Amagi operating margin rises 6.57 pp, still below IT peer median
Profit growth was helped by slower expense growth, a lower tax rate and other income contributing 31.57% of pre-tax profit.
Filed 05 Nov 2026, 10:34 IST · Amagi Media Labs Ltd (AMAGI)
Key takeaways
- Consolidated operating margin rose 6.57 percentage points QoQ as revenue increased +8.91% while expenses grew +1.24%.
- Net profit increased +120.70% QoQ to Rs 74.84 cr, but other income accounted for 31.57% of pre-tax profit and the tax rate fell 6.71 percentage points.
- Operating margin at 13.40% remained 4.91 percentage points below the 18.31% median for 60 reported IT peers.
Price around the results
Revenue growth outpaced expenses in Q2FY27
On a consolidated basis, revenue rose +8.91% QoQ while expenses increased only +1.24%, lifting operating profit by +113.61%. That operating leverage drove the operating margin up from 6.83% in Q1FY27 to 13.40%.
Other income and tax rate lifted reported profit
Pre-tax profit increased +104.36% QoQ, with other income rising +48.21% and contributing 31.57% of pre-tax profit. Net profit grew faster at +120.70% as the tax rate declined from 16.09% to 9.38%; interest expense also fell 3.51%.
Margin improved, but remains below the IT peer median
The operating margin improved 6.57 percentage points from Q1FY27, marking a sharp sequential recovery. At 13.40%, it was 4.91 percentage points below the 18.31% median among 60 IT companies that have reported, placing Amagi 18th from the bottom.
Management highlighted cloud expansion and new products
Management said a local news network is scaling live newsroom playout to 60 regional feeds across more than 30 markets, while a Middle East entertainment network is moving 15 channels from on-premises playout to cloud operations. The company said Scripps expanded its use of THUNDERSTORM and ADS PLUS in the Tablo streaming app, and that a leading US broadcast group went live with NEWSPULSE. The presentation also said IDC MarketScape 2026 named Amagi a Leader in the worldwide AI-driven business cycle in the media industry.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹476 cr | ₹437 cr | +8.91% |
| Other income | ₹26 cr | ₹18 cr | +48.21% |
| Expenses | ₹412 cr | ₹407 cr | +1.24% |
| Operating profit | ₹64 cr | ₹30 cr | +113.61% |
| Operating margin (%) | 13.40% | 6.83% | — |
| Interest | ₹1 cr | ₹1 cr | -3.51% |
| Depreciation | ₹6 cr | ₹6 cr | +3.90% |
| Profit before tax | ₹83 cr | ₹40 cr | +104.36% |
| Tax | ₹8 cr | ₹7 cr | +19.23% |
| Net profit | ₹75 cr | ₹34 cr | +120.70% |
| EPS (₹) | ₹3.28 | ₹1.49 | +120.13% |
Operating margin of 13.40% compares with a Information Technology sector median of 18.31% across 60 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- A local news network moved live newsroom playout in two markets to Amagi CLOUDPORT.
- Scripps expanded Amagi THUNDERSTORM and ADS PLUS to monetize in-content ads in the Tablo streaming app.
Expansion
- A local news network is scaling live newsroom playout to 60 regional feeds across more than 30 markets.
- A Middle East entertainment network is replacing on-premises playout across 15 channels with cloud operations.
New products
- KT Studio Genie launched vertical-video channels to bring mobile-first content to television screens.
- A leading US broadcast group went live with Amagi NEWSPULSE for national-newsroom summaries.
Competition
- IDC MarketScape 2026 named Amagi a Leader in the worldwide AI-driven business cycle in the media industry.
What to watch
- Whether consolidated operating margin holds above 13.40% after the 6.57-percentage-point QoQ increase.
- Whether expenses continue to grow more slowly than revenue after +1.24% versus +8.91% QoQ.
- Whether other income's 31.57% share of pre-tax profit changes in the next quarter.