Built in India and deployed worldwide, Amagi sells a cloud-based operating system that media companies use to run, distribute and monetize TV channels without owning broadcast infrastructure. Nearly 90% of its revenue comes from the US and Europe, the world’s largest advertising markets, and no Indian peer operates at a comparable scale.
Even globally, few companies span the full cloud value chain of media distribution the way Amagi does, according to its offer documents. While that positioning gives the company a long growth runway, the lack of clear listed comparables leaves investors without an obvious benchmark.
Valuation reset
With no peers to anchor valuation, investors are being asked to judge Amagi largely on its earnings trajectory and how quickly this niche technology becomes mainstream, an uncertainty that is shaping both the pricing of the IPO and expectations from the stock, analysts said.
That uncertainty may help explain why Amagi is entering the public market at a sharply lower valuation than its last private round, as investors grow more value-conscious amid volatile equities and uneven earnings. At roughly 5.5x annualized H1FY26 revenue, the company has opted for a valuation of about 7,810 crore ($869 million) at the upper end of its 343-361 per share price band, as per a mint analysis. That is well below the $1.4 billion valuation it commanded in 2022 after raising $100 million from General Atlantic.
That positioning makes Amagi unique but difficult to price, said Yatin Singh, CEO of investment banking at Emkay Global Financial Services, adding that the absence of clear benchmarks leaves investors to judge its earnings trajectory and how quickly the technology goes mainstream.
Uday Patil, executive director at PL Capital Markets, views Amagi’s valuation as realistic given current market conditions and the fact that it turned profitable only in the first half of FY26 after almost nine years in the business. The company reported a net profit of 6.5 crore during the period, against a loss of 66 crore in H1FY25.
operating leverage
With valuation multiples compressing, operating metrics matter more. On that front, analysts point to Amagi’s strong customer retention and ability to generate higher revenue from existing clients—factors that could drive operating leverage as the business scales.
The company posted net revenue retention (NRR) of 127% in H1FY26, above the 120% industry benchmark, according to its red herring prospectus (RHP). Patil said NRR has risen as clients onboard more channels, fill more ad inventory and expand into new geographies, driven by the growing adoption of free ad-supported streaming television (FAST).
Such trends are typical of a scaling business, he said, though NRR should normalize over time.
High NRR signals deeper client relationships and helps absorb sales and marketing costs, supporting profitability. To strengthen operating leverage further, Amagi plans to expand higher-margin offerings such as live TV, ad-tech and analytics tools that guide clients’ scaling decisions, management said at a press conference in Mumbai.
The company is also embedding agentic artificial intelligence (AI) across its platform to reduce operating costs in high-volume FAST channels, improve ad yields and sharpen analytics.
Baskar Subramanian, cofounder and chief executive officer of Amagi, said the company is training its AI models on proprietary data accumulated over years of running hundreds of channels. “The most immediate impact will be on content preparation, while AI-led auto-scheduling is already live and improving productivity,” he added.
Patil said these initiatives could further strengthen customer retention and lift average revenue per user over time, building on client relationships that already average about four years among Amagi’s largest customers, according to the RHP.
Concentration risk
That strength, however, comes with concentration risks, experts say. The top five customers contribute about 30% of revenue, while the US accounts for nearly three-fourths of sales, as outlined in the RHP, exposing Amagi to client-specific swings and US-led disruptions.
Advertising exposure adds another layer of vulnerability. About 25% of Amagi’s revenue is ad-linked, making it sensitive to downturns in the US advertising cycle, Patil cautioned.
“If the advertising market is weak and CPMs (cost per impression) or fill rates decline, it will impact us as well,” Amagi’s Subramanian said. “That said, historical seasonality in this business has been very marginal.”
For now, investors appear willing to look past these risks, betting that Amagi’s long growth runway will help it diversify geographically and reduce concentration over time. Cloud-based operations currently account for just 10% of the global media and entertainment market but are projected to expand to 40-60% over the next three to five years, according to the RHP.
“That outlook offers a credible medium-term growth roadmap for the company, even as there could be disruption risks as the industry matures,” said Anant Mundra, partner at Mytemple Capital, a wealth management firm.
“Given their 30% revenue CAGR over the past two years and the conservative valuation, I feel confident recommending this IPO to my clients tactically, with a reasonable chance of a listing pop,” Mundra added.
Reflecting that sentiment, Amagi’s unlisted shares are currently trading at a roughly 12% premium to the 361 upper price band in the gray market, indicating healthy investor appetite.
