Amagi Files Red Herring Prospectus for Upcoming IPO

Bengaluru’s SaaS company Amagi has submitted its red herring prospectus in preparation for an upcoming initial public offering. The financial details presented in this filing reveal that the company achieved profitability in the first half of FY26, driven by significant revenue growth and enhanced cost effectiveness.

According to Amagi’s financial statements included in the red herring prospectus, operating revenue surged by 34.5%, reaching Rs 705 crore in H1 FY26, up from Rs 524 crore in H1 FY25. The majority of this revenue stems from distribution and payout services, accounting for nearly 98% of total operating income. Revenue from this segment experienced a growth of 36%, totalling Rs 690 crore during this timeframe.

In comparison, revenue from AdPlus remained stable at Rs 15 crore. Including other income of Rs 29 crore, Amagi’s overall income rose to Rs 734 crore in H1 FY26, up from Rs 551 crore in H1 FY25.

Cost Analysis

Employee benefit expenses, the largest component of costs, climbed by 12.5% to Rs 386 crore, making up over 53% of total costs. Communication expenses saw a significant increase of 32.5%, reaching Rs 216 crore, which constituted nearly 30% of total expenditures. Other overhead costs, like legal and professional fees, decreased to Rs 27 crore, while travel and miscellaneous expenses amounted to Rs 71 crore during this period. Consequently, total expenses rose at a more modest rate of 18.2%, amounting to Rs 722 crore in H1 FY26, compared to Rs 611 crore in H1 FY25.

Profitability Milestone

With its revenue growth outpacing the rise in expenses, Amagi posted a profit of Rs 6.5 crore in H1 FY26, a turnaround from a loss of Rs 66 crore in H1 FY25. The company’s return on capital employed (ROCE) and EBITDA margin were recorded at -1.51% and -0.57%, respectively.

Financial Position

As of September 2025, this Bengaluru-based firm reported cash and bank holdings of Rs 397 crore, with total current assets amounting to Rs 1,177 crore.

Upcoming IPO Details

Amagi has set a price range of Rs 343–Rs 361 per share for its forthcoming IPO. The public issue, valued at Rs 1,788.62 crore, is scheduled to open for subscription on January 13 and will close on January 16. The anchor book is set to open on January 12, with a lot size fixed at 41 shares, resulting in a minimum retail investment of approximately Rs 14,800 at the higher end of the price range.

Early and growth-stage investors in the company, including Premji Invest, Accel India, and Norwest Venture Partners, are poised to realise significant returns on their original investments, with Premji Invest noted to achieve the highest gain at 14 times their initial investment.