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    AMAGI

    AMAGI
    Information Technology·12 Feb 2026
    Management Summary

    Amagi Media Labs reported a strong Q3 FY26 with revenue growing 22% YoY to INR 404 crores and adjusted EBITDA doubling to INR 58 crores, driven by broad-based growth across all segments and operating leverage. The company saw robust growth in key operational metrics like content hours and ad impressions, while strategically investing in AI for future productivity gains. However, Q3 revenue growth was impacted by a timing difference in revenue recognition from a top customer, and Q3 EBITDA included one-time seasonal benefits, with a normalized steady-state margin of 10%.

    Highlights

    5

    • Strong revenue growth: Q3 revenue up 22% YoY to INR 404 crores; 9M revenue up 30% YoY to INR 1109 crores.

    • Significant margin expansion: Q3 adjusted EBITDA doubled YoY to INR 58 crores, with margins at 14.3%.

    • Robust operational metrics: 800,000 hours of content (64% YoY growth), 9,000+ deliveries, 13 billion ad impressions (60% YoY growth).

    • Strong cash generation: Q3 operating cash flow of INR 124 crores and free cash flow of INR 118 crores.

    • Strategic focus on AI: Significant investment and opportunity identified for productivity improvements.

    Concerns

    3

    • Timing impact on revenue recognition: Q3/Q4 growth rates appear softer due to a top five customer's revenue being fully recognized in H1 FY26, which was spread across all four quarters in FY25.

    • One-time items affecting Q3 EBITDA: Seasonal strength from holiday advertising flows and accounting recognition contributed to the 14.3% margin, with a normalized steady-state margin viewed at 10%.

    • Concentration risk: Top 10 customers account for 40% of revenue, which management is actively de-risking.

    What Changed2

    vs Q4 FY26

    Guidance items4 → 5 (+1)Risks discussed3 → 2 (-1)
    Key financials

    Metrics

    22

    Periods

    6

    Headline

    2
    • Cash and Investments
      ₹803 Cr
    • Normalized Indirect Cost Base
      ₹220 Cr

    Q3 FY25

    1
    • ESOP Expenses % of Revenue
      8.4%

    Q3 FY26

    10
    • Revenue
      ₹404 Cr
      YoY+22%
    • Operating Costs Growth
      14.0%
    • Adjusted EBITDA
      ₹58 Cr
      YoY+100%
    • Adjusted EBITDA Margin
      14.3%
    • PAT
      ₹31 Cr

    9M FY26

    7
    • Revenue
      ₹1,109 Cr
      YoY+30%
    • Operating Costs Growth
      17%
    • Adjusted EBITDA
      ₹116 Cr
    • Adjusted EBITDA Margin
      10.5%
    • PAT
      ₹37 Cr

    9M FY26 underlying

    1
    • Operating Cash Flow
      ₹47 Cr

    H1 FY26

    1
    • R&D % of Revenue
      23.4%

    Order Book

    medium confidence

    Pipeline

    other

    Amagi's business is NRR based with minimal logo churn, and growth is driven by volume adoption and cross-selling of products.

    "Amagi's business is driven by content volume (800,000 hours, 64% YoY growth), deliveries (9,000+ to 408 locations), and ad impressions (13 billion, 60% YoY growth). Customer additions are accelerating due to market transformation towards cloud and streaming. The company focuses on long-term contracts to de-risk concentration with top customers and relies on NRR and minimal churn for growth."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹6 crores

    Liquidity

    Cash ₹803 crores

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Underlying Q3 Revenue Growth (adjusted)
    25-30%
    		High
    Margin
    Steady-state EBITDA Margin
    ~10%
    		High
    Margin
    Long-term EBITDA Margins (aspirational)
    ~25%
    		Medium
    R&D
    R&D as % of revenue
    Continue to see leverage
    		High
    Growth & Profitability
    Long-term Growth and Margin Trajectory
    Replicate past performance
    		High

    Steady-state EBITDA margin

    next quarter
    CurrentQ3 FY26 reported 14.3%, normalized to ~10%
    TargetMaintain ~10% or show further expansion

    Why it matters

    This indicates the underlying profitability trend, excluding one-time📎 seasonal benefits.

    If you normalize for these, we view steady state EBITDA margins at approximately 10% which we believe is more sort of representative indicator of the underlying profitability in the quarter.

    How to verify

    key_financials.metrics[label='Adjusted EBITDA Margin (Q3 FY26)']

    Risks & concerns

    2
    RiskSeverity

    Revenue concentration with top customers

    Top 10 customers account for 40% of revenue, which management is actively de-risking through long-term contracts. — Management acknowledged

    medium

    Lumpy customer additions and revenue recognition

    The number of customers reaching a threshold scale for enterprise agreements can be lumpy quarter-to-quarter, impacting revenue recognition timing. — Management acknowledged

    low

    Q&A highlights

    8

    “One is if you look at it the market transformation is starting to happen. Then I talked about Cloud Modernization and we seeing acceleration of that trendline of customers wanting to move to the cloud. I think that's a clear trendline that's driving some of the customer acquisitions that you're starting to see number one.”

    Explains the drivers behind increased customer additions, linking it to market trends (Cloud Modernization, streaming growth) and Amagi's platform strategy.

    asked by Vivekanand from Ambit Capital

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q3 & 9M FY26 Financial Performance

    Amagi reported robust financial results for Q3 FY26, with revenue growing 22% year-over-year to INR 404 crores. For the first nine months of FY26, revenue increased 30% year-over-year to INR 1109 crores. Adjusted EBITDA for Q3 FY26 doubled year-over-year to INR 58 crores, achieving a margin of 14.3%, while PAT reached INR 31 crores with a 7.7% margin.

    02

    Operational Metrics Indicate Robust Business Growth

    The company demonstrated strong operational growth, with content hours flowing into Amagi's system increasing by 64% year-over-year to 800,000 hours. Deliveries expanded to over 9,000, reaching 408 locations across 40+ countries. Ad impressions delivered surged by 60% year-over-year, totaling nearly 13 billion in Q3 FY26, highlighting significant volume adoption.

    03

    Strategic Focus on Cloud Modernization and AI

    Amagi continues to drive Cloud Modernization, enabling TV channels to migrate from on-premise infrastructure to a cloud-based software environment. A significant investment is being made in AI, which is seen as a major lever for productivity improvements and expanding the total addressable market. The company is already engaged in design partnerships and proof-of-concept initiatives with customers for AI-driven solutions.

    04

    Revenue Recognition and Margin Normalization

    Q3 FY26 revenue growth was influenced by a timing impact, as revenue from a top five customer was fully recognized in H1 FY26, unlike FY25 where it was spread across all quarters. While Q3 adjusted EBITDA reached 14.3%, management indicated that a normalized steady-state margin, excluding seasonal and one-time📎 accounting effects, is approximately 10%. Operating costs grew at roughly half the rate of revenue, demonstrating operating leverage.

    05

    Customer Acquisition and Long-term Contract Strategy

    Amagi added over 40 customers in the last year, driven by market transformation towards cloud and streaming platforms. The company emphasizes an NRR-based business model with minimal logo churn. A strategic focus is on securing longer-term contracts with top customers to de-risk concentration (top 10 customers account for 40% of revenue) and ensure predictable, secure revenue streams.

    06

    Capital Allocation and M&A Outlook

    The company reported INR 803 crores in cash and investments on its balance sheet. Capex for Q3 FY26 was modest at INR 6 crores, contributing to a free cash flow of INR 118 crores for the quarter. While Amagi maintains an active corporate development strategy and explores M&A opportunities, no specific acquisitions were 'in the bag' this quarter, with management indicating updates in future quarters.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.