MPS Limited ($MPSLTD)

Ladies and gentlemen, good day, and welcome to the Q4 FY '26 Earnings Call of MPS Limited. [Operator Instructions] 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.

Thank you so much. Good evening from Singapore, and a warm welcome to our Q4 and FY '26 earnings call. Today on the call, I have with me Pratna Agarwal, CFO of MPS; Sukhwant Singh, our Chief Delivery Officer for the Research Content business; David Goodman, our Chief Growth Officer; Soma Badri, Senior Vice President and Business Head of Liberty Global, which is our Corporate Learning division. Pratna joins us from our corporate office in Noida, Sukan from Noida as well; David from Austin, Texas; and Soma from Bangalore. Pratna will kick us off with a review of our financial performance and also share the robust outlook for FY '27. Sukhant will then update you on Research Solutions. David will follow up on education, which has become an increasingly important pillar of our overall story. Soma will then discuss the progress in Corporate Learning. I will come back at the end of the opening section to share a few strategic remarks before we open the call to questions. Let's get going. Over to you, Karan.

Thank you, Rahul. Good evening, everyone. FY '26 closed as the most profitable year in our company's history. Group revenue for the year was INR 768 crores, up 5.7% over FY '25. EBITDA was INR 236 crores, up 11.8% with the EBITDA margin expanding to 30.7% Profit after tax grew 16.3% to INR 173 crores, and the basic EPS came in at INR 102.1, a company record up 16.3% year-on-year. Looking at the composition, excluding AGE, FY '26 revenue grew 15.4% to INR 646 crores. The Research segment EBITDA margin expanded 330 basis points to 39.9% for the year and Education delivered EBITDA growth of 42.6% year-over-year. Q4 specifically was the strongest quarter for FY '26. Revenue grew 12.7% year-over-year to INR 205 crores. EBITDA grew 20.5% to INR 67.5 crores with the margin expanding to 32.9%, indicating operating leverage at work as revenue growth converted to margin expansion. PAT of Q4 was INR 47 crores, sequentially up 32.5% and Q4 EPS was INR 27.72. On exceptional items, FY '26 saw a positive contribution of INR 7.64 crores. The details are in the financial results released on Friday and the items do not impact the underlying earnings trajectory. On the balance sheet, total cash and cash equivalents stood at INR 13.75 crores as of 31st March '26, with borrowings of INR 40.25 crores from the facility drawn for the acquisition of Unbound Medicine. Return on capital employed for FY '26 was 38.2%, broadly in line with our historical capital efficiency profile even after taking the full balance sheet impact of unbound. Looking ahead, based on our current run rate and operating plan, the company is expected to comfortably cross INR 300 crores in EBITDA in FY '27. This implies a 3-year EBITDA CAGR of approximately 21% from FY '24 to '27. And this is built bottom up from the operating plans of each business segment. The guidance also reflects that we are already in flight and this is not a step change we are asking you to believe. I would now hand it over to Sukhans to discuss the developments in our Research Solutions business.

Thank you, Pratna. Research Solutions anchored our portfolio in Q4, contributing 58.3% of total Q4 revenue. Q4 reported revenue was INR 120 crores, up 7.6% year-over-year. Excluding AJE, the organic core of Research Solutions grew 23% year-on-year. Q4 EBITDA was INR 50 crores at a 41.6% margin with EBITDA growing 24% year-over-year. For the full year, Research Solutions delivered INR 464 crores of revenue with EBITDA margin expanding 330 basis points to 39.9%, as Pratna described. Excluding AJE, organic research revenue grew 17% in FY '26. I want to walk you through the segment the way we now think about it, not as a services business, but as an AI-first knowledge solution company serving the research economy. Our business has now 4 integrated product layers, each with measurable progress in the quarter. The first layer is the trust and integrity layer. DigiCore, our AI-enabled production ecosystem is now deployed at scale across our top-tier knowledge clients. Research Integrity Check, RIC, as we call it, was named as a top innovator at the STM AI Innovation Day in 2025. RIC delivers AI-led detection of paper mills, identity fraud and image manipulation, and is integrated with leading third-party tools across the integrity workflow. The bottleneck in research today is no longer generation. It is verification. This positions us directly in the fastest-growing control points in this quarterly workflow. The second product layer is AI author services, A digital and Rubrik have cumulatively processed over 1 million manuscripts. Our controlled trial work shows a 52% manuscript acceptance lift versus the industry baseline of approximately 32%. This is a measurable AI attached revenue line, not just a marketing claim. The third is the pre-acceptance GEO office. This is now the standout margin business insight research solution with FY '26 revenue growing meaningfully on the back of 3 large knowledge organization engagement. EBITDA margin in this line is well above the segment average. Scholar finder and Manuscript Expert, our internal AI tools are how the team has scaled volume without proportional headcount growth. The fourth layer is the platform stack and MPS labs HighWire and DigiCore Pro together form the hosting and the production backbone for our largest knowledge clients. Think 365, the platform we have spent 2 years building is now in live production and gaining commercial traction. MPS Labs, our 200 engineered AI R&D engine continues to create reusable capabilities that compound across all 4 layers at 0 marginal cost. Heading into FY '27, our priorities are sustaining the Q4 operating leverage as new transitions reach steady state, scaling DigiCore Pro and RIC adoption across the renewal cohort and continuing the JO office trajectory through a comprehensive retention plan we have put in place, the thread across all of this is same. We are positioning MPS where AI cannot afford to be wrong. I want to hand it over now to David to discuss our Education Solutions business.

Thank you, quan. Hello, everyone. Education was the segment that delivered scale in FY '26. Q4 revenue reached 60 crores, up 30.5% year-over-year. For the full year, education revenue was 209 cores, up 36.3% excluding the unbound contribution, organic education revenue still grew 28.6%. EBITDA for FY '26 was 82 crores at a 39.2% margin. with EBITDA growth of 42.6% year-over-year on a reported basis and 38.6% organically. The threat underneath these numbers is the same one that Quantas described in research. AI Personal Solutions applied here to the education and health care ecosystem. -- forces drove education growth in FY '26. First, our AI-enabled content and production work. We expanded engagements with several of the largest U.S.-based knowledge organizations across K-12 and higher education, converting earlier programs into multiyear multiproduct engagements. Manpower efficiency improved through the year as AI system production moved from pilot to core delivery. Second, our accessibility and learning services line. The work we do here, AI assisted accessibility production at scale, including more than 30 million auto-generated accessible media assets delivered annually has become a meaningful high-margin business. FY '26 revenue roughly tripled versus the prior year, anchored by 2 large new accessibility engagements with leading global knowledge organizations. Third, the unbound Medicine acquisition, which closed on February 9, 2026. The -- the first 50 days in our group delivered 11.78 crores of revenue, approximately 19.6% of Q4 Education Solutions on a partial quarter basis. Headcount transition cleanly into the consolidated entity. The integration thesis is intact. Unbound gives us an institutional foothold in medicine and nursing, a recurring revenue platform with strong renewal economics and a natural cross-sell counterparty for existing clients. The platform brings what we call unbound intelligence, a knowledge engineering layer that turns trusted medical IP into AI products that do not illucinate. It is exactly the kind of AI economics we are building toward across the company. Heading into FY '27, we have a strong pipeline across our largest customer relationships with a particular focus on extending into international knowledge organizations and continuing to scale the Accessibility business. The combination of organic growth, the unbound integration and a healthy forward pipeline gives us conviction underneath the FY '27 guidance partner share. I would like to now hand it over to Soma to discuss the Corporate Learning business.

Thank you, David. Good evening, everyone. I appreciate the opportunity to join the call today. Corporate Learning was the segment that absorbed the most stress in FY '26 and is the segment most clearly turning a one. Q4 revenue grew 2.4% year-over-year to INR 25.5 crores, the first positive print of the year. Q4 EBITDA was INR 6.7 crores at a 26.3% margin, up 55% sequentially. FY '26 revenue closed at INR 96 crores, down 16.5% versus FY '25. I want to name that, honestly, the year was recent. Q4 was the inflection. The trend through the quarters is what matters, a sharp sequential recovery in EBITDA, a leaner cost base, and a clearer commercial focus across the segment. The work to get here was deliberate. And here are the 3 structural levers we executed through the year. First, portfolio rationalization. We walked away from low-margin compliance work that was diluting both the mix and the brand. Average price point and gross margin both saw a healthy improvement as the legacy book taper down. Second, the core Flex talent model that scales cost with revenue rather than ahead of it. Headcount in the segment is down approximately 32% year-on-year on a much sharper cost base. Third, a deliberate shift towards higher value, AI, AR, VR and simulation led build. Bridge AI, our multilingual translation engine is now in active deployment with enterprise customers. AI-enabled chatbot, role and simulation-led experiences are now falling rapidly as for learning inhibitors. This is where the segment is moving, and it is where future value creation and margin expansion will increasingly reside. Q4 close with the strongest order book of FY '26. We added new entrants across our top customer relationships and AI-led wins continue to answer the new pipeline. Deliberate integration into our unified global structure is on plan, and the segment is entering FY '27 with a clearer cost base and a sharper commercial focus. Turning into FY '27. Our focus is sustaining the Q4 exit margin into the run rate, scaling AI-led delivery as the dominant mix and completing the integration of the 3 legacy entities into one unified liberate global brand. The base is ready. With that, I would like to now hand it over to Rahul to conclude this opening section.

Thank you, Soma, and thank you for the rich updates team. FY '26 has closed as the most profitable year in our company's history. INR 236 crores of EBITDA, INR 102.1 million of EPS, both records both delivered while we acquired Unman Medicine, consolidated 3 legacy entities into Liberate Global and absorbed a onetime regulatory charge through the P&L. Q4 alone delivered INR 67.5 crores of EBITDA at a 32.9% margin. These are not numbers you arrived at by accident. There what happens in an operating system that was reset back in Q3 has been given 2 quarters to compound. I want to step back and frame 3 thoughts before we move to the questions section. First, on AI. We are running NPS on the principle that AI and our products should show up in revenue, not in slides. DigiCore and Research Integrity Check are deployed at scale across our knowledge clients. AJE Digital and Rubrik have processed over 1 million macros with a measured acceptance lift well above the industry baseline. The Unbound intelligence platform is a knowledge engineering layer that turns trusted medical IP into AI products that do not hallucinate. Inside corporate learning, Bridge AI is scaling multilingual translation across enterprise clients, and our AI role play and simulation work is delivering. The thread across all 3 segments are the same. We sit at the layer where AI cannot afford to be wrong, where every fact must be sourceable every recommendation defensible and every output trusted. That is a structural position of MPS now, an AI-first knowledge management company and that is where the FY '27 numbers come from. Second, on FY '27 itself, Prathana has shared the guidance, and I won't repeat it. What I want to add is the conviction under the number. The INR 300-plus crore EBITDA mark is not a stretch target. It is a number we have built our operating plan around. The work to get there is not in front of us. It's already in flight, unbound integrating into a full operating year research compounding on the operating leverage you just heard about from Sean. Corporate Learning continuing the turn of the Q4 exit margin Soma described. education building on a year where the organic business grew 28.6% even before the bolt-on of unbound that David described. Finally, on capital allocation, because I know that question will come. Our principle has been simple and consistent for the last 7 years. Capital earns its keep within 12 months or gets returned to shareholders. That principle has produced more than INR 650 crores of cumulative cash return to shareholders between FY '19 and FY '25, and a payout ratio that has been among the highest in our industry. [indiscernible] FY '26, the Board has chosen not to recommend a final dividend. The reason is straightforward. We've deployed capital into inbound in February, we're carrying a hyperactive M&A pipeline and the deployment opportunity in front of us exceeds the cash in hand. The principle has not changed. The cycle has. Distribution resumes and the deployment cycle closes. The 7-year record stands at the evidence that we do return capital when we compare it to work. We are entering FY '27 with more conviction in this business than I had any point in the last 24 months. The portfolio is in better shape. The leadership team is steadier and the operating discipline we built through the second half of FY '26 is now the run rate, not the project. With that, let's open the call to questions.

[Operator Instructions] We'll take a first question from the line of Navid Virani from Bastian Research.

Hello, am I audible?

Not clear. Can you use your handset more, please, Navid?

Sure, sure. Is it better now?

Yes, please go ahead.

Also for providing a more nuance picture of MPI. So first one was on the slide that you presented in the presentation saying that we just have a 5% market share of the total serviceable market share that you have? So the headroom that is now presented shows huge room to grow. So just wanted to understand how are you positioning how are we positioned, a, from the right-to-win perspective? And also, what are the capabilities that are kind of even in the working depressor lacking more that will help us reach there. That's my first question.

Thanks, Navin. You're right. The headroom is enormous. I think the question is whether MTS its position to take a meaningful share of that headroom. I'd like to point out a few things in terms of why we believe we have a right to win and why we feel that we can capture a meaningful share of it. First, like I shared in the opening remarks and other share as well, our positioning is now of an AI-first knowledge solutions company. And the reason for that is we sit at a layer where AI simply can't afford to be wrong. That position is a defensible position and ends up being a smaller competitive set than the commodity layer of generic AI models. Second, the platform stack, right? So we talked about high Vire,65, rigs grid I, the platform that come with Unbound and of course, the core MPS platforms, which is DigiCore. This integrated portfolio has very few competitors that can match it. goes from an individual offering perspective, but also from a portfolio perspective. It's taken us years to build such a portfolio, replicating something like this potentially even takes longer than it takes to build it. The third is we've been talking about MPS Labs for the last few years. There are over 200 engineers that are dedicated to building AI and infrastructure and the focus for us really is that the infrastructure compounds across each of the segments, research, education as well as corporate at very little marginal cost. In my mind, that's not a feature. That's a structural moat for the company. Finally, customer relationships, you'll note that the number of relationships this past quarter have grown as a result of the unbound acquisition. We are and continue to deliver to the top tier of global knowledge organizations now for multiple decades. Over time, those relationships have compounded. We're not pitching [indiscernible] -- making cold calls to accounts. We're expanding within large accounts in our industry. Of course, we're not going to make this big leap in 1 year. It's going to take us a few years to expand every year. And of course, the hope is that as time progresses, we continue to compound. The right way possibly to read this is, how do we get first from 0.5% to 1%. How do we get from 1% to 2%? And really, the focus is being through partners to our customers. working from their business problem backwards using all our IP and knowledge and expertise to solve those business problems and expanding within these deep customer partnerships rather than chasing coal partnerships.

Second one was on the guidance, which you just provided. So INR 300 crores EBITDA for FY '27 is great. But what I wanted to understand was the market. So the larger picture was that we wanted to reach a INR 1,500 top line by, let's say, FY '28. So just wanted to have your thoughts on -- is that number still in the line of sight? Or is there any change in the way we see it?

No. So absolutely intact in absolute line of sight. I think the reason we are so laser focused on FY '27 and crossing INR 300 crores here is because we don't want the home stretch, which is FY '28 to be totally unreachable. And that is why, of course, we -- our plans go until FY '30. But as of now, our focus really FY '27 and FY '28. Let me give you the 2 numbers slightly separated, so that -- because they often get completed. So the INR 300 crore plus EBITDA mark for FY '27 is an operating commitment that Prarthan talked about, if you remember in the opening remarks, it's built bottom up. It's organic. It does not include any new acquisitions than what we've already done. So anything that will be added in addition to this will be over and above INR 300 crores. The ambitious vision was always a combination of organic momentum and selective -- very selective, tight inorganic activity. I think Unbound is possibly our -- one of our big proof points that we can execute inorganic piece with discipline. So here is a business, there's a very high recurring revenue theme here is a business with a very stable customer base, highly high renewal rate, and we have not overpaid for it. Of course, the other building blocks are the research business compounding, the trajectory that we're seeing in the Education business, we expect that to continue. The corporate learning business is now turning that Soma described. So all 3 segments are firing are on track. So the ambition of Vision 2027 in FY '28 has not moved. The parts is becoming clearer, especially as we see FY '27. So absolutely intact, and we'll share a tighter guidance on FY '28 either at end of Q3 or end of Q4 like we've done right now.

We'll take our next question from the line of Ravi Naredi from Naredi Investment.

Sir, any more acquisition immediately on card and whatever we acquired, we have already paid for [indiscernible] ?

So for Unbound, whatever we have acquired hasn't paid for. There are some small amounts pertaining to closing amounts, but very insignificant. So -- but mostly all of it has been paid for. Unbound is what I would call close and now integration phase. Overall, our pipeline is very active. It continues to expand. Today, of the overall pipeline of 35 companies, I would say, are fairly advanced. Two of -- 5 are very live, 2 of which are at an advanced stage and would fit very well in the existing segments, the other 3 as time progresses. One of the opportunities presently the most advanced in the pipeline is a higher ed and online learning carve-out in the Western world, strategically meaningful. It is a capability as well as expands us into some adjacencies. A second -- another opportunity is a cross-border asset, again, in the same business. The strategic rationale there is a capability expansion within the workflows that we're already involved in. We're also evaluating a very transformational claim in the broader ecosystem that potentially could also help us enter into an adjacent market. Of course, given that this is price-sensitive information, that's all I can share. I know it's not -- it was not very descriptive. But the goal really is to apply the same discipline we applied to Unbound. The same return threshold we've always had the same integration economics, the same strategy lens. And the most important part is that we're focused on looking at growth assets, where the moat is defensible. As you know, the market and the world today is increasingly disruptive. So we want to make sure what we acquire is defensible, also sensible valuations and where there is a clear fit either from a capability perspective or a platform perspective or a customer agency fit perspective in terms of what we're building. And of course, as always, when there is something meaningful and material to share, you'll hear from us in ordinary course. But that's all I can kind of share at a high level.

Nice supply, detailed reply. Sir, financial year, '27, what EBIT combined margin we [indiscernible] INR 300 crore?

So overall, I think we'll again be in the same range. So probably in the -- somewhere in the 30% to 35% EBITDA range, it's hard to give these numbers because we also have competition that's not listed. In fact, most of our competition is not listed, they get the advantage of hearing everything from us. So at this point, all against [indiscernible] share is been the 30% to 35% range. And of course, as you know, that as revenue grows, our margins typically expand.

Right. One last small question.

I request you to join back the queue, please, as we are participants waiting for retail. Next question is from the line of Arjun Goel, an individual investor.

And congratulations on the quarter and the year. So firstly, I wanted to know if you can share what were the financial numbers for 2026 for unbound, -- like what is the revenue, EBITDA, just headline numbers? And how do you expect it to move in 2027? Just headline numbers is good.

So Patna, I'll come to you. If you can just share ranges. Obviously, we don't want to give exact numbers at this point. Any ranges on revenue? And any ranges on margin? You can talk historic and I can talk future. So why don't you share some historic numbers on the revenue ranges and the margin, and I can talk about the future.

So I think Rahul, on the revenue range because we acquired on tenth February, so this was a 50-day consolidation for us. So the revenue was in the range of INR 11 crores to INR 12 crores, and the EBITDA margin was around, I think, 18.5% to 19%.

Yes, for those in I'll have final. Prana,you can give like a monthly historical monthly run rate. and an EBITDA margin for both and then I'll help with the future.

Okay. So the historical monthly run rate was close to USD 700 to USD 800 per month. And the EBITDA margin, as I explained, was in that range only 18% to 19%.

Yes, we expect and we're expecting to go to 750 to 900 a month in FY '27, depending on the month, there is some seasonality. So 750 to 950 per month depending on the month. I think the first couple of quarters will continue to operate at that same level of margin, maybe -- and the goal is to exit at somewhere between 25% to 30%. Now whether that exit -- whether it happens in Q2 or Q3, time will turn -- but -- so we start at the 750 to 950 in revenue started that 15% EBITDA margin and exit at an EBITDA margin of 25% to 30%.

And my second question, Roust's more of a broad-based question that in the last 3 or 4 months, every other week, we've been seeing updates coming out from AI companies. And it seems to hit one industry or the other. In fact, I think even [indiscernible] was one of the systems. So my question is that is there any way to know that there will not be an update in the future that strikes at the heart of how we make money. So do you have any comments regarding the same? Because frankly, it's a little scary, the way we read the news and the reaction to it. So any comments?

The first comment is, my job is to not be scared, right? My job is to plan and build a strategy and my team's job is to execute on that strategy. So this question is probably the most important question, any business in our space should be answering today. So I'll give you a very honest CEO review. What's -- the way I look at it, what is happening is a bifurcation of the market. So on one side, AI, again, I'm especially talking about our markets, I'm talking about -- I'm not talking about the world. I'm talking about our specific market. So on one side, AI is going to super compress the price of commoditized production work. Having said that, that work is now going to be placed with very few scale suppliers that provide the same reliability with automation and so things like basic copy rating, page-based content, generic instruction, very flat in structural design. Anyone whose business is hyper-concentrated there. and has not got their act together, like we have done at NPS with MPS Labs is going to feel severe pricing pressure, but also severe business relevance special. On the other side, the demand for what we call trusted AI deployment inside high stakes knowledge workflows, so think of medicine, nursing, score publishing, regulated learning accessibility, there the demand is going to expand sharply. The market there is not shrink. The market for us then is not shrinking. The way I see it the market is splitting. It's splitting into 2 parts. And from my perspective, we've been positioning MPS now at this for 2 to 3 years. The reason we keep saying AI first knowledge management, and we keep repeating it over and over again, is because they're talking about the layer where AI simply cannot afford to be wrong. Think of a nurse sitting with the patient needs knowledge and information in real time. She cannot afford to get it wrong because if she gets it wrong someone dies. So that's exactly the size of split where the demand is concentrating. Digital Pro, research integrity, AGE digital, Unbound [indiscernible] , Bridge AI, these are not pilot projects. These are AI products pitched at these hypersensitive use cases and then inside our revenue today. Now let's talk about agenetic deployment. So you spoke about all the genetic deployment announcements from the foundation providers. The way I look at it is I see the indent tailwinds, not headwinds. Most [indiscernible] for the kind of work that we do. As these models get better as enterprise agents become more capable, the gating constraint moves from the model capability to trust, it moves to verification. It moves to domain context. It moves to integration into existing workflows. So the foundational models are always going to struggle in the last mile. So whether I'm inside a medical reference product, whether I'm inside a peer review integrity whether I'm in side and accessibility production line, that last mile is where MPS sits. That last mile is where our platform stack, our domain expertise, our customer relationships, they will compound. So by segment over the next 3 years, just to go in a more structured way, if you think about it. In Research, which is our largest segment now about 55% of our revenue hopefully the demand for integrity and verification, as [indiscernible] was talking about in his opening remarks, is rising sharply as people are seeing lots of fake papers, paper mills and AI-generated submissions are multiplying. The bottleneck in research is no longer generating the content. The bottleneck is the verification. Is this content real? Is this research real? And that's where MPS VI, we are in the verification business in research. On the education side, which is supposed to be about 35% of our business, demand for trusted medical and instructional AI products grows as institutions relies, I can't depend on general purpose chatbots I can't bring them into clinical and learning context. I need something more specific. That's where Unbound intelligence comes in. Similarly, in corporate learning, AI let simulation, multiline translation, all of these things like role play -- this will become the default and which is exactly where we are sitting. So net-net, as I say, sometimes in India, we expect AI to be materially net additive on the demand side. And having said that, what needs to follow through on our side is seamless , not just on the delivery, but to the AI in revenue principle. The risk for us is not that will AI displace us. The risk would be standing while the market splits and we're not standing still.

I request you to join back this you, please -- next question is from the line of Sharat Cut from Sun Wealth Management. Sorry, can I use your microphone more, please? Your audio is not clear.

Is it audible now?

Yes, please go ahead.

My question is regarding Slide 14, which is resale segments performance. Can you just let me understand the reason for dipping EBITDA margin and the spike in AE headcount and second question is with regard to AG, has a rundown in the AG model will completed? Or is there any tailing effect in FY '27. And what would be the growth drivers -- and the third question would be regarding the FY '28 target of around INR 500 crores. Since FY '26, we reported a below average run rate revenue growth at around 6%. So what would be the growth drivers to achieve the target given higher growth rate. These are my questions.

Thank you. So I'll come to -- I'll pass on the baton to Christine and Sukin. So Christine can talk about the AE side as well as one is about the pruning and what's going on with the pruning? And then Sukan can talk a little bit about what are the future prospects in research. But quickly, and then I'll talk about the third question, which is on Vision '27. So the first question was a couple of data points. So the headcount has increased if something -- headcount has increased is something you said. My understanding is all the headcount has been offshored to India. I don't think we've offered ex A -- sorry, A stand-alone headcount. So all the AG headcount has been offshore to India, the research headcount has grown because of anticipated growth, and that is why ex AJ, there's some sluggishness in the Q4 margin profile, of course, sluggishness is relative because it's still a very high-margin business. But we're expecting some significant growth in '27 in the research business, both in volume and value terms. And that's why ex of AE, the margin is where it is a, it will get unlocked. So it's more and more a timing thing. Yes. So Christine, and so Joan, over to you. I'll come back to talk about Vision 2027.

Sure. So I'll just talk about the growth levers on the AE and pre acceptance side. So like I have mentioned the tuning is essentially behind us, and we are now signed for growth in FY '27. The plan is twofold essentially. On the B2B side, we saw more than 90% growth in pre-acceptance services, and we expect for that demand to scale even further. Our delivery model is built for this with technology at the center of both service delivery as well as workflow management. Second, on the B2C side, we are a leaner, more agile delivery model at the moment, which means that AE is now positioned to focus on growth. and that will come through to -- in others higher value services and more competitive benefits through portfolio expansion, market diversification and deeper publisher and institutional partnerships. So yes, while the tuning is behind us. What we have left is the high-value core of auto services, premium editorial language editing and AIS. So the base is now more margin accretive rather than a drag and growth from here comes from 3 places: first, premium tiers in Auto Services, where authors are willing to pay for quality and turnaround time. Second, AI-driven productivity that we are embedding in the workflow. Part of that benefit, we will pass on to the client and part we will retain as a margin. And third, cross-selling to our corporate publisher relationships which is opening up entirely new revenue lines and also supporting expansion into underpenetrated and rapidly growing research ecosystem, such as China. [indiscernible] over to you.

SP1 Thanks, Christine. So Christine mentioned about the AI-driven productivity. I'll just like to add on to those pointers. So the our push towards becoming AI-first knowledge management company also gives us tremendous benefits on the editorial and production side, especially around AI-enabled workflow transformation. We see this as a huge opportunity to evolve from a production services set up to a more strategic end-to-end workflow and publishing infrastructure partner which we believe is a much larger long-term opportunity. Also, as Christine briefly mentioned, we are also trying to push for growth in areas like China, where it's high-growth research ecosystem. We have already signed a few MOUs and initiated operations with some of the publishers in China. So our overall strategy is to combine strong relationship with growth publishers, with local partnership across new territories like China. And this also helps us strengthen our reach within China also helps us help global publishers strengthen their outreach in China. So we believe that these initiatives together can become very meaningful long-term growth drivers for the business over the next several years. Back to you, Rahul.

Thanks, Christine. Thanks [indiscernible] I think Sequans is very excited about China, but it's not just a China place an APAC play. So Japan is another market that I'm taking a lot of personal interested sort Singapore. So APAC in general, is a market that we're trying to expand in a big way. So more news on that as we progress. So overall, just to summarize, a cleaner base with AG, a more focused portfolio and frankly, a much easier business to grow rather than [indiscernible] base we had 2 years ago. What we should also look at is in research, where is the growth coming from? It's not coming from doing more of the same work. It's coming from the 4 product layers that Sukan talked about, integrity. AI Auto Solutions, the JE office and our platform stack. Each of those layers carries a better margin profile compared to the legacy services book, which never did. And each of these is growing at a fast clip. In terms of FY '28, like I was sharing previously, we have a very tight guidance either at the end of Q3 FY '27 or Q4 FY '27 like you've done for this year. But very much that line of sight at similar margins is very much line of sight and an impact.

We'll take our next question from the line of Shirish Limbach.

Am I audible now?

Yes, please go ahead.

Yes. My question is regarding the Corporate Learning division in the investor presentation on Slide 16, you have mentioned that investment in digital multimedia and interactive solutions supporting the higher value work, right? So I want to understand that is that the work profile has changed how kind of project we do has some change, basically, some color on behind this investment.

Sure. So I'll bring Soma, in to talk about the corporate learning business and specifically the investment in digital, et cetera. Go ahead, Soma.

Yes. So thank you. That was a good question because it really goes to the heart of why FY '26 looked the way it did. Just going back a little 2 years ago, our revenue was largely dominated by compliance content, instructor-led sort of materials and design which were high volume, low in margin. And then it is rapidly commoditizing the whole mix. That book was deliberately to run off. Now what has replaced it is a fundamentally different need of work that we are doing. Our deliverables are no longer a simple learning output or simply force as we would call it but a higher order learning experience that we are embedding directly into the enterprise workflow, more like the performance enabler as we call it, for our client partners. Bridge AI is in active deployment for multilingual translation at enterprise scale, one of our, I would say, flagship products. The AI chatbots, the AI roll plays, simulation-led experiences, all of them are being delivered and delivered at a ER, which is augmented reality, virtual reality programs are live for the technical and field training areas. So the consequence of all of this shift is very structural. These are higher value for engagement, longer program cycles, stickier customer relationships and a margin profile that the legacy book simply could not support earlier. So the Q4 improvement and the FY '27 plan that we see our board built on this new work profile and not a recovery of what existed before. But the margin expression of a business that has already transformed what it is selling. So this is where we are headed to.

Lastly, I just want to ask is there has been a significant increase in the number of clients build but a drop in per client revenue, right? So I know already you have mentioned in the IP that this is due to the unbound medicine. But would you provide something more on this metric?

Sure. I can take that. So like you said, the mechanics are obviously what do you expect from the unbound integration as you integrated inbound we've added more customers. But as you rightly pointed out, is the texture beneath the number, not the number itself, that's important. So if you look at our traditional customer base in research and education, it's been relatively concentrated with a set of large knowledge organizations as we call it. So typically, this is associated with higher revenue per account, deep relationships with the account director is performing the role of a fulcrum Unbound brings a fundamentally different customer shape. It's a broad institutional base of medical schools, nursing schools, hospitals, academic libraries -- so many, many more accounts smaller, but many more, but also with a very high renewal economics and low concentration risks. So when you average across our overall combined base, per customer revenue declines. So in my view, that's arithmetic, it's not degradation. None of our anchor clients are bidding less for example. We simply added a very long tail of smaller recurring, what I'd like to call a high-quality accounts top of this. So my 2 takeaways are: one, customer concentration is materially lower than it was 12 months ago, which, in my view, is improvement in quality of revenue. And then second, given the renewal business model and the economics behind that business model, it gives us a much more predictable forward revenue than other business models. So my view is that the metric is moving in the right direction, even though the headline ratio is only a [indiscernible]

We'll take our next question from the line of unit Singh from Countercyclical Investments.

Sir, my question again would be regarding the growth guidance of INR 300 crores EBITDA. So INR 300 crores EBITDA from inorganically would mean about INR 900 crores to INR 1,000 crores top line. But historically, we have seen that most of our growth has come from inorganic acquisitions. And given that FY '26, we also must have experience ForEx gains or numbers were largely -- I mean lot I mean if we look at constant currency, you can correct me if I'm wrong with that. So in your in your assessment, what's the one most high priority area or segment or geography where the lion's share of delta will come from? From -- so about INR 65 crores EBITDA delta. So which is the area where the lion's share of delta will come from? And what are -- what is the one major risk in achieving our target of INR 300 crores in your assessment?

Yes. So I think -- so the constant currency is not correct. So maybe we can take that off-line. But in terms of the guidance for FY '27, as you note, we've always been very conservative on guidance. In fact, often have not shared guidance. The few times we've shared it, we've comfortably measured. So I can't remember when I guided this, but I think we said this year will comfortably surpass INR 100 crores in EPS. And remember to that point, someone said, "Oh, that's easy. What's the big deal, right? So that's typically in the nature of the guidance. And this guidance is similar. You've said comfortably past a few times we've gone with a number that's built ground up as Prarthana described. So this is not something that just got built by corporate and everyone has to execute on it. This every single customer team, every single business unit has built this ground up, and that's where this is coming from. In terms of proportions, I think, again, ballparking here will probably be off a little bit, but I think FY '27, while it's always hard to -- it's hard enough to share a guidance, not to split the guidance I'm very happy if we beat our guidance, and that's really what I'm focused on is the headline number. But because you're asking this intellectual question, how do we split it, I'm answering it, but I'm not attached to this answer. So I'm more focused on the top number, which is over INR 300 crores in EBITDA. So what I would say is search would be about 55%, education about 35%, corporate about 10%. So that broadly when you work that backwards, you'll get an answer, which is -- this is simply because of its scale, will continue to compound and have that effect on the numbers. Also, it is one of the most profitable lines of business as well. So the search continues to compound. Education is on a growth trajectory now, knock on wood for a couple of years, we're expecting that trajectory to continue. And of course, we've thrown some gasoline on that with the acquisition of Unbound. And finally, as soon was describing the Corporate Learning businesses finally taking a turn and we're expecting a stronger FY'27. In terms of risks, I don't think MPS is facing any unique risks that would pertain to MPS alone, we do exist in a shifting geopolitical environment. You and I wake up to the same unique news every day. So I don't think there's anything in this business plan that falls apart unequally for MPS. But anything geopolitical, macro in nature, like we saw with the pandemic, for example, we recently seen news around -- there's been some memos putting around work from home and other guidance from the government. So hopefully, it stays in guidance and encouragement. Although working from home for us is a normal and in fact, it has improved margins. So nothing in this plan that affects us uniquely as MPS. But yes, of course, if there's some major macroeconomic or geopolitical event that shakes up the entire industry or the die economy, then of course we will adapt. And we've historically adopted better than most. So I count on MPS, our team, our culture to adapt and be better responsive to this kind of external threats. So yes, that's the answer.

Thank you. Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference over to Mr. Rahul Arora for closing comments. Over to you.

Thank you again for your active participation in the call today. As usual, the questions were sharp, on point. And your outside in perspective, I always say that the outside perspective really brings something that we deeply, deeply value. It also helps us to kind of step back and see things more clearly. See Anglos more clearly, especially on the last question on risk has definitely got me thinking. I want to thank all of our stakeholders, our customers, our employees, our partners, our long-term shareholders. All of you together have provided a lot of steadiness. You've shown us through what I'd call FY '26 a year of meaningful transition. So FY '26, as I said to the team internally is, we proved that the operating system works, everything the guts and the plumbing work. FY '27 is the year we compound. Thank you, and we look forward to your continued partnership.

Thank you. On behalf of MPS Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.