/** Title: Nazara Q1 FY27: Gaming momentum, a CEO transition, and a USD 303 million scale-up bet */

Nazara Q1 FY27: Gaming momentum, a CEO transition, and a USD 303 million scale-up bet

Nazara Technologies reported a quarter where the operating momentum in gaming was stronger than what the consolidated headline growth suggested. For the quarter ended June 30, 2026 (Q1 FY27), consolidated revenue stood at INR 429 crore and EBITDA at INR 46 crore, translating into an EBITDA margin of 10.8% versus 9.5% in Q1 FY26. Reported revenue declined 14% year-on-year, which management attributed primarily to the deconsolidation of NODWIN Gaming from August 2025. Excluding this change, management stated comparable consolidated revenue grew by about 9% year-on-year.

The biggest headline, however, was not the quarter’s reported growth. It was a step-change in the company’s operating narrative. Nazara announced an acceleration of the previously announced Bluetile and BestPlay transaction. Under the amended structure, the company plans to acquire 100% ownership for a fixed all-cash consideration of USD 303 million. Alongside the deal update, the board approved the appointment of Raymond A. Stauffer as Chief Executive Officer effective September 1, 2026 (subject to regulatory approvals), with founder Nitish Mittersain continuing as Founder and Managing Director.

Gaming drove profitability, even as UA intensity rose

Nazara’s gaming segment delivered the clearest operating strength in Q1 FY27. Segment revenue increased 14% year-on-year to INR 275 crore. Segment EBITDA was INR 54 crore, implying a 19.5% EBITDA margin. Management highlighted that all gaming businesses remained EBITDA-positive.

Within gaming, performance was spread across multiple studios and IP-led businesses:

Fusebox, the developer of Love Island: The Game, reported revenue of INR 82 crore in Q1 FY27, up 12% year-on-year. The investor presentation noted that Love Island ranked number 1 in free apps and number 5 in top-grossing apps in the US. On the earnings call, management discussed two potential growth levers beyond Love Island: the scaling of Big Brother (already live) and development of a new title, The Traitors.

Kiddopia returned to growth. Revenue increased 19% year-on-year to INR 54 crore. The company attributed this to scaling user acquisition (UA) behind improving unit economics. It also disclosed that the 24-month LTV/CAC metric rose to 2.08 in Q1 FY27 from 1.77 in Q1 FY26. In the same period, iOS CAC was shown at 62.6 dollars. Management acknowledged that higher UA spend moderated near-term EBITDA.

Animal Jam reported revenue of INR 29 crore, up 11% year-on-year. The company linked this to a consistent content cadence and continued growth investment.

Curve Games, the PC and console publishing business, remained profitable while funding a new slate. Q1 FY27 revenue was INR 53 crore and EBITDA was INR 14 crore, implying a 27% EBITDA margin. In the earnings call, Curve’s leadership discussed releases planned over the next three quarters of FY27, starting with Sovereign Tower and Dragon Shelter in September, followed by other titles yet to be announced.

Financial summary (Q1 FY27)

Notes: The company stated that revenue declined due to NODWIN deconsolidation from August 2025, and comparable revenue grew about 9% year-on-year excluding NODWIN impact. Segment prior-year values for gaming were not fully disclosed in the provided tables.

Bluetile and BestPlay: A fast-moving growth engine, and now a full ownership deal

Nazara’s proposed acquisition of Bluetile and BestPlay is positioned as the largest scale and capability addition to the portfolio in recent periods. Under the revised structure, Nazara will acquire 100% ownership at closing for a fixed all-cash consideration of USD 303 million.

The payment schedule is defined as USD 89 million payable at first close, with the remaining USD 214 million payable in agreed tranches by April 1, 2027. On the earnings call, management disclosed additional color: around USD 75 million is due within 90 days and around USD 35 million is due in December 2026, with the remaining amount payable before April 1, 2027.

The company contrasted this with the original structure which envisaged roughly 50% at closing, earn-outs of up to USD 98.2 million, and put-call arrangements for the balance stake. The stated reasons for amending the structure were: elimination of future valuation uncertainty, full economics from day one, immediate operating integration, simplified governance, and greater strategic flexibility.

Bluetile and BestPlay reported INR 518 crore of revenue and INR 55 crore of EBITDA in Q1 FY27. Revenue grew 54% year-on-year (as per the presentation), while EBITDA was broadly flat. The driver was a significant increase in user acquisition spending, which rose to 85% of revenue from 78% in the prior-year quarter. The company highlighted that even with higher UA, revenue less UA spend rose from INR 73 crore to INR 80 crore.

Management framed this as a deliberate trade-off: reinvesting revenue gains into UA to expand the revenue baseline and user base, while keeping the option to flex EBITDA margins later depending on opportunities.

If the transaction closes as expected, Bluetile and BestPlay will be consolidated from Q2 FY27. The investor presentation included an illustrative arithmetic aggregation to show scale impact: Q1 FY27 Nazara revenue of INR 429 crore plus Bluetile and BestPlay revenue of INR 518 crore, resulting in an illustrative combined revenue of INR 947 crore. It also showed illustrative combined EBITDA of INR 101 crore. The company emphasized that this was not a forecast or pro forma statement.

Leadership restructure: A CEO transition built around execution and integration

Nazara announced that Raymond A. Stauffer, founder and former CEO of Bluetile and BestPlay, will be appointed CEO of Nazara Technologies effective September 1, 2026, subject to regulatory approvals. Nitish Mittersain will continue as Founder and Managing Director.

Management positioned the leadership transition as a shift to a more scaled operating model. In the earnings call, Nitish stated that his own focus would move toward strategy, vision, M&A, long-term relationships, and staying ahead of technology trends, similar to how the company operated between 2015 and 2022 when it had another CEO overseeing day-to-day execution.

The company also highlighted governance oversight for the amended acquisition structure. A newly constituted Investment Committee supervised the evaluation of the revised transaction terms and will oversee consideration payments and integration-related capital deployment, while the Board retains final approval authority.

Others segment: stabilisation and operating discipline, but profitability remains modest

Outside gaming, the “Others” segment reported revenue of INR 154 crore in Q1 FY27 and EBITDA of INR 4 crore (2.9% margin). Management noted that the segment’s reported decline is linked to NODWIN deconsolidation; on a comparable basis, it stated Others revenue was broadly flat.

Within Others, Datawrkz including Space and Time reported revenue of INR 126 crore and EBITDA of INR 3 crore. Management commentary emphasised operating discipline, margin resilience at Space and Time in a softer UK/EU demand environment, and a focus on scaling higher-margin products such as Vizibl.

Absolute Sports reported revenue of INR 28 crore and EBITDA of INR 1 crore. The company cited cost optimisation at Sportskeeda, with the full impact expected from Q2 onward, and pointed to improved performance at Pro Football Network, which it said delivered a 19% EBITDA margin versus near break-even in Q1 FY26.

NODWIN was discussed in the presentation and earnings call as an associate business progressing on youth media strategy and IPO readiness. The company described NODWIN’s Q1 as traditionally its slowest quarter and said losses were substantially lower due to corporate actions. In the earnings call, NODWIN’s founder referenced organic growth targeting of 30% plus for FY27 and continued IPO readiness work, while noting market conditions.

Profit and loss: EBITDA held, but below-the-line items drove a reported loss

Nazara’s consolidated EBITDA held at INR 46 crore, but the reported PAT from continuing operations was a loss of INR 82 crore. The company attributed this largely to the share of loss from associates of INR 62 crore and an impairment loss of INR 22 crore.

In the earnings call, management clarified that a significant portion of the impairment and associate losses related to write-offs associated with the remnant values of the Moonshine transaction, following recent judgments, rather than being driven primarily by NODWIN.

Takeaways from Q1 FY27

Nazara’s Q1 FY27 messaging was built around an operating platform thesis rather than a single-quarter earnings beat. The gaming portfolio delivered revenue growth and healthy segment margins, while management continued to reinvest in UA where unit economics met internal guardrails.

The amended Bluetile and BestPlay deal is the clearest catalyst for scale from Q2 FY27. It also brings near-term execution focus to funding the deferred consideration, integrating operating systems, and aligning group-wide capabilities in product, data, AI, UA, and monetisation.

The CEO transition reinforces the same priority: moving from a portfolio of entrepreneurial studios toward a more integrated operating model. If the consolidation proceeds as expected and integration is executed with discipline, Q2 FY27 onward could mark a distinct new baseline of scale for Nazara’s gaming-led model.