Can any learned member provide detailed insight on business of MPS due to Anthropic/AI impact. Is this real threat to MPS. Market cap of company is presently half of their targeted revenue of 1500 Cr in FY28. The stock continues its free fall. Thanks
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There is a call in few days to discuss their acquisition. Will ask about revenue loss, pull back from clients and whether there will be reduction in dividend.
@Nitya_Shah They have not paid interim dividend for FY26. Seems to be like for funding Unbound acquisition. My only concern is are they still on track for Vision 2027 - revenue target of 1500 Cr by FY28. How much revenue is expected from AJE in FY27 since they have mentioned that revenue of AJE will stabilize in FY27. Going forward what is their dividend policy.
The threat around AI and the defensibility of the Company was discussed in detail in last few calls (specially Q3FY26). And this call happened like 2 weeks ago, so much of disruption was already in pubic domain then.
Below is my understanding of the MPS business (in light of AI enhancements). Ironically, this was also summarized using AI :)
MPS Limited operates in an âAI-enhanced, not AI-replacedâ zone, where AI acts as a force multiplier rather than a disruptor. In its core Research Solutions segment (61% of revenue), the company benefits from a strong domain moat built over 55+ years in scholarly publishing. As AI increases research output and submission volumes, publishers require moreânot lessâeditorial oversight, research integrity checks, and workflow management. MPSâs proprietary platforms (HighWire, DigiCore, RICS) embed AI within trusted, end-to-end workflows, while its 200+ PhDs and AI-focused MPS Labs team provide a human verification layer that LLMs cannot replace. This has translated into 16â18% organic growth and margin expansion driven by AI-led efficiencies.
In Education Solutions (~27% of revenue), AI is accelerating vendor consolidation in favor of scaled players like MPS. Over 60% of growth is AI-powered, with automation driving margin expansion from 28% to over 40%. AI-enabled translation, accessibility, and digital transformation services are shifting work away from smaller vendors toward integrated providers. Meanwhile, Corporate Learning (12% of revenue) faces near-term pressure as basic eLearning becomes commoditized, but MPS is pivoting toward Managed Learning Services, immersive AR/VR, and enterprise-scale AI-driven learning solutionsâareas requiring strategic integration rather than simple content generation.
Overall, MPSâs advantage lies in its end-to-end value chain control, deep domain expertise combined with technology capabilities, embedded SaaS platforms with high retention, and strong client relationships. While AI commoditizes low-value tasks, it increases complexity and compliance requirementsâcreating demand for trusted, domain-rich partners. MPS appears structurally positioned to capture AI-driven workflow transformation rather than be displaced by it.
So while management is very confident that AI is rather an advantage to them, the share price is saying something otherwise. It can of course be reflective of the overall mood towards IT Sector as a whole. Another interesting bit to note is that Management DID NOT do QIP last year when it could have easily done so - as markets were rating at almost 2x the current price, so raising money for acquisitions was highly plausible. Additionally, the promoters also did not sell any of the shares despite the lingering AI threat - they must be much more aware of the developments than us. Lastly, their new acquisitions - AJE and Medicine Unbound are also AI enabled plays, along with strong team at MPS Labs.
This share price movement is a little unnerve, but only time will tell whether it was noise or actual business impact which was being foretold by the technicals. Next weekâs call comes at an interesting juncture as well.
Disclosure : Invested from lower levels but now seeing significant drop in value
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Somebody tracking the company please put forward your views on the company and the current status of the company.
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Keynote Capitals maintains a BUY rating for MPS with a target price of Rs. 2,801.
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Quarterly Results: Q3 FY26 revenue declined 2.1% YoY due to headwinds in Research Solutions and Corporate Learning. Conversely, Education Solutions grew ~11%.
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Strategic Acquisition: MPSL acquired Unbound Medicine Inc. for $16.5M, strengthening its medical education footprint with a high-retention (97%) subscription model.
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Outlook: FY27 is projected to be âexceptionalâ. Growth recovery is expected across all segments as AJE stabilizes and business realignments conclude.
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Valuation: Analyst anticipate double-digit organic growth and sustainable EBITDA margins moving forward.
Quarterly-Update-Report-MPS-Ltd-Q3FY26.PDF (962.2 KB)
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I am not a software expert but
One point is there major revenue comes from there access of data privilege of the legacy data with the old major publishing clents this is a short term revenue posture as a long as the data remains in that old legacy without upgrading if that happens 75 percentage of revenue is negatabale
This is from a lay man point of view
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My two cents on the risk of AI related disruption in MPS:
As things stand, we donât actually have full clarity on the economic impact of AI. Frontier model companies are yet to demonstrate profitability. Wide spread job losses across sectors hasnât happened. Companies have even reported cut back on AI spend because they didnât see demonstrable economic value arise out of indiscriminate use. Power and memory bottlenecks are very real, and so is the environmental costs of trying to rapidly scale data centre infrastructure. It is possible that the extent, or rather the speed of the impact, is overestimated at this juncture.
What about product companies like MPS specifically?
In my opinion their fate boils down to 2 things:
Will publishers be able to do it themselves? Meaning will it become cheaper for individual publishers to hire an engineering team, get a premium claude/codex subscription, and create the whole digital infrastructure required to carry out their functions? Theoretically they could, but at least in the short to medium term I donât see this happening at scale.
If not, then the question is will they be able to survive purported increase in competition from upstarts conjuring up products rapidly?
Here Iâm less sure, but I think they will be able to. They have deep domain expertise and long relationships. Unless these new products are exponentially better, or good enough but significantly cheaper, enterprises donât switch mission critical vendors.
What about revenue deflation?
This risk exists in the medium to long term. While MPS has actively moved away from billable hours type of contracts towards outcome-based delivery and even subscription models (especially unbound medicine), there is a component of time and effort based fixed contracts that could shrink in value, affecting both the topline growth and margins.
So then whatâs my strategy here?
MPS is one of my biggest holdings, I have been holding it for 3 years now, and even added in the recent correction. They have done reasonably well in that time, and I donât want to sell in a panic. But I intend to keep my mind open to the possibility that there is a scenario where their business model is not viable in the long term. If we see consistent revenue degrowth with margin erosion, it may be time to exit.
Disclaimer: I am not a domain expert. I would appreciate comments and corrections from people who know better.
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Doctor Sahib if you are not replaced with AI by your patients. Then you also should not replace your general intelligence with artificial intelligence.
Please take it in lighter mode.
You will not let someone take control of processes in your hospital who can hallucinate even 2% of the time.
When AI hallucinate a lot why would some publisher where your whole reputation depends on error free publications let AI control its mission critical processes.
I am not AI expert but think AI being artificial intelligence will keep hallucinating.
Letâs see what future beings in!
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The best quarter in MPS history. Seems like the mark has discounted AI impact and their latest acquisition is paying off. Good times ahead.
This quarter was a large positive surprise after below average quarter.
Hopefully they will keep buying companies at reasonable prices and then keep improving the margins of acquired companies.
Letâs see what future holds.
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