AMAGI MEDIA LABS LIMITED IPO Explain

Amagi Media Labs IPO Overview

Bengaluru-based cloud-native SaaS provider for broadcast and streaming TV raising ₹1,788.62 cr (₹816 cr fresh issue + ₹972.62 cr OFS). Price: ₹343-361 (Book Building). Lot: 41 shares (₹14,801 min investment).

Funds primarily for technology and cloud infrastructure (₹550-667 cr), inorganic growth (acquisitions), general corporate purposes. OFS at 54% indicates MAJOR investor exit.

Lead: Kotak Mahindra Capital, Citigroup, Goldman Sachs, IIFL Capital, Avendus Capital (5 BRLMs). Registrar: MUFG Intime India.

Founded 2008 (18 years old – established player). Bengaluru HQ with global operations (US, Europe, Asia). 884 employees (31 Mar 2025), 652 in technology/engineering. Serves 700+ content brands, 2,000+ channel deployments, 100+ countries.

Products/Services: Cloud-native “glass-to-glass” SaaS platform for broadcast and streaming TV. Amagi CLOUDPORT (cloud playout), Amagi THUNDERSTORM (server-side ad insertion), Amagi PLANNER (content scheduling), Amagi ON-DEMAND & FAST Solutions (24/7 channel launching on FAST platforms like Pluto TV, Samsung TV Plus, Roku).

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	Mainboard (BSE, NSE)
IPO Open Date	13 January 2026 (Monday)
IPO Close Date	16 January 2026 (Thursday) – 4 days
Anchor Investor Bidding	12 January 2026 (Sunday)
Allotment Date	19 January 2026 (Sunday) – Expected
Credit to Demat	20 January 2026 (Monday) – Expected
Refund Initiation	20 January 2026 (Monday) – Expected
Listing Date	21 January 2026 (Tuesday) – Tentative
Price Band	₹343 to ₹361 per share (Book Building)
Face Value	₹5 per share
Lot Size	41 shares per lot
Min Investment (Retail)	₹14,801 (1 lot = 41 shares at ₹361)
sNII Investment	Data not specified
bNII Investment	Data not specified
Issue Size	₹1,788.62 crore at upper band
Fresh Issue	₹816.00 crore (45.6%) – 22,60,00,000 shares
Offer for Sale (OFS)	₹972.62 crore (54.4%) – 26,942,343 shares
Total Shares Offered	49,542,343 equity shares (4.96 cr shares)
Listing	BSE, NSE (Mainboard)
Post-Issue Market Cap	₹7,810 crore (at upper band ₹361)

Note: 54.4% OFS (₹972.62 cr) vs. 45.6% fresh (₹816 cr) – MAJORITY of IPO proceeds going to EXITING INVESTORS (PI Opportunities Fund-I, Norwest Venture Partners X, Accel India VI, others), NOT to company! Major investor exit after company JUST turned profitable.

Anchor Book: ₹804 cr raised from 42 institutional investors on 12 Jan 2026. SBI MF, ICICI Prudential MF, HDFC MF (~25% of anchor allocation). Fidelity, Motilal Oswal MF, HDFC Life, Tata MF, Franklin Templeton, 360 One, others.

Issue Break-up

Category	Allocation	Shares (Approx)
QIB (Qualified Institutional Buyers)	75%	37.16 crore shares
Anchor Investors	Included in QIB	22 million shares (₹804 cr)
NII (Non-Institutional Investors)	15%	7.43 crore shares
Retail Individual Investors	10%	4.95 crore shares

Note: ONLY 10% retail allocation – extremely low. 75% for institutions reflects positioning as institutional-grade SaaS/tech story, not retail-friendly. Anchor book of ₹804 cr (45% of total issue) indicates strong institutional demand but also high institutional selling (OFS).

Selling Shareholders (OFS ₹972.62 crore)

MAJOR INVESTOR EXIT – 54.4% of IPO is OFS:

Selling shareholders (26,942,343 shares at ₹361 = ₹972.62 cr):

1. PI Opportunities Fund-I – Premji Invest (Azim Premji’s investment arm) – MAJOR STAKE SALE
2. Norwest Venture Partners X – Mauritius – Early-stage VC investor – EXITING
3. Accel India VI (Mauritius) Ltd – Prominent VC – PARTIAL EXIT
4. Trudy Holdings Pte Ltd – Early investor – EXITING
5. Other early investors and promoters – Partial exit

CRITICAL: 54.4% of IPO is OFS – early-stage VCs (Premji Invest, Norwest, Accel) EXITING after company JUST turned profitable (H1 FY26). Red flag: Sophisticated investors selling immediately after profitability milestone suggests:

• Valuation concerns at current pricing
• Limited upside visibility despite growth story
• Exit timing coincides with peak valuation narrative (profitability turn, AI hype, FAST growth)

Promoter holding: Pre-IPO 15.76% → Post-IPO 14.14% (slight dilution). Promoters: Baskar Subramanian (MD & CEO), Srividhya Srinivasan, Arunachalam Srinivasan Karapattu.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹816 crore) will be used for:

Specific Allocation (Data Variance in Sources):

1. Technology and Cloud Infrastructure – ₹550.06-667.21 crore (67-82% of fresh issue)
   • Investment in cloud infrastructure (primarily AWS commitment)
   • Product development and platform enhancement
   • AI/ML integration (Amagi INTELLIGENCE platform scaling)
   • R&D for automation, content scheduling, monetization optimization
   • CRITICAL: AWS commitment of ₹2,418 cr over 6 years (May 2025-Apr 2031) = ₹403 cr/year! “Asset-light” SaaS with MASSIVE infrastructure spend
   • IPO funding ₹550 cr covers only 1.4 years of AWS commitment – more capital required
2. Inorganic Growth (Acquisitions) – Portion of balance funds
   • Funding for unidentified acquisitions
   • Consolidating smaller competitors/point solution providers
   • Technology tuck-ins (recently acquired Argoid.AI for AI/ML scheduling in Dec 2024)
   • Expanding product portfolio through M&A
3. General Corporate Purposes – Balance funds
   • Working capital requirements
   • Business expansion and market penetration
   • Sales & marketing for global customer acquisition
   • IPO offer-related expenses

Strategic Context:

• 67-82% allocation to tech/cloud infrastructure underscores capital-intensive nature despite “SaaS” label
• AWS commitment ₹2,418 cr over 6 years is MASSIVE – ₹403 cr/year ongoing opex
• IPO funds cover 1.4 years AWS spend – implies need for sustained cash generation or future fundraising
• “Inorganic growth” indicates roll-up strategy – consolidating fragmented broadcast tech/FAST ecosystem
• Recent Argoid.AI acquisition (Dec 2024) shows M&A appetite – AI-driven scheduling automation

OFS Proceeds (₹972.62 cr):

• Goes entirely to selling shareholders (Premji Invest, Norwest, Accel, Trudy Holdings, others)
• NO benefit to company – pure investor exit liquidity
• 54.4% of IPO is exit, not growth capital

Note: OFS > Fresh Issue (₹972.62 cr vs. ₹816 cr) is RED FLAG. Early VCs exiting immediately after first profitable quarter (H1 FY26) after 17 years investment suggests peak valuation concerns.

Lead Managers & Registrar

Book Running Lead Managers (5 BRLMs – Premium Banking Consortium):

1. Kotak Mahindra Capital Company Limited
2. Citigroup Global Markets India Private Limited
3. IIFL Capital Services Limited
4. Goldman Sachs (India) Securities Private Limited
5. Avendus Capital Private Limited

Registrar:

• MUFG Intime India Private Limited
  • Address: C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai – 400083
  • Phone: +91-22-4918 6270
  • Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html

Market Makers:

• To be appointed for BSE, NSE (standard mainboard requirement)

Note: 5 premium BRLMs (Kotak, Citi, Goldman, IIFL, Avendus) indicates large, institutional-grade offering. Premium banking consortium reflects company’s global positioning and tech pedigree.

Promoters & Management

Key Promoters (3 Individual Promoters):

1. Mr. Baskar Subramanian – Promoter, Managing Director & Chief Executive Officer
   • Co-founder (2008) – 18 years with company
   • Visionary behind Amagi’s cloud-native broadcast platform
   • Oversees overall strategy, product vision, global operations
   • Led company through 17 years of losses to first profitability (H1 FY26)
   • Pre-IPO: Part of 15.76% promoter group
   • Post-IPO: Part of 14.14% promoter group (dilution)
2. Mrs. Srividhya Srinivasan – Promoter
   • Co-founder (2008)
   • Key stakeholder in company’s strategic direction
   • Part of founding team that built Amagi from startup to global SaaS platform
3. Mr. Arunachalam Srinivasan Karapattu – Promoter
   • Co-founder (2008)
   • Technical and operational expertise
   • Contributed to building technology stack over 18 years

Promoter Holding:

• Pre-IPO: 15.76% (fully diluted basis)
• Post-IPO: 14.14% (after fresh issue dilution)
• LOW promoter holding (14.14% post-IPO) – typical for VC-backed SaaS with multiple funding rounds
• NO promoter OFS – promoters NOT exiting (positive signal vs. VC exit)

Company History:

• Founded: 2008 (18 years old – established player, not startup)
• Headquarters: Raj Alkaa Park, Bengaluru – 560076, Karnataka, India
• Global Presence: US (major revenue contributor 73%), Europe 17%, Asia Pacific, Middle East, India
• Operations: 18 years (2008-2026) – survived multiple business cycles, technology shifts
• Workforce: 884 employees (31 Mar 2025); 652 (74%) in technology and engineering (Bengaluru, US, Croatia, Poland hubs)
• Milestones:
  • 700+ content brands, 2,000+ channel deployments, 100+ countries
  • 481 customers (Sep 2025), 400+ content providers, 350+ distributors, 75+ advertisers
  • 7,095 deliveries (FY25), 5.81 lakh hours of content processed
  • 26.12 billion ad impressions monetized (FY25), 18.23 billion (H1 FY26)
  • Net revenue retention 126.90% (FY25) – existing customers spending more
  • 45% of top 50 global media & entertainment companies are partners
  • First profitable quarter after 17 years (H1 FY26)

Company Contact:

• Registered Office: Raj Alkaa Park, Survey No. 29/3 and 32/2, 4th Floor, Kalena Agrahara Village, Begur Hobli, Bengaluru – 560076, Karnataka, India
• Phone: 080-46634406
• Website: www.amagi.com

COMPANY DETAILS

Amagi Media Labs Limited is a Bengaluru-based cloud-native SaaS technology provider for broadcast and streaming TV founded in 2008, making it an 18-year-old established player (not startup) in media technology. Operating from Bengaluru headquarters with global operations across US, Europe, Asia, and technology hubs in Bengaluru, US, Croatia, and Poland (884 employees, 74% in tech/engineering as of March 2025), the company provides end-to-end “glass-to-glass” (camera-to-screen) solutions enabling broadcasters, content owners, and streaming platforms to launch, manage, and monetize live linear channels and on-demand content on Free Ad-supported Streaming TV (FAST) platforms like Pluto TV, Samsung TV Plus, and Roku Channel without traditional hardware infrastructure, serving 700+ content brands with 2,000+ channel deployments across 100+ countries through three revenue streams: Cloud Modernization (20%), Streaming Unification/Distribution (55%), and Monetisation & Marketplace (25%).

Key Highlights:

• 18 Years Old: Founded 2008 (established player, not startup), 18-year operational history
• Location: Bengaluru HQ + global operations (US 73% revenue, Europe 17%, Asia Pacific, Middle East, India)
• FIRST PROFITABLE YEAR: H1 FY26 turned profitable (₹6.47 cr PAT) after 17 YEARS of losses (FY23-25 cumulative losses ₹635 cr) – unproven sustainability
• Strong Revenue Growth: 30.7% CAGR (FY23-25): ₹681 cr → ₹1,163 cr, H1 FY26 annualized ~₹1,410 cr
• EBITDA Turnaround: FY23 -₹140.34 cr → FY25 +₹23.49 cr → H1 FY26 ₹58.23 cr (8.26% margin)
• Global Scale: 700+ content brands, 2,000+ channels, 100+ countries, 481 customers (Sep 2025)
• Customer Quality: 45% of top 50 global media & entertainment companies, Net Revenue Retention 126.90% (FY25)
• MAJOR OFS: 54.4% of IPO (₹972.62 cr) is investor exit (Premji Invest, Norwest, Accel) – early VCs SELLING after first profitable quarter
• MASSIVE AWS Commitment: ₹2,418 cr over 6 years (₹403 cr/year) – IPO funds cover only 1.4 years
• Low Promoter Holding: 14.14% post-IPO (typical for VC-backed, multiple funding rounds)
• Recent M&A: Acquired Argoid.AI (Dec 2024) for AI/ML scheduling – roll-up strategy

Operations

Geographic Presence:

• Headquarters: Bengaluru, Karnataka, India (Raj Alkaa Park facility)
• Technology Hubs: Bengaluru (India), US, Croatia, Poland – 652 tech/engineering employees (74% of workforce)
• Sales/Operations: Global presence across 40+ countries

Geographic Revenue (FY25 and H1 FY26):

EXTREME US CONCENTRATION: 73% of revenue from America region – single-geography dependency creates massive risk.

Growth Trajectory:

• Revenue Growth: 30.7% CAGR (FY23-25): ₹681 cr → ₹1,163 cr. H1 FY26 annualized run-rate ~₹1,410 cr (21% YoY growth slowing)
• PROFITABILITY TURNAROUND:
  • FY23: Loss ₹321.27 cr (-47.21% margin)
  • FY24: Loss ₹245 cr (-27.87% margin) – losses narrowing but still deep
  • FY25: Loss ₹68.71 cr (-5.91% margin) – losses 72% lower
  • H1 FY26: PROFIT ₹6.47 cr (+0.92% margin) – FIRST PROFIT AFTER 17 YEARS!
• EBITDA Inflection:
  • FY23: -₹140.34 cr (-20.62% margin)
  • FY24: -₹155.53 cr (-17.69% margin) – EBITDA worsened despite revenue growth!
  • FY25: +₹23.49 cr (+2.02% margin) – FIRST positive EBITDA after 17 years! ₹179 cr turnaround
  • H1 FY26: ₹58.23 cr (8.26% margin) – margin expansion accelerating
• Gross Margin Expansion: >69% (FY25), ~70% (H1 FY26) – SaaS economics improving
• ROE: Negative (FY23-25), +0.75% (H1 FY26) – capital efficiency emerging

Operational Metrics:

• Customers: 283 (FY23) → 396 (FY24) → 463 (FY25) → 481 (Sep 2025) – 19% CAGR
• $1M+ Customers: 22 (FY24) → 28 (FY25) – high-value customer expansion
• Net Revenue Retention: 126.90% (FY25) – existing customers spending 27% more YoY (strong upsell)
• Deliveries: 7,095 (FY25) – 46% growth over 2 years
• Content Processed: 5.81 lakh hours (FY25)
• Ad Impressions Monetized: 26.12 billion (FY25), 18.23 billion (H1 FY26)

CRITICAL CONTEXT:

• 17 years to first profit (H1 FY26) after cumulative losses ₹635 cr (FY23-25 alone) + earlier years
• Profitability sustainability unproven – only ONE profitable quarter (H1 FY26 ₹6.47 cr PAT)
• EBITDA margin 8.26% (H1 FY26) still low for SaaS (global SaaS benchmarks 20-30%)
• Employee costs 53.40% of total expenses, cloud/tech costs 26.48% – opex-heavy despite “asset-light” narrative
• AWS commitment ₹2,418 cr (6 years) = ₹403 cr/year ongoing – requires sustained revenue growth to absorb

Company Strengths

1. Global Leadership in Cloud-Native Broadcast & FAST Infrastructure – “Glass-to-Glass” Platform:
   • End-to-end SaaS platform (camera-to-screen) vs. competitors’ fragmented “point solutions”
   • Enables broadcasters/content owners to launch, manage, monetize TV/streaming channels entirely on cloud
   • Infrastructure backbone for FAST platforms: Pluto TV, Samsung TV Plus, Roku Channel, Tubi, others
   • 700+ content brands, 2,000+ channel deployments, 100+ countries – proven global scale
   • RHP states “no listed peers” with comparable end-to-end model – unique positioning
2. FAST (Free Ad-Supported Streaming TV) Boom – Riding Massive Structural Shift:
   • FAST market exploding: 1 billion+ global users, replacing traditional TV advertising ($70B+ market)
   • Connected TV (CTV) ad spend growing at 14.1% CAGR (₹15,290 cr CY24 → ₹29,420 cr CY29P)
   • Video streaming software market growing at 16.8% CAGR (₹13,570 cr CY24 → ₹29,440 cr CY29P)
   • Amagi positioned as infrastructure layer (pipes) for FAST/CTV growth – recurring SaaS revenue
   • Major streaming events: 2024 Paris Olympics, UEFA, Oscars, US Presidential debates – marquee credibility
3. Blue-Chip Customer Base – 45% of Top 50 Global Media Companies:
   • NBCUniversal, Warner Media, ABS-CBN, Fox, Lionsgate, others (per public sources)
   • 481 customers (Sep 2025), 400+ content providers, 350+ distributors, 75+ advertisers
   • Net Revenue Retention 126.90% (FY25) – existing customers spending 27% more (land-and-expand working)
   • 28 customers paying $1M+ (FY25) vs. 22 (FY24) – high-value account expansion
   • Three-sided marketplace (content providers, distributors, advertisers) creates network effects
4. Profitability Inflection – First Profitable Quarter After 17 Years:
   • H1 FY26: PAT ₹6.47 cr (+0.92% margin) – FIRST PROFIT after 17 years of losses
   • Cumulative losses ₹635 cr (FY23-25) narrowed 72% from ₹321 cr (FY23) to ₹69 cr (FY25)
   • EBITDA: FY23 -₹140 cr → FY25 +₹23 cr → H1 FY26 ₹58 cr (8.26% margin) – ₹198 cr swing
   • Gross margin >69% (FY25), ~70% (H1 FY26) – SaaS unit economics improving
   • Operating leverage kicking in – revenue growing faster than opex (employee costs +5% FY24-25 vs. revenue +32%)
5. Technology Differentiation – AI-Powered, Proprietary Platform (Amagi INTELLIGENCE):
   • Amagi INTELLIGENCE: Native AI/ML layer for content scheduling, monetization optimization, metadata workflows
   • Acquired Argoid.AI (Dec 2024): AI-driven 24×7 programming automation using viewer behavior/historical performance
   • Proprietary products: CLOUDPORT (cloud playout), THUNDERSTORM (server-side ad insertion), PLANNER (scheduling), CONNECT (distribution marketplace), ANALYTICS (performance dashboards)
   • In-house tech stack reduces third-party dependencies, enables faster product iteration
   • 652 employees (74%) in technology/engineering – R&D-driven innovation engine
6. Strong Marquee Investor Backing – Premji Invest, Norwest, Accel:
   • Raised ₹1,500 cr+ over 8 funding rounds from marquee VCs
   • Premji Invest (Azim Premji), Norwest Venture Partners, Accel India, General Atlantic (Series F), others
   • Institutional credibility – sophisticated investors validated business over 18 years
   • Anchor book ₹804 cr (42 institutions): SBI MF, ICICI Prudential MF, HDFC MF, Fidelity, Motilal Oswal, HDFC Life, Tata MF, Franklin Templeton – strong institutional demand
7. Zero Debt, Strong Balance Sheet – ₹859 Cr Net Worth (H1 FY26):
   • Net debt-free (Sep 2025) – no borrowings
   • Net worth ₹859.34 cr (H1 FY26), ₹509.45 cr (FY25) – equity-funded growth
   • Cash & equivalents ₹492 cr (FY25) – IPO adds ₹816 cr fresh = ₹1,308 cr cash cushion
   • Strong balance sheet supports AWS commitment (₹2,418 cr / 6 years) and M&A strategy

Key Risks & Challenges

1. ONLY ONE PROFITABLE QUARTER – 17 Years Losses, Sustainability Unproven:
   • H1 FY26 ₹6.47 cr PAT is FIRST PROFIT after 17 YEARS (2008-2024) of continuous losses
   • Cumulative losses: ₹635 cr (FY23-25 alone) + earlier years (likely ₹1,000+ cr total)
   • ONE profitable quarter does NOT establish sustainable profitability – could reverse
   • EBITDA margin 8.26% (H1 FY26) still LOW for SaaS (global SaaS benchmarks 20-30%)
   • IPO timing suspicious: VCs exiting (54.4% OFS) immediately after first profitable quarter suggests profit peak concerns
2. MAJOR VC EXIT (54.4% OFS) – Premji Invest, Norwest, Accel SELLING After First Profit:
   • ₹972.62 cr OFS (54.4% of IPO) vs. ₹816 cr fresh (45.6%) – MAJORITY is investor exit, NOT growth capital
   • Premji Invest, Norwest Venture Partners, Accel India – sophisticated early-stage VCs – SELLING after 18-year hold
   • Exit timing: Immediately after H1 FY26 first profit – suggests VCs believe valuation peaked
   • If business had strong multi-year profit visibility, VCs would hold for listing gains – exit indicates limited upside
   • Retail investors buying at peak valuation while smart money (VCs) exiting – RED FLAG
3. EXTREME US Concentration – 73% Revenue from America Region:
   • America region: 73.23% of revenue (H1 FY26), 72.86% (FY25) – EXTREME geographic concentration
   • Single-country dependency creates massive risk: US recession, ad spend cuts, regulatory changes, trade wars
   • Europe 16-17%, Asia Pacific 7%, Middle East/India <3% – limited diversification
   • US advertising market (cyclical) drives 70%+ of revenue – economic slowdown directly impacts
   • Currency risk: 73% USD revenue but INR cost base creates forex volatility
4. MASSIVE AWS Commitment ₹2,418 Cr (6 Years) – “Asset-Light” with Heavy Infrastructure Opex:
   • AWS commitment ₹2,418 cr over 6 years (May 2025-Apr 2031) = ₹403 cr/year ongoing opex!
   • IPO funds ₹816 cr (fresh) cover only 1.4 years of AWS commitment – requires sustained cash generation
   • “Asset-light SaaS” narrative belied by ₹403 cr/year cloud infrastructure spend
   • Cloud/tech costs 26.48% of total expenses (H1 FY26) + employee costs 53.40% = 79.88% of opex
   • If revenue growth slows or margins compress, AWS commitment becomes unsustainable burden
   • Locked into AWS ecosystem – switching costs prohibitive, pricing power limited
5. Low Promoter Holding 14.14% Post-IPO – Skin in Game Concerns:
   • Promoter holding drops from 15.76% (pre-IPO) to 14.14% (post-IPO) – LOW for Indian IPO standards
   • Multiple funding rounds diluted founders to minority stake – typical for VC-backed but reduces alignment
   • Promoters NOT participating in OFS (positive) but dilution from fresh issue reduces control
   • Low promoter holding raises governance concerns – decisions may favor institutional investors over long-term shareholder value
6. Intense Competition – Harmonic, Imagine, Brightcove, AWS, Google, Kaltura:
   • Global competitors: Harmonic (NASDAQ: HLIT), Imagine Communications, Brightcove (NASDAQ: BCOV), Kaltura (NASDAQ: KLTR), Vimeo
   • Cloud giants: AWS Elemental MediaLive, Google Cloud Video, Microsoft Azure Media Services – deep-pocketed, integrated offerings
   • Regional competitors: SSIMWAVE (video quality), Akamai (CDN), Edgio (edge computing/video)
   • Price-based competition: Cloud platforms (AWS, Google) can cross-subsidize video services with core cloud business
   • RHP claims “no listed peers” but faces competition across product lines – overstated differentiation
7. Customer Concentration – Top 10 Customers 31% Revenue (FY25):
   • Top 10 customers: 31% of FY25 revenue (₹361 cr out of ₹1,163 cr)
   • Loss of 1-2 major customers (NBCUniversal, Warner, Fox-tier accounts) would materially impact revenue
   • Media industry consolidation (Paramount-Skydance, Warner-Discovery mergers) creates customer concentration risk
   • B2B SaaS churn: If FAST platforms in-source infrastructure (build vs. buy), Amagi loses recurring revenue
8. Slowing Revenue Growth – 32% (FY24-25) to 21% Annualized (H1 FY26):
   • Revenue growth decelerating: 30.7% CAGR (FY23-25) → 32% (FY24-25) → 21% annualized (H1 FY26)
   • H1 FY26 revenue ₹704.82 cr annualizes to ₹1,410 cr = 21% YoY growth (vs. 32% FY24-25)
   • Law of large numbers: Sustaining 30%+ growth harder at ₹1,400+ cr revenue base
   • Customer adds slowing: 463 (FY25) → 481 (Sep 2025) = 18 net adds in 6 months (decelerating pace)
   • If growth slows to teens while EBITDA margin remains single-digit, valuation narrative collapses
9. Employee Cost Heavy (53.40% of Expenses) – Opex-Intensive Despite “Asset-Light”:
   • Employee costs ₹376.51 cr (53.40% of total expenses, H1 FY26)
   • 884 employees (652 in tech/engineering) – highly paid talent (average ~₹54L/employee/year in H1 FY26)
   • Opex structure: 53.40% employee + 26.48% cloud/tech = 79.88% fixed opex – limited operating leverage
   • “Asset-light SaaS” with 80% fixed opex creates margin pressure if revenue growth slows
   • Talent retention risk: 74% workforce in high-demand tech roles – attrition threatens product innovation
10. FAST Market Maturation – Growth Narrative May Not Sustain:
    • FAST platforms maturing: Pluto TV, Samsung TV Plus, Roku Channel (major customers) already scaled
    • Ad-supported streaming cannibalization: Netflix, Disney+, Amazon with ads competing for same advertisers
    • Advertiser budget shifts: CTV ad spend growth (14.1% CAGR) decelerating from pandemic highs
    • Regulatory risks: Privacy laws (GDPR, CCPA) impact targeted advertising, reducing CTV ad effectiveness
    • Platform consolidation: If major FAST platforms merge or in-source infrastructure, Amagi loses large customers
11. Valuation Concerns – ₹7,810 Cr Market Cap for ₹6.47 Cr Annualized PAT:
    • Post-IPO market cap: ₹7,810 cr at ₹361 upper band
    • H1 FY26 PAT ₹6.47 cr annualized = ₹13 cr/year → PE ~600+! (absurd valuation)
    • Even assuming FY26 PAT scales to ₹50-100 cr (4-8X H1), PE 78-156X (expensive for unprofitable track record)
    • Price-to-sales: ₹7,810 cr / ₹1,410 cr (FY26E) = 5.5X P/S (premium SaaS multiples but unproven profitability)
    • Comparable listed SaaS: Global SaaS P/S multiples 3-8X for profitable high-growth companies; Amagi at 5.5X with ONE profitable quarter is rich