Amagi Media Labs Ltd. IPO – Detailed Review

January 9, 2026

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Amagi Media Labs Ltd. IPO – Detailed Review & Investment View

Founded in 2008 and headquartered in Bengaluru, Amagi Media Labs Ltd. operates at the intersection of cloud technology, broadcast television and connected TV (CTV). The company provides end-to-end “glass-to-glass” solutions covering content creation, channel management, distribution and monetisation for traditional TV as well as digital streaming platforms. Importantly, there is no other company globally offering such a comprehensive, integrated solution at scale, which places Amagi in a unique competitive position.

Amagi is a global leader in enabling Free Ad-Supported Streaming TV (FAST) channels and works with marquee platforms such as Pluto TV, Samsung TV Plus and Roku Channel. As of March 31, 2025, the company served 700+ content brands, managed 2,000+ channel deployments, and operated across 100+ countries, with a strong footprint in the US, Europe and Asia. Notably, around 45% of the world’s top media companies are Amagi’s clients, and the company enjoys a very high client retention rate, underlining the stickiness and critical nature of its offerings.

Business Model – Asset-Light, Scalable, High Operating Leverage

Amagi follows a pure asset-light SaaS and platform-led model, built on proprietary cloud infrastructure and AI-enabled technology. Once a certain scale is achieved, incremental revenues flow through at a very high margin. The company already enjoys operating margins of nearly 69% at the contribution level, reflecting strong pricing power and operating leverage.

Crucially, Amagi has now crossed the inflection point where its fixed and variable costs are largely covered. This implies that incremental revenue growth is expected to translate disproportionately into net profits over the current year and the coming years, fundamentally altering the earnings trajectory of the company.

Products & Solutions

CLOUDPORT – Cloud-based linear TV playout platform (UHD/HD/SD)
PLANNER – Content scheduling and block management
THUNDERSTORM – Server-side ad insertion (SSAI) platform for OTT & FAST
FAST & On-Demand Solutions – End-to-end channel launch, monetisation and revenue-sharing

Together, these offerings create a closed-loop, glass-to-glass ecosystem that is extremely difficult to replicate.

Financials – Turning Point Achieved

(Consolidated, Rs. crore)

Period	Total Income	EBITDA	PAT	Net Worth
Sep 30, 2025	733.93	58.23	6.47	859.34
Mar 31, 2025	1,223.31	23.49	-68.71	509.45
Mar 31, 2024	942.24	-155.53	-245.00	496.80

After several years of losses due to heavy investments in technology, platforms and global expansion, Amagi has turned profitable. With zero borrowings and a strengthened balance sheet, the company is now positioned for exponential profit growth, not linear growth.

Valuation Metrics – Why Conventional Ratios Are Misleading

EPS (Post IPO): Rs. 0.60
Post-IPO P/E: 603.54x
Price to Book Value: 14.10x

Judging Amagi purely on current EPS, P/E or P/B ratios is completely misleading. The company is a classic platform-scale story, where valuations are driven by:

Market leadership in a fast-growing global segment (FAST & CTV)
High entry barriers and zero global competition in glass-to-glass solutions
Massive operating leverage kicking in post break-even
Strong customer lock-in and network effects

Such businesses are never correctly valued on trailing numbers, but on future cash-flow potential and strategic dominance.

Objects of the Issue

Investment in technology and cloud infrastructure – Rs. 550.06 crore
Inorganic growth, acquisitions and general corporate purposes

These uses further strengthen Amagi’s moat, expand global reach and accelerate growth.

Promoters

The promoters are Baskar Subramanian, Srividhya Srinivasan and Arunachalam Srinivasan Karapattu, a team with deep domain knowledge and a proven execution track record in global media technology.

Overall View – Strong Buy

Amagi Media Labs represents a rare, globally scalable, asset-light technology platform with:

No global peer offering glass-to-glass solutions
Deep relationships with the world’s top media companies
Very high retention and network effects
A business model now entering a high-profit acceleration phase

Decision:
STRONG BUY – both from a listing-gain perspective and as a long-term structural compounder.
This is a business where today’s accounting profits vastly understate tomorrow’s true earnings power.

Open 13/01 Close 16/01 Al 19/01 List 21/01

Complete IPO details

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Disclaimer

This IPO coverage is for informational and educational purposes only. Chanakya Ni Pothi does not recommend investments based on GMP data. Investors should read the RHP carefully and consult a SEBI-registered investment advisor before investing.

*RA No.

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