Key Financial Figures

Revenue Performance:

  • Q1 FY27 Revenue: INR437 crores (highest ever quarterly revenue)
  • Year-over-Year Growth: 32% reported, 21% constant currency
  • Sequential Growth: 10% quarter-over-quarter

Profitability Metrics:

  • Adjusted EBITDA: INR50 crores, up 201% YoY
  • Adjusted EBITDA Margin: 11.5% (vs 5.0% in Q1 FY26 and 10.3% in FY26 full year)
  • PAT: INR34 crores
  • PAT Margin: 7.5% (vs 1.1% in Q1 FY26)
  • Excluding one-time non-cash FX charge of INR6 crores, PAT would have been INR40 crores

Segment Performance:

  • Streaming Unification: INR249 crores, up 39% YoY
  • Monetization and Marketplace: INR110 crores, up 30% YoY
  • Cloud Modernization: 17% reported growth (32% growth excluding prior year base effect)

Cash Position:

  • Cash and investments: INR1,616 crores (including IPO proceeds)
  • Operating cash outflow: INR65 crores (improved from INR141 crores in Q1 FY26)
  • Free cash outflow: INR68 crores (improved from INR143 crores in Q1 FY26)

Operational Metrics

  • Content processed: 959,000 hours (+43% YoY)
  • Delivery endpoints: 9,900+
  • Distributors: 451 (+21% YoY)
  • Ad impressions: 13.6 billion (+59% YoY, +21% sequentially)
  • Trailing 12-month Net Retention Rate (NRR): 125%

Strategic and Business Updates

AI Initiatives:

  • 10 active AI pilots underway
  • Major US news network selected Amagi's Newspulse to transform into AI-first newsroom
  • AI credits model introduced for agentic media operations
  • Plan to introduce broader AI product suite at industry conferences in Q2
  • Estimated TAM: $17 billion, with AI potentially doubling this opportunity

Customer Momentum:

  • Managed 104 FIFA World Cup matches with 100% availability for US broadcaster
  • Supported 325 events and 450 hours of programming for another US broadcaster
  • Global wins across US, Australia, Middle East, India, and APAC regions
  • Serving 400+ content providers, 400+ distributors, and 80+ advertisers

Market Position:

  • Only ~10% of playout has moved to cloud, indicating significant runway
  • Streaming now represents nearly half of US television viewing
  • Advertising becoming central to streaming economics
  • 27% of broadcasters currently use AI in some form

Management Commentary

Operating Leverage:

  • Incremental revenue flow-through to EBITDA at 31% (3x reported EBITDA margin)
  • R&D decreased from 27% to 21% of revenue due to platform scaling
  • Sales and marketing plus customer success reduced from 27% to 23% of revenue
  • Gross margin at 67.3% (down 2.2 points YoY but up 0.5 points sequentially)
  • Generated $282,000 monthly run rate savings from cloud cost optimization

Gross Margin Context:

  • Movement reflects segment mix, live event delivery intensity, select commercial engagements, and prior year accounting base effect
  • Management expects gross margin to remain in 67-69% range for the year
  • AI investments may cause initial margin dip with recovery expected over 3-4 years

Future Outlook:

  • Q2 FY26 had revenue recognition timing benefit creating ~600 basis point headwind for Q2 YoY compare
  • H1 FY26 represented 47% of full year revenue and 37% of full year adjusted EBITDA
  • EBITDA historically more back-half weighted due to annual merit increases in Q1
  • Actively evaluating 10 M&A opportunities (evaluated 33 since January, passed on 23)

Participants

  • Management: Baskar Subramanian (Managing Director and CEO), Vijay NP (CFO), SGA (Investor Relations)
  • Analysts: Representatives from Dalal & Broacha Stock Broking, ICICI Securities, Kotak Securities, Spark Institutional Equities, and IIFL Capital