Nazara Technologies (NAZARA) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue reached ₹80,315 lakh (+53% YoY); EBITDA rose 93% to INR 120 crore, with margin up 311 bps to 14.9%.

• Gaming contributed 82% of Q2 revenue and all EBITDA before corporate costs; organic gaming revenue and EBITDA grew 11% and 17%.

• Bluetile Games and Bestplay Systems were acquired for USD 303 million and consolidated from 1 Aug 2026; Q2 results include them from that date.

Financial highlights

• Q2 profit after tax from continuing operations was ₹3,536 lakh, versus a loss of ₹3,393 lakh in Q2 FY26.

• H1 revenue was ₹123,192 lakh (+20% YoY) and EBITDA INR 166 crore (+52%); H1 net loss was ₹4,711 lakh versus profit of ₹1,741 lakh.

• Q2 advertising and promotion spend was INR 417 crore, including INR 250 crore spent by Bluetile in Aug–Sep 2026; total expenses rose 47% YoY.

• Q2 purchase, content and web-server costs fell to INR 70 crore from INR 170 crore, largely reflecting Nodwin deconsolidation in Aug 2025.

Outlook and guidance

• Management expects continued YoY growth, organic and inorganic, but gave no specific revenue, growth-rate or margin guidance.

• Priorities include integrating Bluetile COEs, embedding AI across studios and developing an ad-monetization COE; Bluetile targets 90% automation of core operations and shorter release cycles.

• Five additional Funky Monkeys centers are planned for FY27; Smaaash 2.0 launch awaits regulatory approvals.

• M&A is under review but not being pursued aggressively during Bluetile integration; future targets should fit the gaming strategy and central platform.

• Near-to-mid-term investment emphasis is on the U.S. and Europe, while maintaining an India presence; India is viewed as a larger opportunity as unit economics and digital adoption develop.