Amagi Media Labs IPO

It has built a strong lead in cloud broadcast (broadcasting run through the cloud, not heavy hardware), and it works with over 45% of the top 50 listed media and entertainment companies worldwide. As of September 30, 2025, it had 481 customers, including big names like NBCUniversal, Lionsgate, and VIZIO, which is a pretty solid vote of confidence in its “glass-to-glass” (camera-to-screen) platform.

Financially, the growth has been steady and strong, as the revenue from operations grew at a 30.7% CAGR (the average yearly growth) between FY23 and FY25. That pace didn’t slow down recently either, with revenue rising by nearly 35% to ₹704.82 crore in the six months ended September 30, 2025, versus the same period last year.

A nice sign here is that existing customers are, on average, spending more over time. You can see that in the Net Revenue Retention of nearly 127% (meaning the same customer base brought in more revenue than last year, even before counting brand-new customers) for the period ended September 30, 2025. On top of that, its top ten customers have stayed for about 4 years on average, which suggests the product is pretty sticky once teams adopt it.

After reporting losses in earlier years, it moved into profit in the six months ended September 30, 2025, posting ₹6.47 crore in profit. It also delivered a positive Adjusted EBITDA (earnings from core operations, before interest, taxes, depreciation, and amortization, with some one-offs adjusted out) of 8.26%, which points to better operating efficiency.

At the core level, the business looks healthy; it reported a gross margin of 69.60% in the six months ended September 30, 2025. In simple terms, because it’s software-led, it can deliver the service without costs rising at the same speed, and direct costs were only around 30% of revenue.

Its ad engine is working at a serious scale, customers processed 18.23 billion ad impressions (how many times ads were served) in just the six months ended September 30, 2025. That kind of volume supports the “flywheel effect” (a growth loop) where more content pulls in more viewers, which then attracts more advertisers.

A good sign is that costs aren’t rising as quickly as revenue. Operating expenses fell as a share of revenue, from 85.47% in FY23 to 67.30% in FY25. This is operating leverage (when revenue grows faster than costs), and it usually helps profits improve as the company gets bigger.

Another positive is that the company is getting more output per employee over time. Average revenue per employee grew by roughly 22% between FY2023 and FY2025, reaching ₹1.32 crore per employee, which usually signals improving productivity as the company scales.

A big chunk of its business is tied to the US - about 73.23% of revenue, or ₹516.11 crore, comes from the Americas region. So if the US sees a slowdown, new regulations, or even a pullback in tech spending, it could hit this company harder than it would a more geographically balanced business.

A small set of customers matters a lot here, as its top 10 clients bring in over 40% of revenue. Even more importantly, its biggest single customer alone contributed around 14% of revenue, or ₹99.09 crore, in the latest six-month period. That kind of concentration is risky because losing just one large client can leave a noticeable hole.

Even though it recently reported a profit, it has a track record of losses - ₹68.7 crore in FY25, ₹245 crore in FY24, and ₹321.3 crore in FY23. The bigger question is whether profitability can hold up, especially if costs grow faster than revenue or if growth cools off.

The business runs heavily on third-party cloud providers (like AWS - Amazon’s cloud platform), and that isn’t cheap. In the latest six-month period, technology and cloud infrastructure costs were ₹191.26 crore, which is about 26.5% of total expenses. If cloud vendors raise prices or face outages, it can squeeze margins and disrupt operations pretty directly.

A lot of revenue comes in foreign currency like the US Dollar, but the company doesn’t hedge (hedging - using financial contracts to reduce currency risk) against exchange-rate swings. As of September 30, 2025, it had unhedged trade receivables (money customers owe) of ₹77.64 crore. If the currency moves the wrong way, reported earnings can take a hit.

It has bought companies like Tellyo and Argoid.AI to add new capabilities. The tricky part is that integrating acquisitions can get messy-systems, people, and products don’t always fit smoothly. In FY24, it already recorded an impairment loss (a write-down when an asset is worth less than expected) of ₹13.88 crore linked to goodwill and assets from the Tellyo deal.

This is a people-heavy business, and that shows up in the numbers. Employee benefit expenses were ₹385.69 crore in the six months ended September 2025, nearly 55% of revenue. If hiring gets tougher or salaries rise faster, margins could feel the pressure.