Amagi Media Labs (AMAGI) Q3 25/26 earnings summary

Executive summary

• Achieved strong double-digit revenue growth in Q3 and the first nine months of FY26, driven by increased content creation, distribution, and monetization activities, with broad-based performance across all business segments.

• Continued expansion in customer base, adding 40+ customers in the last year, and leveraging AI and cloud modernization to optimize media operations and expand market reach.

• Successfully completed IPO in January, enhancing financial flexibility and listing on BSE and NSE effective January 21, 2026.

• Approved alteration of Articles of Association, including new director nomination rights for major investors.

Financial highlights

• Q3 FY26 consolidated revenue grew 22% year-over-year to INR 4,038.12 million (₹404 Cr); nine-month revenue up to INR 11,086.35 million (₹1,109 Cr).

• Adjusted EBITDA for Q3 FY26 surged 1297% year-over-year to ₹116 Cr; Q3 margin at 27%, normalized to ~10% after one-offs and seasonality.

• Q3 PAT reached INR 31 crores (7.7% margin); nine-month PAT at INR 37 crores.

• Free cash flow for Q3 was INR 118 crores; nine-month free cash flow negative INR 96 crores due to IPO and ESOP buyback expenses.

• Ended Q3 with INR 803 crores in cash and investments, not including IPO proceeds.

Outlook and guidance

• Management expects to maintain historical growth rates and margin trajectory over the next 2–3 years, focusing on leveraging AI, programmatic advertising, and cloud adoption.

• Steady-state EBITDA margin for the business is expected to be around 10%, with potential for further expansion as operating leverage increases.

• No formal revenue CAGR guidance, but focus remains on replicating past performance.

• Monitoring ongoing regulatory changes, including new Labour Codes, with Rs 64.04 million recognized as incremental employee benefit cost.