Amagi Media Labs Limited — Q4 FY26 earnings call

Call held 21 May 2026

Management summary

Amagi Media Labs Limited delivered strong Q4 and FY26 results, with significant revenue growth and a return to PAT profitability at scale. The company demonstrated robust operating leverage, driven by strong net revenue retention and growth in enterprise customers. AI commercialization is progressing with their NEWSPULSE product, while management acknowledges Q4 gross margin compression as a temporary 'speed bump' offset by volume tailwinds.

Highlights

  • Revenue of INR1,506 crores in FY26, up 30% YoY (23% CC growth), with Q4 revenue up 29% YoY

  • PAT profitability of INR72 crores in FY26, a significant swing of INR140 crores from a loss of INR69 crores in FY25

  • Adjusted operating cash flow improved to INR60 crores in FY26, up 80% from INR34 crores in FY25

  • Net revenue retention (NRR) was 126% in FY26, consistent with 125%-plus for the last 3 years

  • Million-dollar customers increased from 28 to 35, representing a 25% growth, indicating deepening enterprise relationships

  • All three business segments (streaming unification, monetization & marketplace, cloud modernization) grew over 25% and are now individually worth over INR250 crores

  • AI commercialization is underway with NEWSPULSE, their first agentic product, securing its first paying customer

Concerns

  • Q4 gross margin experienced compression due to client renegotiation, minor AI costs, and 'double bubble' costs from exploring lower-cost alternatives

  • Modest pressure on CPMs in the monetization segment, though currently offset by volume uptick

  • Sales staff headcount has seen a decline over a 2-3 year view, though management attributes this to improved sales efficiency

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹397 Cr
    YoY +29%

FY26

  • Revenue
    ₹1,506 Cr
    YoY +30%
  • Adjusted EBITDA
    ₹156 Cr
    YoY +578%
  • Adjusted EBITDA Margin
    10%
  • PAT
    ₹72 Cr
  • Adjusted Operating Cash Flow
    ₹60 Cr
    YoY +80%
  • Net Revenue Retention
    126%
  • Million-Dollar Customers
    35
    YoY +25%
  • S&M + CS % Revenue
    24%

What they filed

Q4 FY26: revenue up 20.3%, net profit up 325.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ3 FY25Q4 FY25Q2 FY26Q3 FY26Q4 FY26
Revenue330 309 375 404 397 +20%
EBITDA-1 -13 -3 31 24 +2500%
Net profit8 -11 3 31 34 +325%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹1,505 Cr Total
  • Streaming Unification ₹838 Cr 55.7%
  • Monetization and Marketplace ₹381 Cr 25.3%
  • Cloud Modernization ₹286 Cr 19.0%

Order book

low confidence
While no specific TCV numbers were disclosed, the company reported adding 27 customers in Q4 FY26 (net increase over FY), with a total customer count of 492 for FY26. Strategic partnerships were signed with ADAMS and Anoki, and AccuWeather migrated to Amagi Cloud. NEWSPULSE, their first agentic AI product, secured its first paying customer and is in trials with leading news networks, indicating future revenue potential.

Source: Inferred

Capital allocation

high confidence
  • Liquidity Cash ₹1,664 Cr Cash in bank includes IPO proceeds and continued operating cash generation.
    And out of which INR907 crores was FY25 exit, the rest of it is what is the IPO proceeds plus continued operating cash generation that we're doing.

Guidance & targets

Profitability

  • PAT Margin Profitability · future · Low confidence headroom and upside
    I think our current margin levels are not steady state, if that's the question you're asking. There is headroom and upside and you've seen that. So, I think there is obviously headroom and upside.

    — Vijay NP

  • Operating Leverage Profitability · FY27 · Low confidence continue to balance growth, investments and margin discipline
    Second is the operating leverage. We'll continue to balance growth, investments and margin discipline, especially across product, AI and sort of go-to-market

    — Vijay NP

Revenue

  • Revenue Growth Revenue · FY27 · Low confidence healthy clip
    So, our aspiration would be to continue to kind of grow at a healthy clip both on top line and just balancing that with fiscal responsibility.

    — Vijay NP

Cash Flow

  • Cash Conversion Cash Flow · FY27 · Low confidence focus on converting earnings into operating cash flow and free cash flow
    and third, on cash conversion, as profitability improves, we'll focus on converting earnings into operating cash flow and free cash flow as well.

    — Vijay NP

What to watch in Q1 FY27

NEWSPULSE Commercialization & Margins

Next couple of quarters
Current Early stage, first paying customer, tens of POCs, margin accretive at scale
Target More solidified talk track, more proof points on margin and customer mix

Why it matters

NEWSPULSE is Amagi's first agentic AI product; its successful commercialization and margin contribution are key to the company's AI strategy and future growth.

I think that we'll be able to share a lot more in the next couple of quarters, then we'll have a lot more proof points about this whole thing.

Risks & concerns

  • Gross margin compression

    medium

    Q4 gross margin was impacted by client renegotiation, minor AI costs, and 'double bubble' costs from exploring lower-cost alternatives, but management views it as a temporary 'speed bump'.

    Both acknowledged

  • CPM pressure in monetization segment

    low

    Modest pressure on CPMs is observed, but it is currently offset by significant volume growth in monetized impressions (62% YoY).

    Management acknowledged

  • Indirect impact from macro advertising economy

    low

    While customers' revenue depends on advertising, Amagi is not directly impacted and currently sees no material impact from macro conditions.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
NEWSPULSE sales motion and unit economics Partial
It's early, but it is the first data point that AI work has been talking about is starting to convert and not just trials. We are starting to convert into revenues here... It will likely follow S curve to your point, which will be margin accretive at relatively threshold scale.

Analyst sought clarity on the commercialization strategy and margin profile of Amagi's key AI product, NEWSPULSE, which management indicated is early but promising.

Asked by Nimit Tanna

Gross margin compression in Q4 FY26 Direct
One is the customer pricing, but there were 2 other things. One is the AI cost, which is a relatively minor impact on gross margin. And the third one is what we said in the previous earnings call, which was, we are exploring sort of lower-cost alternatives and there's a double bubble cost to incurring that basically running two parallel instances...

Analyst questioned the drivers of Q4 gross margin decline, and management provided specific reasons, clarifying it's not indicative of the full-year trend.

Asked by Manish Adukia

Future gross margin pressure from client renegotiations Direct
I think the way at least internally, when we are looking at our modelling, there is enough of a tailwind on the volume side to offset modest sort of compression on price. So, we believe that it will net out as a net tailwind. And I think in the medium term, this is not something -- this is more like a speed bump, not a recurring signal.

Analyst probed potential ongoing margin pressure, and management expressed confidence that volume growth would offset pricing compression, deeming it a temporary issue.

Asked by Manish Adukia

Emerging AI competition Direct
if you look at it is because of the deep domain expertise that already exists. We run mission-critical workflows for our customers... It took us almost 10 years to kind of build the sort of infrastructure we need to get there. Lots of proprietary data that we have... Third, if you look at it is a network effect.

Analyst inquired about competitive threats in the AI space, and management articulated Amagi's strong moats, including deep domain expertise, proprietary data, and network effects.

Asked by Manish Adukia

FY27 revenue growth and margin expansion guidance Evasive
our aspiration would be to continue to kind of grow at a healthy clip both on top line and just balancing that with fiscal responsibility. It's hard to kind of give prescriptive guidance at this point, but our aspiration is to kind of continue on the trajectory that we have been in the last 3 years.

Analyst sought specific numerical guidance for the next fiscal year, but management provided a qualitative response emphasizing balanced growth and fiscal responsibility.

Asked by Manish Adukia

Sales staff headcount decline and sales efficiency Direct
that's also the dynamics of the business. If you look at our NRR, the net retention example, at 126% and above, it's clearly showing you that customers - existing customers are actually adding more and more revenue to us today, for example, as a company. So that is in line with definitely, by definition, that drives sales efficiencies...

Analyst questioned the declining sales headcount, and management explained it as a result of improved sales efficiency driven by high NRR and product-led growth.

Asked by Vivekanand Subbaraman

Monetized impression acceleration and macro advertising impact Direct
this is in line with how the market is growing. If you look at it, viewership is eventually, there's only a single way, a directional call that's happening is everybody is moving to streaming... There might be some modest pressure on CPMs, but that's more than offset by the volume uptick, which is causing a net tailwind...

Analyst asked about the drivers of monetized impression growth and potential macro risks, to which management attributed it to streaming shift and volume offsetting CPM pressure.

Asked by Vivekanand Subbaraman

New customer additions trend Direct
if you look at the customer count in Q4, we actually added 27 customers and we probably churned out 30 because as a part of standard year-end housekeeping on payment, defaults and some accounts... But if you look at our customer count over the last 3 years, right, like it's been 396 in FY '24, roughly 463 in FY '25 and about 492 in FY'26.

Analyst raised a concern about a perceived declining trend in new customer additions, which management clarified by providing overall customer growth figures and explaining Q4 churn as housekeeping.

Asked by Bharat Gulati

3 min read 7 chapters

Detailed narrative

Strong Financial Performance and PAT Profitability

Amagi Media Labs Limited reported robust financial results for FY26, with revenue growing 30% to INR1,506 crores, representing a 23% constant currency growth. The company achieved PAT profitability of INR72 crores, a significant turnaround from a loss of INR69 crores in FY25, indicating a swing of INR140 crores. Adjusted operating cash flow also saw an 80% increase, reaching INR60 crores in FY26, up from INR34 crores in FY25.

Operating Leverage and Margin Expansion

The company demonstrated significant operating leverage, with adjusted EBITDA expanding sixfold to INR156 crores in FY26, resulting in a 10% margin, up from 2% in FY25. Total costs as a percentage of revenue declined from 118% in FY24 to 90% in FY26. This improvement was primarily due to reduced spend in sales & marketing plus customer success (from 44% to 24% of revenue) and R&D (from 33% to 23% of revenue).

Durable Revenue Growth and Customer Deepening

Amagi's revenue quality strengthened, marked by a net revenue retention (NRR) of 126% in FY26, consistent with over 115% for the past three years. The number of customers contributing over $1 million in annual revenue increased by 25%, from 28 to 35, indicating deeper enterprise relationships. All three business segments—streaming unification, monetization & marketplace, and cloud modernization—grew over 25%, with streaming unification at INR838 crores (26% growth), monetization at INR381 crores (36% growth), and cloud modernization at INR286 crores (32% growth).

AI Commercialization with NEWSPULSE

The company's AI investments are beginning to commercialize, with NEWSPULSE, their first agentic product, securing its first paying customer and undergoing trials with leading news networks. Management views AI as a compelling growth opportunity, enabling customers to extend content to new audiences and geographies, and absorb operational toil into software. They anticipate a roadmap of agentic products rolling out in the coming months and years.

Strategic Wins and Industry Tailwinds

Amagi successfully migrated AccuWeather's workflows end-to-end to its cloud, a key cloud modernization win. The company also secured new partnerships in Latin America with ADAMS and ad partner Anoki. Significant industry tailwinds, including the shift to streaming (48% of US TV viewing), the rise of FAST (Free Ad-supported Streaming TV), and growing CTV ad ad spend ($42.5 billion), continue to drive Amagi's growth.

Gross Margin Dynamics and Outlook

While the full-year gross margin remained steady at approximately 69%, Q4 experienced some compression. This was attributed to customer pricing, minor AI-related costs, and 'double bubble' costs from exploring lower-cost alternatives. Management expects volume growth (monetized impressions up 62% YoY) to offset any modest CPM pressure, viewing the Q4 compression as a temporary 'speed bump' rather than a recurring signal.

Global Market Focus and India Opportunity

Amagi operates as a global company, with the US market remaining a significant focus due to its size ($150+ billion media market) and historical accomplishments. However, management also sees India as an exciting and growing opportunity, particularly as streaming adoption increases and cloud maturity improves, despite its smaller current contribution to revenue. The company works with Indian customers like Zee TV and Viacom18.

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