Amagi Media Labs IPO: Streaming Tech Company Turns Profitable After Years of Losses
Amagi Media Labs plans ₹816 crore IPO fresh issue plus up to ₹973 crore OFS for cloud infrastructure and growth. The streaming SaaS company turned profitable in H1 FY26 with ₹6.50 crore net profit after years of losses. Revenue grew 30.7% annually to ₹1,162.60 crore in FY25, with 73% contribution from America. The company serves global clients like Fox and Network18 across cloud modernisation, streaming unification, and monetisation segments.
*this image is generated using AI for illustrative purposes only.
Amagi Media Labs, a Bengaluru-headquartered software-as-a-service provider in streaming and content monetisation, has announced plans for an initial public offering to raise funds for expansion and cloud infrastructure development. The company serves global media companies across three key segments and has demonstrated strong revenue growth despite facing profitability challenges in recent years.
IPO Structure and Fund Utilisation
The company plans to raise capital through a dual approach, combining fresh equity issuance with existing shareholder exits.
| Component | Amount |
|---|---|
| Fresh Issue | ₹816.00 crore |
| Offer for Sale | Up to ₹973.00 crore |
| Post-IPO Promoter Stake | 14.9% |
| Current Promoter Stake | 16.7% |
The fresh issue proceeds will be directed toward cloud infrastructure development and inorganic growth opportunities. The offer for sale component will provide existing investors with partial exit opportunities while reducing promoter holdings.
Business Operations and Client Portfolio
Amagi Media Labs operates across three primary business verticals in the streaming technology ecosystem. The company focuses on cloud modernisation services, helping legacy television network stations transition to cloud-based systems. Its streaming unification services assist content providers in navigating fragmented over-the-top distribution landscapes.
The monetisation segment enhances revenue generation through advertising solutions and expanded content distribution capabilities. The company maintains relationships with prominent global clients including Fox, Network18, and Lionsgate for content provision. Distribution partnerships include Rakuten and Roku, while advertising distribution involves collaborations with OnCore and The Trade Desk.
Geographic Revenue Distribution
The company demonstrates strong international presence with significant revenue concentration in developed markets.
| Region | Revenue Contribution (FY25) |
|---|---|
| America | 73% |
| Europe | 17% |
| Other Markets | 10% |
Financial Performance and Profitability Turnaround
Amagi Media Labs has demonstrated consistent revenue growth while achieving a significant profitability milestone in recent periods. Revenue from operations increased by 30.7% annually, reaching ₹1,162.60 crore in FY25 from earlier levels in FY23.
| Financial Metric | FY23 | FY25 | H1 FY26 |
|---|---|---|---|
| Revenue (₹ crore) | - | ₹1,162.60 | ₹704.80 |
| Net Profit/Loss (₹ crore) | -₹321.00 | -₹69.00 | ₹6.50 |
| EBITDA Margin | Loss | 2.0% | 8.3% |
| Operating Cash Flow (₹ crore) | Negative | ₹33.60 | Negative |
The company achieved profitability in the first six months of FY26, reporting net profit of ₹6.50 crore after reducing losses from ₹321.00 crore in FY23 to ₹69.00 crore in FY25. EBITDA margin improved significantly to 8.3% in H1 FY26 compared to 2.0% in FY25, following EBITDA losses in previous years.
Research and Development Focus
The company maintains substantial investment in platform development, with research and development costs comprising approximately 24% of total expenses. This allocation aligns with global technology product companies' spending patterns and reflects the company's commitment to innovation in the rapidly evolving streaming technology sector.
Valuation Metrics
Given the company's recent transition to profitability, traditional price-earnings multiples are not applicable for historical periods. The price-sales multiple, calculated using annualised net sales for H1 FY26 and post-IPO equity structure, works out to 5.5 times. The Indian market lacks direct listed peers for comparative valuation analysis.
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