ICICI Securities has initiated its coverage for Amagi Media Labs Ltd. with a 'buy' rating and a target price of Rs 700, implying a nearly 24% upside to its current market price.
The brokerage noted strong operationality as adjusted earnings before interest, taxes, depreciation and amortisation turned positive in fiscal year 2026.
Further, ICICI Securities expects margings to improve on the back of operating leverage, along with AI products. These products will, in turn, also drive revenue higher.
Revenue growth is also aided by cross-selling and upselling opportunities within existing customers. The top 10 customers have been with Amagi for over four years with near-zero churn over the last three years, according to the brokerage.
Strong customer stickiness with products has been embedded in mission-critical workflows, the brokeraege outlined.
Cloud migration, ICICI securities pointed out, remains at an early stage and offers a compelling Total Cost of Ownership (TCO) benefit, compared to on-premise infrastructure.
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Amagi Labs' Robust Q1 FY27
Amagi Media Labs saw a well-rounded growth in their first quarter earnings for the fiscal year 2027, with numbers improving across all key parameters.
The company reported a multifold surge in its year-on-year net profit to Rs 34 crore from Rs 4 crore in the first quarter last year.
Revenue for the June quarter increased by 32.4% year-on-year to Rs 436.8 crore from ₹330 crore in the corresponding period of the last fiscal.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) swing into a profit of Rs 29.7 crore compared to a loss of Rs 1.3 crore in the year-ago period.
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Amagi Labs' Share Price History
The shares have climbed over 56% year-to-date, and closed 0.17% higher at Rs 563 on Friday.
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