Nazara Technologies Q1 FY27: FY26 revenue ₹1,829 crore

Key takeaway from the earnings call

Nazara Technologies used its Q1 FY27 earnings call setting to recap FY26 performance and lay out what changes once Bluetile Games and BestPlay begin consolidating into results. Management highlighted margin improvement in the March quarter, but also flagged execution risks around regulatory approvals and traffic volatility at Sportskeeda after Google core updates. The company also pointed to losses in associates where Nodwin’s goodwill write-off played a role.

FY26 performance snapshot: revenue up, profitability improved

Nazara said FY26 revenue grew 13% year-on-year to ₹1,829 crore. It also reported EBITDA of ₹255 crore, up 66%, which management described as its highest level so far. The March quarter stood out on margins, with Q4 EBITDA margin reaching 19.5%, nearly double on a year-on-year basis.

Management commentary also linked the margin expansion to a sharper focus on profitability and a changing mix across its businesses. The call framed FY26 as a year that combined operating improvement with a pipeline of inorganic moves, particularly in casual gaming.

Q4 FY26 numbers cited by the company

On quarterly performance, Nazara reported Q4 FY26 revenue of ₹398 crore and Q4 FY26 EBITDA of ₹78 crore, with the EBITDA margin again stated at 19.5%. Separately, the dataset also cited consolidated revenue as ₹397 crore for the quarter versus ₹406 crore in the previous quarter, describing this as a 2.2% sequential decline.

Profitability improved sharply quarter-on-quarter. Consolidated net profit was cited at ₹55.7 crore for Q4 FY26 compared with ₹8.8 crore in Q3 FY26. Another disclosure set out PAT at ₹55.70 crore in Q4 FY26, versus ₹8.84 crore in Q3 FY26 and ₹4.07 crore in Q4 FY25.

Bluetile and BestPlay: why the acquisition matters

FY26 included what management called its largest acquisition to date: Bluetile and BestPlay. The company said this expands Nazara’s casual gaming scale, adds “AI native” development capabilities, and brings in a rewarded engagement network.

Management indicated Bluetile and BestPlay will be consolidated from FY27 onwards, subject to regulatory approvals. On the call and in related notes, the integration scope referenced 17 casual puzzle IPs and 22 million MAUs, with investors watching how fast financial consolidation translates into reported growth.

Deal structure and payments: what has been disclosed

Nazara’s announced consideration for acquiring a 50% controlling stake in Bluetile Games and BestPlay Systems was $100.3 million (about ₹918 crore). One disclosure broke the upfront payment into $19.7 million (about ₹546 crore) payable at first close and $10.6 million (about ₹372 crore) within six months from first close.

The split between the two targets was also specified: Bluetile $18.4 million (₹809 crore) and BestPlay $11.9 million (₹109 crore). Separately, performance-linked earn-outs were described as a “most probable payout” of $18.2 million (about ₹898 crore), payable annually between 2028 and 2030, contingent on meeting agreed targets.

FY27 guidance and targets: EBITDA run-rate in focus

Management said it is tracking toward an annual group EBITDA target of ₹300 crore for FY27, implying a quarterly run-rate of about ₹75 crore. It also flagged that pro forma EBITDA is expected to double post-consolidation in FY27 once Bluetile is included.

Nazara’s CEO Nitish Mittersain said the Bluetile acquisition could potentially double the company’s revenue and EBITDA. He also indicated that the company expects organic growth of 15-20% in FY27, and that margins in the core gaming business could improve to nearly 25% by the end of FY27, from 19.5% in the March quarter.

Risks and watchpoints: traffic, associates, and approvals

The call highlighted that Google core updates hurt Sportskeeda traffic, a risk factor investors often track given the dependence of digital media properties on search-driven discovery. Nazara also pointed to Nodwin’s goodwill write-off as a factor impacting associate losses.

A near-term operational item remains pending regulatory approvals required for the Bluetile and BestPlay acquisition consolidation. Until approvals and consolidation timelines are clear, reported numbers may not fully reflect the scale implied by the acquisition announcement.

Fundraising plan for Nodwin

Nazara discussed a fundraising target of $100-200 million for Nodwin. The call positioned this as part of the broader plan to support scale in the esports and events ecosystem, while keeping an eye on profitability.

Stock and company snapshot around the results event

Nazara’s board meeting was scheduled for August 03, 2026, to consider audited financial results. Market data provided alongside the call included a CMP of ₹303.65 and market capitalisation figures cited in the ₹11,112 crore to ₹11,288.24 crore range. The stock was also described as trading at a P/E of 11.5 in the snapshot.

Market impact: what investors are likely to track

The key market variable is how quickly Bluetile and BestPlay move from “announced” to “consolidated” financials, because management’s FY27 expectation of doubling EBITDA is linked to that change. Separately, the Sportskeeda traffic impact underscores that parts of Nazara’s portfolio can face sudden volatility from platform algorithm changes, even when core gaming margins are improving.

The FY27 EBITDA target of ₹300 crore provides a measurable checkpoint. With a required quarterly run-rate of about ₹75 crore, investors have a simple metric to compare against quarterly updates once consolidation begins.

Analysis: why FY27 could look structurally different

Nazara’s FY26 story combined moderate top-line growth with a sharp improvement in operating profitability, culminating in a 19.5% EBITDA margin in Q4. FY27, however, is set up as a consolidation-led year, where acquisition accounting, approvals, and integration milestones may matter as much as organic execution.

If Bluetile and BestPlay are consolidated as planned, the reported scale and margins could change materially versus FY26. But the call also surfaced that execution will be judged not only on growth but also on how stable and repeatable margins remain, especially with known risks like search-driven traffic swings and associate-level volatility.

Conclusion

Nazara ended FY26 with revenue of ₹1,829 crore and a strong March-quarter margin print, while setting FY27 expectations around Bluetile consolidation and a ₹300 crore EBITDA target. The next key update points are regulatory approvals for the acquisition, clarity on consolidation timing, and progress on Nodwin’s targeted $100-200 million fundraising.