SBI Securities has initiated coverage on Amagi Media Labs Ltd with a NEUTRAL recommendation as the cloud-native media SaaS company prepares for its IPO in January 2026. Operating at the intersection of content providers, distributors, and advertisers, Amagi has built a proprietary “glass-to-glass” platform that powers streaming, monetization, and cloud modernization for global media clients. While revenue growth remains strong and profitability is within reach by FY26, high dependence on North American markets, continued operating losses, and premium valuation at 6.7x FY25 P/S temper near-term upside, warranting cautious investor participation.

IPO Snapshot and Investment Call

SBI Securities’ IPO note positions Amagi Media Labs Ltd (AMLL) as a differentiated SaaS play in the evolving global media and entertainment ecosystem, albeit with valuation and execution risks.
IPO Price Band: Rs 343 – Rs 361
Recommendation: NEUTRAL
Issue Period: January 13–16, 2026
Post-Issue Market Capitalization: Rs 7,461 – Rs 7,810 crore
At the upper band of Rs 361, the issue is valued at 6.7x FY25 Price-to-Sales, a multiple SBI Securities believes leaves limited room for immediate upside despite Amagi’s platform strength and improving financial trajectory

A Cloud-Native Operating System for Modern Media

Amagi Media Labs operates as a Software-as-a-Service (SaaS) platform enabling content providers and distributors to migrate from legacy broadcast infrastructure to agile, cloud-based video operations. The company supports video ingestion, preparation, distribution, and monetization across smart TVs, OTT platforms, FAST channels, and mobile applications.

Key platforms include:

Amagi NOW (Unified Streaming Operations)

Amagi CLOUDPORT (Live & Linear Playout)

Amagi STUDIO (Live Content Production)

Amagi CONNECT (Global Content Exchange)

Amagi ADS PLUS (Ad Monetization)

This end-to-end “glass-to-glass” architecture positions Amagi as a long-term technology partner rather than a transactional vendor, embedding itself deeply into customers’ daily media workflows

Network Effects Drive Competitive Advantage

Amagi operates a three-sided marketplace connecting content creators, distributors, and advertisers. As more content providers join the platform, distributor adoption rises, expanding audience reach and ad inventory, which in turn attracts advertisers.

This flywheel effect strengthens:

Platform stickiness

Monetization scalability

Barriers to entry

As of September 2025, Amagi served 400+ content providers, 350+ distributors, and 75 advertisers across 40+ countries, working with 45% of the top 50 global media companies by revenue, underlining its entrenched market position

AI-Led Platform Innovation Anchors Long-Term Growth

Artificial intelligence is embedded across Amagi’s product stack through Amagi INTELLIGENCE, enabling predictive and generative capabilities in content scheduling, ad yield optimization, and analytics.

Notable innovations include:

Amagi PLANNER, which automates video scheduling using historical engagement data

Predictive AI-based ad yield optimization tools

A growing IP portfolio with 10 granted patents

These investments reflect Amagi’s transition from infrastructure enablement to decision intelligence, improving both client outcomes and platform defensibility

Financial Trajectory: Losses Narrow, Breakeven in Sight

Amagi’s financials show strong revenue growth with steadily improving margins, suggesting a path to profitability.

EBITDA margin improved sharply from -51.0% in FY23 to -0.6% in 1HFY26, indicating operating leverage beginning to materialize. SBI Securities expects the company to turn profitable for the full year FY26

Revenue Mix Highlights Platform Depth

Streaming unification remains the dominant revenue contributor, reflecting increasing adoption of Amagi’s core cloud infrastructure.

Geographically, America accounts for over 72% of revenues, underscoring both scale and concentration risk

Key Risks Investors Must Weigh

SBI Securities flags several structural risks that warrant caution:

Geographical concentration: Heavy reliance on North America exposes Amagi to regulatory, economic, and pricing risks.
Cloud dependency: Platform stability is tied to third-party cloud infrastructure providers.
Technology execution: Live event delivery requires flawless coordination across geographies and systems.

These risks partially offset the company’s technological strengths and explain the conservative rating

Valuation and Peer Perspective

At the upper band, Amagi trades at:

FY25 P/S: 6.7x
EV/Sales: 5.6x

While lower than some listed SaaS peers, the valuation reflects expectations of future profitability rather than current earnings, as Amagi remains loss-making on an annual basis. SBI Securities notes the absence of a direct domestic peer, making broader SaaS comparisons more relevant than precise benchmarking.