Are MPS latest results good or bad?

MPS Limited's latest financial results for the quarter ended September 2025 reveal a notable performance characterized by significant growth in net profit and operational efficiency. The company reported a consolidated net profit of ₹55.44 crores, reflecting a year-on-year growth of 57.32%, which indicates strong momentum in profitability compared to the previous year. This growth is particularly impressive when juxtaposed with the prior year's profit growth of 17.35%.
In terms of revenue, MPS achieved net sales of ₹194.44 crores, marking a year-on-year increase of 9.42%. While this growth rate is lower than the previous year's 37.15%, it still demonstrates the company's ability to expand its top line in a competitive environment. The operating profit margin (excluding other income) improved to 31.10%, which is the highest level in seven quarters, showcasing effective cost management and operational leverage.

The company's operational metrics also highlight a robust performance, with the operating profit (PBDIT) rising to ₹60.47 crores, a significant increase from the previous quarter. This reflects MPS's capacity to convert revenue growth into enhanced profitability, as evidenced by the substantial improvement in both operating and PAT margins.

Additionally, MPS Limited's balance sheet remains strong, with zero long-term debt and a net cash position, which provides financial flexibility for future growth initiatives. The company continues to demonstrate high capital efficiency, with return on capital employed (ROCE) reaching 43.69%, above its historical averages.

Overall, MPS Limited's latest results indicate a solid operational performance, marked by significant profit growth and effective margin expansion. However, it is important to note that the company has experienced an adjustment in its evaluation, reflecting the market's perception of its valuation relative to its operational achievements.