for some of the smaller fringe players because they get knocked out for players like mps, that has actually been a boost.
So to give you a couple of examples on the translation side, you know, traditionally, you know, customers would go to these specialized language companies based out of the region that spoke the language. And now that whole translation work is being outsourced to us. On the corporate learning side of the business, yes, the straightforward elearning, the flat elearning level 1 type of e learning, we are seeing less demand for that and there’s more demand for more complex type of development. The most straightforward development has pretty much been. Is not being done actively outside the organization. Most enterprises are handling that internally.
But overall I think we are seeing it as an opportunity. Because what it is doing is it is consolidating a highly fragmented market and in the benefit of scale players like mps.
operator
Thank you. We have the next question from the line of Ravi Naredi from Naredi Investments. Please go ahead.
Ravi Naredi
Thank you. Ravalji. Giving the reasonable result of this quarter, sir, due to US dollar, euro and pound rises drastically versus Indian currency. So will it improve margin in future?
Rahul Arora
Yes, absolutely. It’s very accretive for us.
Ravi Naredi
Okay. And second, we always have in mind to raise equity through qib. I advise you have good amount of money in this year. So keep in kitty initiative paying higher dividend. So question of QIB doesn’t arise.
Rahul Arora
Absolutely agree. We are not planning to use any equity financing. We will be using debt as an option. And later this week we’ll be sharing more information on what does that debt look like. So that disclosure will be filed and you’ll have the information once the disclosure is filed. But we’re not looking to do any. Any equity financing that is not on the.
Ravi Naredi
Thank you very much. And how much we remain in surplus unbound medicines buying after buying this company.
Rahul Arora
So. So we’ll be. Once we file the disclosure, you’ll have all that information. We just have to file.
Ravi Naredi
Okay.
Rahul Arora
Okay.
Ravi Naredi
Thank you. Thank you. Thank you. Thank you, sir. All the best.
operator
Thank you. A reminder to all the participants we requested to kindly limit your questions to two per participant. If you have a follow up question, please rejoin the queue. Again we have the next question from the line of Sukrit Deepatif from Eyesight Pinterest Private Limited. Please go ahead.
Sucrit Patil
Good evening to the team. I have two questions. My first question to Mr. Rahul is as MPS works with global clients across services and platforms, how does management think about balancing deeper engagement with existing clients versus adding new clients? What changes in client spending behavior or derivative deal structures would prompt you to adjust this? Focus any color on how you internally decide when to shift that balance. Just want to understand your view on that. Thank you. That’s my first question. I’ll ask my second question after this.
Rahul Arora
Okay. I think. I think at mps, depending on the business segment the emphasis shifts a little bit. But overall the philosophy is that there are certain partnerships that are what we call star partnerships. These are star accounts. These partnerships are determined if a customer hits one or Two out of three criteria. The first criteria is current size. The second criteria is future potential. And the third criteria is some strategic intent. So for example, if the customer was Apple, for example. So as long as the customer meets two out of these three requirements, they immediately become a Star customer.
A Star customer gets an executive sponsor from the senior management team of mps. They get a dedicated account director, they get a dedicated communications contact, and they get a dedicated operations Spock. If in addition to the full teams that sit behind the delivery teams that sit behind these teams, a Star account is informed that they are a Star account. Because this requires collaborative effort. Lot of governance. We do monthly governance, we do quarterly business reviews. We make sure that we are man marking the entire customer organization as well as interacting not just tactically but also more strategically through innovation labs and workshops.
And we also bring these customers together. So different STAR accounts also come together in different forums. So there’s a whole framework at NPS around star accounts. When we started this journey, we had 10 star accounts that we scaled to 30 and now we are almost at in triple digits. So across the three segments, that is Research, education and corporate, typically what we’ve seen is a Star account over a two to three year period. If we started the journey with identifying them as a STAR account, the lines of business or kind of the spread of business that we do with them double.
So for example, when we started the first phase of Star accounts, our average cross sell index, which is the number of business units or MPS engaging with a star account was 2.5x. So on average star accounts, two and a half business units were working with star accounts. After two years that number jumped to 5.5, which means that five and a half business units on average out of 15 business units were engaging with a STAR account. So we saw a phenomenal jump through the initiative. And that’s really what we are driving forward is entering into a strategic partnership where the respective customer and MPS are aligned on vision, strategy and goals, making sure that they are consuming all that we can supply of mps, working from there backwards from the problem statement and then finally also exposing them to other NPS STAR accounts.
So that it’s not just learning from the partnership, but our overall Star account framework in terms of net new customers, again, depending on the market, we approach it differently. We are probably the most aggressive in acquiring net new customers in the corporate learning market given the deal sizes and the nature of the business. But overall, I think if you look at the overall MPS customer base, given our size of company, we are over 400 B2B customers. So for us, cross selling and going deeper within the existing customer base is the dominant strategy.
Sucrit Patil
Thank you. Another extension to the same question. But my second question is to Mrs. Agarwal. I believe she’s on the call today.
Rahul Arora
Yeah, she was on the call.
operator
Yeah.
Rahul Arora
What’s the question?
Sucrit Patil
Yeah. Beyond the reported margins and cash margins and cash flow, what are the key early signals you track internally? Maybe a project mix, platform usage or billing pattern or anything particularly that you have to assess margin stability and cash flow flow quality before they show up on the balance sheet. I want to understand your view on how you track all all these things internally. Thank you.
Prarthana Agarwal
Rahul, would you take it and then I can add on?
Rahul Arora
No, go ahead.
Prarthana Agarwal
So in terms of tracking I think we have our internal matrices wherein we track the cost and margins internally for each the businesses and whenever we see signals wherein we see a reduction like we have seen aje where we have proactively taken measures in terms of restructuring etc. So I think internal tracking we have our monthly systems wherein we track the margins and the revenue by bus subbus internally and we take corrective actions on a timely basis and on a real time basis.
operator
Thank you. We have the next question from the line of Vikas Mistry from Moonsan Ventures. Please go ahead.
Vikas
Yeah, thanks for the opportunity round. I have slightly long term question. So as you alluded that due to artificial intelligence lot of small companies are going away and you are trying to get that pie of it. But at the same time some of the large companies also increasing their capabilities because of that and they can also enter into areas. So does the evolution of AI producing their long term cash flows and breaking your longevity of the cash flows. So how do you see on one side you’re getting slightly benefited as you yourself alluded and on the other side there may be a chance that other players can come into the market and they can reduce the longevity of your cash flows.
Rahul Arora
Yeah, I’ll answer that question. You know, in a brief way. I think Shini, I want to bring you in and the reason I want to bring Shini in is because you know he is a new entrant into our industry. He’s come in a very senior position. He’s the chief operating officer of the company. So he has the perspective of what, you know, when outsiders come in, what does it feel like? And also the perspective of what his view of the MPS value proposition is. But the short answer to your question is outsiders have tried before.
I think what is different about MPS and unique About MPS is we bring the domain expertise that’s been around, we’ve been around for 55 years, a little bit more now, and we have been able to very uniquely combine this domain expertise with technology. So the combination of subject matter expertise, domain knowledge with technology is really our moat. If you’re living and breathing this business, you understand this moat intuitively. So that’s quite so hard for me to describe, but maybe Srini, you can come in and share your thoughts.
Sreenivas Trichy Venkatraman
Sure. Rahul. As much as I would like to get on the thread bandwagon, it’s not an overstatement when we say that we view the AI transformation as a class half full opportunity rather than a class half empty threat. And main reason for that is we are probably the only publicly listed independently owned company of our size that has the capabilities and the demonstrated, and the demonstrated ability to service the entire value chain for our clients end to end. And when people talk the impact of AI and its ability to transform client businesses, they don’t fully understand that this transmission cannot be executed in parts of the value chain.
It has to be executed across the entire value chain, which is where our particular advantage lies because we can actually help clients optimize the whole rather than address parts of the whole, which will need for the bottlenecks to move into areas that they don’t control. So long story short, I feel that we have a significant moat, especially because our clients mainly maintain the truth infrastructure around research integrity and the validity of what is getting published. So in that sense they need partners who have deep domain expertise and has been demonstrated again and again that, you know, the, with the advent of AI, specific technical capabilities are becoming more and more commoditized and domain expertise is what’s getting valued more and more and we are in prime position to take advantage of it.
Yeah, we do echo the similar.
Rahul Arora
Yeah, sorry. Yeah, yeah, sorry. Sorry to, Sorry to interrupt. I just like to add one more point. So, so, you know, I think this, this question, you know, let’s, if we get really specific, you know, we’ve just come fresh of a transaction, right? And we’ve just recently entered into definitive agreements to acquire unbound. So if you get really specific and say, you know, can, you know, OpenAI and anthropic, you know, with the language capabilities, for example, disrupt unbound. Right? That’s, that’s, that’s, that’s something we extensively covered in the diligence of the acquisition of unbound rights.
So just to pick up that specific thread, can AI impact Unbound, for example, the answer Is no, this requires some understanding of the domain. So think of it from a clinical perspective. In a clinical perspective there’s a huge trust gap that Unbound is solving for the general LLMs that like an OpenAI and anthropic, they are probabilistic, meaning they’re prone to hallucinations. They lack the verified peer review basis on which high stakes medical decisions are taken. And no medical school or nursing school for that matter will accept that kind of liability. So first, you know, Unbound has exclusively the content they own or license, gold standard, you know, clinical guides.
Second, they’ve integrated everything into their workflow beautifully. So it’s embedded already in the workflow of 480 institutions and with a, with a retention rate of 97%. So it’s so embedded in the workflow. The switching cost of moving away from a standalone chatbot is also not possible. Forget a full blown LLM switch and finally, you know, you know, to supercharge, you know, the data. Unbound has for example integrated AI that not only thinks within the guardrails of the library, but also is legally indemnified evidence based intelligence layer that simply that AI simply cannot safely replicate. So again you have, the domain piece is super important here and you have to understand that the value creation is not around language.
The value could create. Creation here is around science. And we are so embedded in the workflows that the switching cost is simply like it’s, it’s impossible.
Sreenivas Trichy Venkatraman
Yeah, we do echo the similar observations but having said that, if in today’s environment we are virtually just making the things faster and the growth should be much faster in coming times if we do not grow greater than materially higher rate means 15% to 20%. So what could be the handicap that will, that will pull us on downward directions which we are seeing as of now, but we feel that going forward it should be growing materially higher.
Rahul Arora
So I didn’t understand the question what could pull us down?
Vikas
This is a once in a generation opportunity wherein we are getting the fruits of the AI and we are deeply embedded into the workflows and we are are suitably placed to get the whole market share with us. If we could not able to grow, what can be the conditions that can?
Rahul Arora
No, I don’t see this as a, I don’t see this as a zero sum game. I think that if you’re seeing this as a zero sum game. Yeah that there’s a problem there. This whole opportunity will only be unlocked through deep collaboration, through deep perseverance and iteration. This is not some windfall that’s going to happen and winner takes all type of setup. This is not a zero sum game. So we don’t see it that way, at least for our domain. I’m not speaking for all markets, but for our specific domain, for our specific market. We see this as a highly collaborative, iterative and partnership concept that has to be done between us and the customer and in some cases with some of our competitors and other stakeholders in the value chain.
You know, we’re constantly integrating with competitors in our products as well. So yeah, this is not, this is not a, you know, black and white kind of situation.
operator
Thank you. We have the next question from the line of Khrushi Parikh from Bugle Rock pms. Please go ahead.
Krushi Parekh
Yeah, hi. So again, I’m not particularly sure about how much relevant this is, but we had seen that the university funding in the US was curtailed materially over last one year and also is expected to continue. So specifically on that particular front, how do we see this kind of budget curtailment impacting our volumes on say, the research side? Not immediately, but say over next one, two or three years. And what are we specifically doing to tackle that, if at all?
Rahul Arora
Yeah, if you look at our overall geographic concentration, the US is now less than 50% after unbound will pick up a little bit more. But I think what we are seeing is that we are monitoring global spends as well. So global spends are on the rise. We haven’t had any major issues with our customers in terms of spends coming down. Potentially it has affected the marketplace, but specific to mps, it has not affected us. Like I was saying, we have, you know, over 400, you know, customers that we serve. So for us, it’s less about acquiring net new customers, it’s more, more about going deeper within, within the existing customer base.
So for us, you know, one is, you know, being more diverse than anyone else. I think one of the few companies in the industry that has such a, such a small percentage of North American revenue, you’ve seen this quarter itself, the UK Euro revenues has picked up quite a bit. Second is with our existing customer base, we are not seeing this exposure. And third is because we have over 400 customers. For us, it’s really not about, at least on the research and education side of the business, it’s really not about acquiring net new customers. It’s more about going deeper within.
Krushi Parekh
Okay, okay. And it’s been some time since we have spoken about combining our sales efforts. You know, I mean, providing all the opportunities and providing all our Offerings to the customers. So where are we on that journey and what are the initiatives that we have currently taken up to overcome any challenges that we have to integrate all the sales efforts?
Rahul Arora
Yeah, I think the biggest challenge is in terms of scaling the effort. I think we have it proven on a 10 customer basis. We have it proven on a 30 customer basis and have it proven on a 50 customer basis. Now as we’re going from 50 to 100, it’s really about execution. So in terms of execution, it’s about building the operation efficiency like we have in our service delivery, building the same operational efficiency and rigor in account management, business development and how orders flow from sales to operations. So it’s mostly an execution challenge. Our strength as a company is execution.
That’s been our value proposition is operational excellence. So we’re bringing some of the same themes to this scaling up. So no challenges as such. But yes, of course, any company that’s trying to grow at the pace we’re trying to grow, we do have growing pains.
operator
Thank you. We have the next question from the line of Parimal Vitani from Credential Investments. Please go ahead.
Parimal Mithani
Hello, can you hear me? Yes, hello. Yeah, I just wanted to clarification. You mentioned to your earlier participant about raising one of the colleagues about raising debt. Can you what is it be regarding for that?
Rahul Arora
Yeah, so you know like I shared, we’ve entered into definitive agreements to acquire unbound for US$16.5 million. You know, so there is going to be some debt involved in the transaction. We will be. Once we file the disclosure, you’ll have all the details. It’ll be in the public domain. We haven’t filed the disclosure yet.
Parimal Mithani
Okay, thanks. Thank you.
Rahul Arora
Because we have not received the debt. So we have not filed this code yet.
operator
Thank you. We have the next question from the line of Madhurati from Countercyclical Investments. Please go ahead.
Madhur Rathi
So Rahul, I’m confounded that you are giving a guidance of surpassing 100 rupees EPS for FY26. Whereas if you see our quarter ending September 25th, we already were doing a trailing twelve month EPS of 104. So now when you say that we will cross 100 rupees EPS for the full financial year. I hope we are not expecting a degrowth in the fourth quarter. And in the last call you also mentioned that you expected a further increase in margins in the second half. But it doesn’t seem that they have come. And also Rahul, I think there is some issue with the E learning that for this Division has gone back over three years back.
I mean if you see the performance even three years back we were doing like significantly more top line as well as margins than what we are doing today. And in between there was this Liberty acquisition also. So I mean if you could just shed some light on all these points.
Rahul Arora
Sorry, could you ask a question?
Madhur Rathi
Yes, Rahul, the question is that firstly we were already doing 104 rupees EPS in trailing twelve months till second quarter of this financial year.
Rahul Arora
Let’s go. Question. It’s difficult. Sorry to interrupt. It’s difficult to answer multiple questions together. Let’s go one by one. So I think like I shared, we are comfortably placed to cross you know, an EPS of 100 rupees. That’s all I shared. And the reason I shared that was because there was some concern from people that attend these calls is that is there going to be a miss. You know we normally don’t like to give guidance and that’s why we’ve given a very tight, conservative guidance. There are a bunch of numbers that are bigger than 100 but that’s all we can share at this point in time.
What was the second question?
Madhur Rathi
Yeah, so now the E Learning. Rahul, if you see then we have gone back over three years back. If you compare our quarterly numbers then it is less than what we were doing three years back. And in between we did this Liberty acquisition also in the same space. So and so I mean why is this, why is it taking so much time for the numbers to pick up?
Rahul Arora
Okay, so I’ll again answer the question at a high level in terms of the corporate learning business and I’ll bring in Rod to talk about what the prospects look like right now. You know, earlier this year we took a, you know, took a, took an introspective look at, you know, how the corporate learning business was performing. And we realized that we are operating in three silos. We have an entity in Switzerland that’s doing its own thing. We’ve got an entity in India that’s doing its own thing and we have an entity in Australia that’s doing its own thing.
And we saw that from an operational efficiency standpoint the Australian entity was performing far better than its peers both in terms of productivity as well as in terms of margins. And also in the small region of Australia also had a very high market share. So with that kind of context, Rod and I spoke. You know, his, the, the, our final buyout of the, of the, of the stub left and Liberate was, was coming up and you know, Rod was interested in playing a larger role within the, within the overall corporate learning business. And we decided together that was best for him to run the corporate learning business as the president and bring all these three entities together and really go after the market in the managed services play that we were looking to pursue.
So that’s kind of the background. I think we’re starting to see some very, very early signs of success in the corporate running business. But Rod, please come in and you know, describe what you’re seeing already.
Rodney Charles Beach
Yeah, well, it’s that phrase, strengthening numbers. The opportunities that we have to be able to do the upsell and cross sell between the different entities is far greater than us all trying to do our own separate things. So systems, platforms, technologies, innovations, geographies, people skills, everyone was in silos. So now the focus has been to align those, we’re making good progress on those. And again back to that strength in numbers is AI is disrupting that level one low end market space. The organizations are sitting there wondering how it’s going to impact them and what they can do in their own space with generative AI, with automation and efficiencies and content generation.
But now that’s created an opportunity for us bigger in size for us now to go for the managed learning services. So as organizations are planning for AI automation, they’re wanting to play it safe and managed learning services is going to be the next big thing that’s going to take off and we’ve been positioned ourselves very strategically to take that. We’ve got some big opportunities at the moment, we’re hoping to close soon and then we’re going to be well positioned to be taking on some very large projects in the managed learning services space off the back of uncertainty of a market that is sat watching to see what’s going to happen.
This is a strategic play we’re going to have in that space, but also the other opportunity that we see is the higher end elements. So again, dropping off that level one but focusing on the level three and some of the ar, VR and AI agentic bots and personalised learning pathways. So it is a very huge and exciting pivot in the market and we believe we’re at the very forefront of that. And uniting the team just means it’s going to make it easier for us to get those bigger targets rather than chasing small value one off E learning projects.
operator
Thank you. We have the next question from the line of Rahul Jain from Daulat Capital. Please go ahead.
Rahul Jain
Yeah, thanks for the follow up. Just two things. Firstly of this new M and A, are we expected to expect this business to be part of our are this revenue going to be subset of education revenue or it will spread across the three businesses? And secondly any color on ag part of the business how we expect growth and margin in this business from a directional point of view.
Rahul Arora
Yeah. So Rahul, I’m just going to take a minute to also answer the previous gentleman’s question. Pratma just gave me a data point that I did not share. I’ll quickly answer that and I’ll come to your question. And Christine, I’m going to bring you in on the AJ question. So we also have to look at the, you know, when we’re looking at eps, we also have to look at the impact of the labor code. So that’s about you know, three and a half rupees per share. So, so that we are also dealing with that negative.
So when you’re computing you know the, the, the possible EPS for Q3, sorry for Q4 and for FY27, do do remember there’s a subtraction of negative 3.5 coming from the labor code exception like item. So that’s one point. Second point is let me, let me bring Christine in to talk about AJ then probably answer your second question. So that’s not a data question. So Christine, you want to talk a little bit about aj? Just give a color on what’s going on, what’s, what’s looking good, what you know, what have been the achievements this year? What does next look like?
Christine Miranda
Sure. Thanks Rahul. So we’re expecting FY27 to be the first year for AJ to show some stable revenue. This is along two lines. On the B2C. On the B2B partnerships we have newly been awarded as a vendor for one of the top publishers, top international publishers. So we’re very happy about that. We’re seeing more interest in the editorial services that we are providing to publishers like journal editorial office, peer review services. So that’s going to be another line of growth that we’re expecting, expecting to see. And we are in conversation with other top publishers as well as university presses.
So that’s on the B2B side. On the B2C side where we’ve already started expanding our suite of services that are intended to cater to more evolving researcher needs. This includes a more competitively priced scientific editing like service plagiarism, check figure formatting services that are more sought after in the current researcher space. We’re also experimenting with more competitive pricing now that we’ve seen some improvements in costs. So we’re seeing some increase in the order numbers and value for services that we are able to price more competitively. And the third aspect of the B2C growth is going to come from value addition to existing services.
So we’re expecting to see an overall stable revenue year for AJE in FY 2027.
Rahul Arora
Yeah. And Rahul, to answer your question on classification of revenue and segments for unbound, unbound is mostly like, you know, in the education segment. So we will consolidate. We will basically report these numbers. Within education there is a very tiny piece of revenue, smallish piece of revenue that will potentially go to the research segment, but mostly education, some research and no corporate.
Madhur Rathi
Fair enough. And thanks for the color on ag.
operator
Thank you very much, ladies and gentlemen. We will take that as a last question. And that concludes the question and answer session. I now hand the conference over to Mr. Rahul Arora for the closing comments. Thank you. And over to you sir.
Rahul Arora
Thank you everyone for your active participation in our earnings call for Q3. We appreciate all your thoughtful questions. Your unique outside in perspective is helping us learn and improve with every call. I also want to thank all our stakeholders for the continued respect and support. Like I shared previously, this has been a remarkable journey and wouldn’t have been possible without you. And we’re looking forward to supercharging scale for mps. Thank you for your continued support, feedback and partnership mindset.
operator
Thank you very much on behalf of MPS Limited. That concludes this conference. Thank you for joining with us today. And you may now disconnect your lines.