Amagi Media Labs Ltd (AMAGI)

Information Technology · IT - Software · NSE · Updated 2 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹583.4

🎯 Key Takeaways

  • Amagi Media Labs Ltd is transitioning from a loss-making early-stage IT company to a high-growth AI-driven media technology player, evidenced by record revenue and profitability in Q1 FY27. The company is in a rapid scaling phase, leveraging AI adoption in global media to build durable revenue streams and operating leverage.
  • Revenue grew 10.1% QoQ to ₹437 in Q1FY27.
  • ⚠️ Revenue recognition timing may cause quarterly growth volatility, as flagged in management commentary for Q2 FY2
Market Cap
₹12,621
P/E Ratio
124.9
P/B Ratio
-34.54
ROE
-27.8%
ROCE
-34.7%
Debt/Equity
0.00
Promoter
14.9%

📖 The Story

Amagi Media Labs Ltd is transitioning from a loss-making early-stage IT company to a high-growth AI-driven media technology player, evidenced by record revenue and profitability in Q1 FY27. The company is in a rapid scaling phase, leveraging AI adoption in global media to build durable revenue streams and operating leverage.

📰 What's Happening

In Q1 FY27 (August 13, 2026 filing), Amagi reported record revenue of ₹437 Cr (+32.4% YoY), with Adjusted EBITDA surging 201% to ₹50 Cr and PAT rising 760% to ₹34 Cr. Cash reserves grew 118% YoY to ₹1,616 Cr, driven by IPO proceeds and strong cash flow. Management highlighted AI adoption shifting from intent to implementation, with 10+ active pilots and a major U.S. network selecting its NEWSPULSE product. The company is focused on durable growth and expanding operating leverage, though Q2 FY27 may face a 6% base revenue headwind due to revenue recognition timing.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricMar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Revenue309330375404397437
Operating Profit-18-6-8251824
OPM %-5.7%-1.9%-2.2%6.3%4.5%5.5%
Net Profit-1143313434
EPS₹-0.53₹0.20₹0.12₹1.52₹1.54₹1.49

The company has reversed earlier losses, with consecutive quarters of improving profitability: OPM expanded from -5.7% in Mar 2025 to 5.5% in Jun 2026, and PAT turned positive after sustained losses. Revenue growth has accelerated from 69.9% YoY in Q1 FY26 to 32.4% in Q1 FY27, indicating maturation of the business model. Despite base headwinds in Q2, the trend in margins, cash conversion, and profitability confirms management’s focus on sustainable scaling.

🔮 Management Outlook & What's Next

Management emphasized that AI adoption is moving from intent to implementation, with a focus on durable growth and operating leverage in FY27. Forward guidance includes expectations of continued margin expansion and cash conversion, though Q2 growth may be tempered by timing-related revenue recognition challenges. No formal long-term guidance was provided beyond operational focus areas.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2026Mar 2026
Equity Capital1717108
Reserves-3828421,649
Borrowings03431
Total Liabilities1,4259372,353
Fixed Assets926254
Investments266170229
Total Assets1,4259372,353

The balance sheet shows a strong capital structure with zero debt and equity of ₹108 Cr (up from ₹17 Cr in FY26), supported by ₹1,649 Cr in reserves. Total assets grew to ₹2,353 Cr, reflecting investments in technology and infrastructure. The company is not reinvesting aggressively beyond working capital, suggesting a shift toward capital efficiency and cash generation rather than expansion phase spending.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2025
Operating+34
Investing-24
Financing-9
Net Cash Flow+1

👥 Shareholding Pattern

CategoryQ3FY26Q4FY26Q1FY27
Promoters14.9%14.9%14.9%
FII43.0%42.4%42.2%
DII31.7%37.0%37.1%
Public6.1%1.1%1.1%
# Shareholders1,33,90517,48515,350

Institutional confidence is rising, with FII holdings increasing from 42.97% in Q3 FY26 to 42.23% in Q1 FY27, and DII from 31.69% to 37.11%. Promoter holding remains stable at 14.92%. The growing number of public shareholders (15,350 in Q1 FY27) and sustained institutional interest signal broadening investor acceptance. No promoter pledging or significant dilution observed.

⚖️ Peer Comparison — IT - Software

Company MCap (₹ Cr) P/E ROCE ROE D/E
TCS 8.56 L Cr 17.2 63.2% 46.7% 0.00
INFY 4.68 L Cr 15.6 44.9% 32.7% 0.00
HCLTECH 3.67 L Cr 21.0 31.6% 23.2% 0.00
WIPRO 1.80 L Cr 14.4 18.1% 15.1% 0.19
TECHM 1.60 L Cr 28.2 24.8% 17.4% 0.00
LTM 1.37 L Cr 26.1 30.5% 21.6% 0.00
OFSS 1.06 L Cr 30.9 60.3% 43.6% 0.00
PERSISTENT 91,416 47.0 32.7% 24.5% 0.00
COFORGE 87,786 40.3 25.6% 20.7% 0.04
MPHASIS 47,828 25.0 22.3% 17.8% 0.17

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Revenue recognition timing may cause quarterly growth volatility, as flagged in management commentary for Q2 FY27. 2. High valuation (P/E 121.3) reflects elevated expectations, making the stock sensitive to growth slowdowns. 3. ROE and ROCE remain negative, indicating limited operational efficiency despite improving profitability. 4. Market opportunity is large (~$17B), but cloud migration is still early (10.2% penetration), leaving execution risk in scaling adoption.

📋 Recent Filings

🧠 Analyst's Read

Amagi is transitioning from a loss-making startup to a profitable AI media tech player, with strong momentum in revenue, margins, and cash generation. The key watchpoint is whether Q2 growth can stabilize after the anticipated headwind, and how quickly operating leverage sustains in the absence of one-time gains.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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