IPO closes on 16 Jan'26
Amagi Media Labs Ltd
Minimum Investment
₹ 14,801 / 41 shares
Our Verdict:
Avoid
- Amagi Media Labs Ltd (AMLL) has shown strong revenue growth, but its profitability remains a concern, as evidenced by negative PAT and ROE as of FY25. The firm saw a turnaround in H1FY26 with a net profit of Rs 6.5 crore, supported by strong operating leverage, positioning it to achieve full-year profitability in FY26.
- However, it remains uncertain whether this shift towards profitability represents a sustained upward trend. As the company continues to scale its operations, invest in technology and expand into new markets, a key concern is whether its margins will remain stable or face pressure as the business grows and costs potentially rise.
- From a valuation perspective, the P/E ratio based on annualised FY26 earnings is exceptionally high at ~600x, indicating that much of the anticipated future growth is already priced in. This leaves little room for error, especially if the company’s performance falls short of expectations.
- While the IPO aims to fund growth and technological advancements, it does not offer immediate earnings visibility. The real test will be whether AMLL can effectively convert its growth into sustained profitability.
- At the current pricing, the IPO offers limited scope for near-term upside. Given the unfavourable risk–reward balance, it would be prudent for investors to avoid the IPO at this stage and instead monitor execution progress and financial performance over the next few quarters before making an investment commitment.
About the company
Founded in
1 Feb'08
Managing director
Baskar Subramanian
- AMLL is a software-as-a-service (SaaS) company that connects media companies to their audiences through cloud-native technology. Its platform enables content providers and distributors to upload and deliver video content over the internet, commonly known as streaming, to smart televisions, smartphones and applications, offering an alternative to traditional cable or set-top box services.
- AMLL derives its revenue from three main segments: (i) Streaming Unification, which accounts for 57% of revenue; (ii) Monetisation & Marketplace, which contributes 24% to revenue; and (iii) Cloud Monetisation, which makes up 19% of revenue.
STRENGTHS
- Financial Performance: AMLL has shown impressive growth in its top-line, achieving a 31% CAGR in operating revenue from FY23 to FY25. The firm also achieved profitability in H1FY26, supported by a robust EBITDA margin of 8.26%.
- Global Reach & Extensive Network: As of September 30, 2025, AMLL served over 400 content providers, more than 350 distributors and over 75 advertisers across 40+ countries. The company collaborates with over 45% of the top 50 media and entertainment companies by revenue, showcasing its strong presence in the global market.
- Strong Customer Retention: AMLL has established long-term, growing relationships with its customers. The average tenure with its top 10 customers stood at 4 years as of September 2025. Notably, the company has experienced zero churn among its top 10 customers from FY23 to September 2025, highlighting its ability to foster long-term, mutually beneficial ties.
RISK FACTORS
- Weak Financials: AMLL has reported losses for the past three fiscal years and has experienced negative cash flow from operations in the past. If the firm fails to achieve sufficient revenue growth or effectively manage its expenses, its financial condition may be adversely affected.
- Geographic Concentration: AMLL’s business is highly dependent on the United States, which accounts for 73% of its revenue. Any unfavourable changes in the geopolitical, economic or regulatory landscape in the US could significantly impact its operations.
- Foreign Currency Risk: Nearly 99% of the revenue is generated from jurisdictions outside India and AMLL does not actively hedge its foreign currency exposure. This exposes the firm to foreign exchange risks, which could negatively impact its financial performance, cash flow and overall business stability.
- Regulatory Challenges: AMLL’s business model is built on data, advertising and cross-border operations. Any tightening of data protection laws, advertising regulations or competition laws could increase operational costs or restrict growth, especially as the company seeks to expand through acquisitions.
- Intense Competition: The FAST (Free Ad-Supported Streaming Television) and connected TV markets are highly competitive, with global tech giants and well-funded rivals. Increased pricing pressure, higher customer acquisition costs or a loss of differentiation could harm its growth prospects and profit margins.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 1,789 crore
Fresh Issue
₹ 816 crore
OFS
₹ 973 crore
Price range
₹ 343 - 361
Lot size
41 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Investment in technology and cloud infrastructure;
- Funding inorganic growth through strategic acquisitions (yet to be identified); and
- General corporate purposes.
Dates
Bidding open
13 Jan'26
Bidding close
16 Jan'26
Allotment date
19 Jan'26
Refund date
20 Jan'26
Listing
21 Jan'26
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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