Amagi (AMAGI) Q2 FY27 Profit Jumps 30-Fold as Operating Leverage Kicks In
Amagi Media Labs posted a record ₹476 crore revenue and a 30-fold surge in net profit, driven by operating leverage and a sharp drop in indirect costs.
Amagi's Q2 FY27 results show a 27% revenue rise to ₹476 crore and a near 30-fold profit jump to ₹75 crore. The surge was powered by operating leverage, with adjusted EBITDA more than doubling to ₹89 crore.
For Amagi Media Labs, the September quarter was a showcase of operating leverage finally arriving at scale. The cloud broadcast platform, which helps media companies launch and monetize channels, delivered its highest-ever revenue while profitability exploded.
Revenue rose 27% year-on-year to ₹476 crore, continuing a steady climb. The real story was the bottom line, where net profit surged nearly 30-fold to ₹75 crore. This pushed the net profit margin to 15.7%, a dramatic 1,490 basis point improvement from a year ago.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 475.82YoY +27% | 436.88 | 375.00 |
| Profit (₹ Cr) | 74.84YoY +2395% | 33.91 | 3.00 |
| Net Profit Margin (%) | 15.7YoY +1862% | 7.8 | 0.8 |
The Engine Behind the Margin Surge
The profit surge was not just a function of higher sales. According to The Hindu BusinessLine, adjusted EBITDA more than doubled to ₹89 crore, with the margin expanding 7.6 percentage points to 18.7%. This reflects a significant drop in indirect operating expenses as a share of revenue, which fell to 49.3% from 58.6% a year ago.
CEO Baskar Subramanian cited “greater operating discipline” in scaling the business. The company also benefited from lower employee stock option expenses and a reduced effective tax rate, as noted by Moneycontrol.
AI and a Strong Market Tailwind
Growth was broad-based across its streaming, monetization, and cloud modernization segments. The company is riding a powerful trend, with its own data showing global Free Ad-Supported Streaming TV (FAST) viewing hours grew 55% year-on-year in the June quarter.
During Q2, Amagi launched four new AI products and saw its NEWSPULSE platform go live at a major US broadcast group. Management sees AI as central to helping customers operate efficiently and maximize content revenue.
A Valuation Conundrum
The stellar print was met with a positive market reaction, with the stock rising over 4% on the results date. However, it trades at a significant premium, with a P/E of 99.1 against an industry average of 19.0.
This valuation gap underscores the high growth expectations baked into the price. Investors are betting that the operating leverage demonstrated this quarter is sustainable, not a one-off.
Key Points
- Amagi's Q2 FY27 net profit jumped to ₹75 crore, a nearly 30-fold increase year-on-year, as revenue grew 27% to ₹476 crore.
- Profitability soared due to operating leverage, with adjusted EBITDA margin expanding 760 basis points to 18.7%.
- The company is capitalizing on strong FAST channel growth and launched four new AI products during the quarter.
- Despite robust fundamentals, the stock trades at a steep premium to the industry, reflecting high growth expectations.
Hexa Perspective
This quarter marks a pivotal shift for Amagi from a high-growth, investment-heavy model to one where scale is visibly driving profitability. The 790 basis point sequential margin expansion is the clearest signal yet that its platform economics are working.
The sustainability of these margins now hinges on maintaining revenue growth above 25% while keeping a tight lid on indirect costs. With a debt-free balance sheet and ₹1,774 crore in cash, Amagi has ample fuel to invest in its AI-led growth thesis, but the valuation leaves little room for execution stumbles.
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