Amagi Media Labs Limited — Q3 FY26
Amagi delivered a strong Q3 FY26 with revenue of 404 crore (+22% YoY) and adjusted EBITDA of 58 crore (14.3% margin, doubling YoY).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
59%Questions answered3Evaded / deflected11Questions auditedMixedNumbers vs filing
Partial answer
High priority
Factors driving customer addition acceleration and gross margin buildup to 10% EBITDA.
Asked by Vive Anand, Ambit Capital
Management gave qualitative drivers but no quantitative breakdown of margin buildup.
no specific customer count breakdownno gross margin buildup details
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Question
What are the factors driving customer addition acceleration during the current quarter and how should we think about it? ... how should we think about the buildup of this 10% coming in from say gross margin and other costs.
Baser (CEO) and Vijay (CFO)
Baser: market transformation, cloud modernization, streaming growth. Vijay: steady state EBITDA margin ~10% excluding one-offs; leverage from S&M and R&D as revenue scales.
Declined
Medium priority
Disclosure of million-plus clients and top client growth.
Asked by Vive Anand, Ambit Capital
Management explicitly declined to provide the requested metrics.
deferred to annual disclosurerefused to disclose metric
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Question
Would you be able to disclose the million plus clients which I think you had disclosed in the DRHP and any further color on the growth of the top 10 clients?
Vijay (CFO)
On million-dollar annual revenue number, we'll disclose on annual basis at FY results. Top five customers growth not a specific metric we've disclosed.
Answered
High priority
Underlying revenue growth adjusted for timing differences.
Asked by Kawji Taruja, Kotak Securities
Management provided a specific growth range (25-30%) as requested.
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Question
If you had to adjust for the timing difference of revenues from your top pipeline what would the underlying revenue growth have been for the quarter?
Vijay (CFO)
I think we would be around 25 to 30% range cover that ... constant currency, we wouldn't see much of a departure so 25 to 30% is a reasonable zip code.
Evasive
Medium priority
LTV to CAC ratio and gross profit payback period.
Asked by Kawji Taruja, Kotak Securities
Management did not provide LTV/CAC or payback period, only directional S&M leverage.
no LTV/CAC givenredirected to S&M leverage
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Question
What is the LTV to CAC and maybe gross profit margin payback period? If you can just give a directional sense.
Baser (CEO)
We are limited by the amount of metrics we cannot disclose but our model lends itself to scaling with existing customers. S&M as % of revenue has gone down from mid-40% to 30% range.
Answered
Medium priority
R&D spending direction and leverage potential.
Asked by Kawji Taruja, Kotak Securities
Management gave specific percentage and trend, indicating leverage.
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Question
What would your R&D spending be at the ballpark? ... would that keep increasing or will you get leverage?
Vijay (CFO)
R&D is an area where we'll continue to get leverage. As of December quarter it's at about 21.8% (from 23.4% in H1). We don't capitalize AI expenses.
Partial answer
High priority
Relevance of Amagi amid AI reducing custom build costs.
Asked by Kawji Taruja, Kotak Securities
Management gave qualitative bullish view but no quantitative impact on business.
no specific metrics on AI impact
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Question
Do you want to weigh in on the relevance of Amagi at a time when the cost of custom build of applications may decline significantly?
Baser (CEO)
We are extremely bullish about AI. We are a vertical software company where deep domain understanding is critical. We see opportunity to deliver better human productivity for customers.
Answered
High priority
Nature of renegotiations with largest customers.
Asked by Manish Adukia, Goldman Sachs
Management explained it's intentional derisking, not routine, with specific concentration figure.
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Question
Is that in the regular course of business or is that like one-off and what drove these renegotiated contracts?
Baser (CEO) and Vijay (CFO)
Vijay: We opportunistically evaluate customers. Top five customers wouldn't be routine; we intentionally made a call to derisk concentration. Today top 10 is at 40%.
Answered
High priority
Timing impact on revenue from largest customers.
Asked by Manish Adukia, Goldman Sachs
Management explained the accounting mechanics clearly.
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Question
You mentioned the timing impact from revenue for some of the largest customers. What exactly was that?
Vijay (CFO)
One large customer has a perpetual license contract. Revenue recognition based on channel go-live. Last year evenly balanced; this year aggressive timeline pulled revenue to H1, so Q3/Q4 dialed up 3-4 points.
Partial answer
Medium priority
Breakdown of one-offs in EBITDA margin.
Asked by Manish Adukia, Goldman Sachs
Management gave qualitative factors but no specific contribution of each.
no quantitative breakdown of each one-off
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Question
14.5% reported adjusted margin versus 10% underlying. Can you give a qualitative pecking order of which one had the largest impact?
Vijay (CFO)
One was seasonality on revenue side, and we had robust collections improving ECL reserve rates. Those are the two broad strokes. Q3 is also the largest quarter due to festive season.
Evasive
Low priority
Proportion of managed services revenue and differentiation.
Asked by Manish Adukia, Goldman Sachs
Management did not provide the requested proportion, calling it not meaningful.
no specific percentage givendownplayed significance
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Question
What proportion of your revenue is managed services and how is it different from typical services companies?
Baser (CEO)
It's a very thin layer, low single digits, not even meaningful. We don't disclose that number. It's to provide 24/7 capability for high SLAs.
Evasive
High priority
Forward revenue and margin aspirations over three years.
Asked by Manish Adukia, Goldman Sachs
Management declined to give forward guidance, only referencing past trends.
no specific numbersdeferred to past performance
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Question
Would you be able to give any forward aspiration of what next three year revenue and margins may look like?
Vijay (CFO)
Hard to give prescriptive guidance. Our endeavor would be to consistently deliver the growth rates and margin trajectory of the last couple of years over the next two to three years.
Answered
Medium priority
Whether 10% EBITDA margin includes labor code provision adjustment.
Asked by Rishi Junjunwala, IFL Capital
Management confirmed the 10% includes the labor code provision adjustment.
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Question
When you say 10% is it also adjusted for the labor code provisions which is in the nature of 170 basis points?
Vijay (CFO)
You're right, it's adjusted for that. We'd be able to provide clarity on run rate impact as things evolve.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Adjusted EBITDA margin 14.5% reported, 10% underlying steady state | 14.5% | 14.3% | Matches filing |
| Underlying revenue growth 25-30% adjusted for timing | 27.5% | 22% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.