Nazara Technologies FY26: ₹1,829cr, FY27 EBITDA target

Concall context and what investors tracked

Nazara Technologies’ Q1 FY27 earnings call recording (dated August 03, 2026) focused heavily on how FY26 ended and what that implies for FY27 execution. Management described FY26 as a pivotal year, led by stronger profitability and improved cash generation. Alongside the call commentary, the material also carried a set of “quick details” such as market capitalisation, CMP, and the last reported quarterly margin. The discussion matters because Nazara is balancing growth in core gaming with integration-led margin improvement, while also dealing with platform and regulatory uncertainties. The company’s stated FY27 profitability ambitions were a central theme of the call. Some parts of the update were also framed around consolidation benefits and pending approvals.

FY26 at a glance: revenue, EBITDA, and margin expansion

Management said consolidated FY26 revenue rose 13% year-on-year to ₹1,829 crore. EBITDA for FY26 was stated at ₹255 crore, up 66% year-on-year, with EBITDA margin expanding to 13.9%. The company also highlighted that Q4 FY26 EBITDA margin reached 19.5%, described as almost doubling year-on-year. The call emphasised that FY26 delivered the highest-ever EBITDA in absolute terms as per management commentary in the recording. Separately, a results snapshot also referenced FY25 annual EBITDA of ₹153.5 crore on revenues of ₹1,624 crore, providing a comparison point for the step-up into FY26. The narrative from management was that the year combined growth with better cost and margin discipline.

Q4 FY26 performance: profits rose even as revenue softened

For Q4 FY26, management cited revenue of ₹398 crore and EBITDA of ₹78 crore, translating to a 19.5% EBITDA margin. Another financial highlight section listed “revenue from operations” for Q4 FY26 at ₹397.78 crore, and total income at ₹448.47 crore. That same section reported Q4 FY26 PAT at ₹55.70 crore, versus ₹8.84 crore in Q3 FY26 and ₹4.07 crore in Q4 FY25. A separate write-up also summarised the quarter as a sharp recovery in net profit to ₹55.7 crore, while total revenue was about ₹397 crore to ₹397.8 crore. Put together, the information indicates profitability improved meaningfully in the quarter, while the topline was broadly flat to slightly lower sequentially in some reported line items.

Segment and business-line highlights shared on the call

Within gaming, management said the gaming business delivered strong growth and profitability, with FY26 revenue growing 107% year-on-year to ₹1,072 crore. The PC and console publishing business was highlighted for profitability, with FY26 revenue of ₹261 crore and EBITDA of ₹101 crore, implying a 39% EBITDA margin. Offline gaming businesses, including Smash and Funky Monkey, were said to have delivered profitability in FY26 with revenue of ₹99 crore and EBITDA of ₹27 crore. Management also stated that adtech delivered strong growth and profitability, with both revenue and EBITDA up 32% year-on-year, without disclosing the absolute base in the provided text. These disclosures collectively position core gaming and publishing as key earnings contributors, with offline gaming also contributing profits in FY26.

Cash generation and exceptional items in the FY26 numbers

Management stated that pre-tax operating cash flow grew 81% year-on-year to ₹213 crore. In the wider FY26 consolidated highlights, revenue from operations was listed at ₹1,828.98 crore, consistent with the ₹1,829 crore figure cited on the call. Total income for FY26 was reported at ₹3,072.56 crore, and the notes attributed this to an exceptional gain of ₹1,098.46 crore linked to the de-subsidiarisation of erstwhile subsidiary Nodwin. The consolidated FY26 PAT was reported at ₹81.94 crore, up 60.79% year-on-year.

Nodwin and associates: turnaround, write-offs, and fundraising plan

For Nodwin, described as an associate company in the call notes, management said it moved from a loss of ₹14 crore in FY25 to a profit of ₹21 crore in FY26. At the same time, the risks section flagged that a Nodwin goodwill write-off impacted associate losses, indicating that associate accounting and exceptional items remain a sensitivity. Management also outlined an intention to target $100 million to $100 million fundraising for Nodwin. The update linked part of the FY27 outlook to BlueTile consolidation and stated that EBITDA is expected to double in FY27 following that consolidation. These points together indicate that corporate structure changes, consolidation, and capital actions are important moving parts for FY27.

Risks flagged: traffic shocks and pending regulatory approvals

The material explicitly called out that Google core updates hurt Sportskeeda traffic, a risk for a digital media property dependent on search-driven visits. It also noted that regulatory approvals for acquisitions are pending, implying timelines for M&A-led expansion may not be fully in the company’s control. Separately, a detailed highlights section stated the company recognised an impairment loss of ₹914.70 crore (consolidated) and ₹988.94 crore (standalone) on its investment in associate company Moonshine Technology Private Limited. The reason cited was the prohibition of online money games following the enactment of the Promotion and Regulation of Online Gaming Act, 2025. These items underscore that platform dependence and regulatory shifts can meaningfully affect reported earnings and asset values.

FY27 targets and what the company said about tracking

Nazara’s core gaming segment was described as the primary growth engine, with an aim for 20% to 25% year-on-year revenue growth and EBITDA margins in the 20% to 25% range. Management said it is tracking toward an annual EBITDA target of ₹300 crore for FY27, which requires a consistent quarterly run-rate of about ₹75 crore. The material repeated that management believes it is on track to achieve or surpass ₹300 crore group EBITDA in FY27. Another note added that Nazara expects strong organic growth and margin expansion in FY27 driven by “Centers of Excellence” initiatives and AI implementation across studios and functions. These are directional statements, but the only explicit numeric target provided for FY27 profitability is the ₹300 crore EBITDA goal.

Market snapshot and upcoming results timing

The “quick details” section listed market cap at ₹11,288.24 crore and CMP at ₹303.65, along with the last reported quarterly EBITDA margin of 19.5%. Another snapshot listed price at ₹284, market cap at ₹11,100 crore, and P/E ratio at 11.5, and also described the company as showing a below-average growth signal. The material also included a one-day move of -4.06% (down ₹11.75) as on May 29, 2026, and a separate performance table showing returns such as -17.00% over one month and +17.94% over one year. On results timing, the text said the Q1 FY27 results date has not been officially announced and is typically declared in July or August 2026. It also referenced a board meeting scheduled for August 03, 2026 to consider audited financial results.

Key figures table (reported and stated in the provided text)

Why the update matters: what the numbers actually indicate

The FY26 disclosures show that Nazara’s profitability improved faster than revenue, with EBITDA up 66% on 13% revenue growth and margins expanding to 13.9%. The Q4 margin print of 19.5% is central because it sets the near-term benchmark investors may use to judge whether a ₹75 crore quarterly EBITDA run-rate is feasible. At the same time, the impairment and exceptional-item disclosures demonstrate that reported earnings can be influenced by regulatory outcomes and portfolio reclassification, not only operating performance. The Sportskeeda traffic impact from Google core updates highlights a non-financial operational risk that can still affect revenue quality and stability. Finally, the combination of acquisition-approval pending items and BlueTile-led consolidation suggests that FY27 execution is partly tied to integration and regulatory timelines that sit outside quarterly operating metrics.

Conclusion

Nazara’s call commentary and FY26 disclosures centre on a clear profitability improvement, with FY26 revenue at ₹1,829 crore and EBITDA at ₹255 crore, and Q4 margins reaching 19.5%. For FY27, management has reiterated a ₹300 crore group EBITDA target and described itself as on track, while also flagging search-traffic disruptions, goodwill and impairment impacts, and pending acquisition approvals as key risks. The next concrete checkpoint remains the Q1 FY27 results announcement, which the material says is typically made in July or August, with exchange filings expected after the board meeting.