Target: ₹3,112
CMP: ₹2,053.90
In Q2-FY25, MPS reported a revenue growth of about 37 per cent on a y-o-y basis alongside a sharp recovery in the overall EBITDA margins by 739 bps on a q-o-q basis. Revenue growth was driven by strong performance in the Content and Platform solutions, both segments growing at about 37 per cent and about 67 per cent respectively on a y-o-y basis.
However, the eLearning segment remained under pressure, resulting in a revenue growth of around 8 per cent on a y-o-y basis. Margin revival was driven by the successful ongoing turnaround of AJE’s operations into MPS and a strong business momentum witnessed by MPSL across segments and geographies.
MPS has started to deliver on the margin uptick that was anticipated in Q1-FY25; the Company believes that there is still room for margin expansion, which is expected to be witnessed in Q3 and Q4-FY25.
Over the medium term, MPS looks well on track to achieve its topline target of ₹1,500 crore by FY28 without compromising on margins. The company aims to achieve a halfway mark by the end of FY25 itself.
