Amagi ends FY26 with 30% growth, first PAT-positive year, and an early AI proof point

Amagi Media Labs closed FY26 with the kind of combination investors look for in a scaling software platform: sustained growth, expanding profitability, and improving cash generation. Revenue for the year ended March 31, 2026 rose 30% year on year to ₹1,506 crore. Adjusted EBITDA increased more than six-fold to ₹155.7 crore, taking the margin to 10.3%. Profit after tax turned positive at ₹71.7 crore, compared with a loss of ₹68.7 crore in FY25. In Q4 FY26, revenue was ₹397 crore, adjusted EBITDA was ₹39.6 crore, and PAT was ₹34.3 crore.

The company framed FY26 as a “balanced year of execution” across growth, profitability, PAT, and cash. Adjusted operating cash flow (excluding one-time pre-IPO ESOP settlement and IPO-related items) was ₹60 crore, up 80% year on year. Cash and investments stood at ₹1,664 crore at March 31, 2026, reflecting IPO proceeds as well as continued operating cash generation.

A key theme in both the investor presentation and earnings call was that Amagi’s revenue quality metrics remain strong even as it scales. Net revenue retention (NRR) was 126% in FY26, marking the third straight year above 120%. The number of customers contributing more than US$1 million in annual revenue increased 25% year on year to 35. Management positioned these as signals that growth is coming not just from new logos, but from deeper enterprise adoption within existing accounts.

What Amagi sells and how growth is distributed

Amagi presents itself as a cloud-native media operating platform that spans the end-to-end workflow from production to preparation, distribution, monetization, and viewership. The company repeated that media workflows are mission critical, large in volume, and have “zero tolerance for errors”, which is why its underlying “video fabric” and orchestration layer are presented as the core foundation.

FY26 revenue was disclosed across three segments, and importantly, all three grew above 25%:

• Streaming Unification: ₹838 crore (about 56% of FY26 revenue), up 26% year on year
• Monetization and Marketplace: ₹381 crore (about 25%), up 36%
• Cloud Modernization: ₹286 crore (about 19%), up 32%

Streaming Unification remains the largest engine, connecting content providers to a fragmented OTT, FAST, and connected TV distribution ecosystem. Monetization and Marketplace was the fastest-growing segment in FY26, supported by higher activity in ad impressions and broader adoption of ad workflows. Cloud Modernization, while the smallest segment, was described as an early-innings opportunity as broadcasters shift from on-premise hardware to cloud-native delivery.

Notes: Adjusted EBITDA excludes ESOP/fair value charges, D&A and impairments, finance costs, other income and taxes. Adjusted OCF excludes one-time pre-IPO ESOP settlement and IPO/buyback items.

Operating leverage and what changed in the cost structure

FY26’s headline improvement was not just growth, but the pace of profitability expansion. Adjusted EBITDA margin improved from 2% in FY25 to about 10% in FY26. PAT margin improved from -6% to 5%. In Q4, adjusted EBITDA margin was 10% and PAT margin was 8%.

Management attributed operating leverage primarily to sublinear scaling in selling and servicing costs as the business grows through customer expansion. In the earnings call, the CEO also pointed to product-led expansion as an additional lever, suggesting that customer “touch” can shift from manual selling to product-driven adoption, especially as automation increases.

The CFO highlighted that total costs as a percentage of revenue declined from 118% in FY24 to 90% in FY26. A major contributor was Sales and Marketing plus Customer Success, which reduced from 44% of revenue in FY24 to about 24% in FY26. R&D as a percentage of revenue also declined from 33% in FY24 to 23% in FY26, while management emphasized that investments continue, including in AI.

The company also flagged that ESOP costs as a percentage of revenue reduced materially, supporting flow-through from EBITDA to PAT. At the same time, G&A rose from 10% to 12%, reflecting investments in systems, governance, and public company readiness.

A nuance raised in Q&A was gross margin volatility at the quarterly level. The CFO said Q4’s sequential gross margin decline was driven by three factors: customer pricing dynamics, some cost related to running parallel systems while exploring lower-cost alternatives for mission-critical workflows, and a relatively minor AI cost impact. Management cautioned against extrapolating quarterly gross margin and pointed to full-year gross margin being broadly stable around 69% over the last three years.

AI as a product layer: NEWSPULSE and the early commercial signal

A central narrative in the presentation was that AI is a multiplier to the company’s addressable opportunity, not only for automation but also for new revenue formats. Management described a phased approach: unify workflows, analyze telemetry, and then automate with proprietary AI agents.

In FY26 and Q4 commentary, the key product milestone was NEWSPULSE, described as Amagi’s first agentic AI product. Management said it is in trials with leading news networks and that the company has signed its first paying customer. In response to investor questions, the CEO stated that the initial customer cohort is primarily traditional news networks, spanning broadcast and FAST. He also said the first port of call is Amagi’s existing customer base, but that the company is also seeing interest from new logos where NEWSPULSE could be the landing product.

On pricing and unit economics, management was careful. The CEO said pricing is outcome-driven and currently a mix of fixed plus transaction or outcome-based components. The CFO added that the margin profile is likely to follow an S-curve, with the product becoming margin accretive after crossing certain scale thresholds. The company did not provide a gross margin target or a revenue contribution outlook for AI products.

Strategically, management presented AI use-cases in two buckets. The first is cost reduction by automating manual operational tasks such as monitoring, content preparation, and ad operations. The second is revenue expansion by repackaging premium content into short-form and social-ready formats to reach Gen Z and Gen Alpha audiences, as well as by enabling localization and language automation to extend content across geographies.

Tailwinds, partnerships, and enterprise wins

Amagi linked its runway to three structural tailwinds: cloud modernization, streaming consumption, and connected TV monetization. The presentation cited a cloud modernization serviceable addressable market (SAM) of US$1.9 billion, streaming at 48$42.5 billion growing at about 10% annually.

Operational indicators were used to show platform scale. FY26 cumulative metrics included 876K hours of content processed, 9,425 channel deliveries, 407 distributors, and 42.4 billion monetized ad impressions. Management emphasized that media volume flowing through the platform is growing ahead of revenue, which it believes creates multiple future monetization levers.

The quarter also included an enterprise case study and partnerships. AccuWeather was cited as completing an end-to-end cloud migration to Amagi Cloud, framed as a Cloud Modernization win. The company also announced partnerships with ADAMS for go-to-market expansion in Latin America and with Anoki to strengthen distribution of its monetization stack.

In the press release and call, management noted that liquidity is intended to support platform innovation, AI capabilities, and selective inorganic opportunities. The CEO indicated that corporate development scanning is ongoing, but did not disclose specific targets or timelines.

FY27: priorities and seasonality, but no numeric guidance

The company did not provide quantitative guidance for FY27 revenue growth or margins. Instead, it framed FY27 focus around three pillars: durable revenue growth, operating leverage, and cash conversion.

Management also shared a phasing pattern based on FY25 and FY26 averages: Q1 typically represents about 22% of full-year revenue and about 11% of full-year adjusted EBITDA. The CFO added that revenue is roughly 45% in the first half and 55% in the second half, while EBITDA is about 37% in the first half and 63% in the second half.

A few risk-related disclosures appeared in Q&A. The CFO discussed currency exposure and stated that while a good chunk of revenue is USD, about US$50 of cost per US$100 of revenue is also USD-denominated, combining direct costs and US-based sales costs. The company did not provide details on hedging policy. On the monetization business, management acknowledged that macro advertising conditions can indirectly affect customers, though it stated it is currently comfortable with the environment.

Takeaways

FY26 was a clear inflection year for Amagi. The company delivered 30% revenue growth while expanding adjusted EBITDA margin to about 10% and turning PAT positive for the first time. NRR remaining above 120% and the increase in US$1 million plus customers point to durable expansion within large accounts. The balance sheet is strong, with ₹1,664 crore in cash and investments.

The next leg depends on execution across two tracks: sustaining platform-driven growth across the three segments while converting profitability into higher cash generation, and translating early AI signals like NEWSPULSE into repeatable, scalable revenue without destabilizing unit economics. Management’s commentary suggests the company intends to invest ahead of the curve in AI, but with discipline on operating leverage and cash conversion.

Cover image description: An ultra-realistic corporate office scene with a large wall-mounted analytics screen showing three clean line charts for yearly revenue, adjusted EBITDA, and PAT rising into FY26, alongside three stacked bars representing segment revenue split across streaming unification, monetization and marketplace, and cloud modernization; neutral lighting, minimalistic finance aesthetic, no logos or text labels.