Nazara Technologies Limited Earnings Summary — Q1 FY2027
Nazara Technologies Posts Q1 Loss Amidst Heavy M&A Activity and Real Money Gaming Impairments
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 7.8% sequentially in Q1 FY2027.
- Revenue of ₹429 Cr is 14.0% lower year-on-year.
- Revenue has compounded at 23.6% annualised over the last 10 quarters.
- Net profit of ₹-80 Cr is 216.9% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 165.2% annualised across the period.
- Operating margin stands at -8.8% in Q1 FY2027.
- Operating margin compressed by 1345 bps year-on-year.
- Over the last two years operating margin has contracted by 1849 bps.
- PBT margin is -18.7%.
- Expenses grew -1.9% against revenue growth of -14.0%.
- Operating profit of ₹-38 Cr is 262.7% lower year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 31/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 429 | 398 | 406 | 526 | 499 | 520 | 535 | 319 | 250 | 266 |
| Expenses | Improving | 467 | 354 | 338 | 690 | 476 | 491 | 498 | 295 | 226 | 265 |
| Operating Profit | Volatile | -38 | 44 | 68 | -164 | 23 | 29 | 37 | 24 | 24 | 2 |
| Operating Margin | Volatile | -8.8% | 10.9% | 16.7% | -31.1% | 4.7% | 5.6% | 6.9% | 7.5% | 9.7% | 0.6% |
| Other Income | Volatile | 9 | 51 | 10 | 190 | 92 | 9 | 22 | 23 | 26 | 21 |
| Interest | Volatile | 4 | 6 | 4 | 7 | 5 | 5 | 3 | 2 | 1 | 1 |
| Depreciation | Improving | 48 | 46 | 60 | 61 | 65 | 37 | 31 | 26 | 15 | 22 |
| Profit Before Tax | Volatile | -80 | 42 | 14 | -42 | 46 | -4 | 25 | 20 | 34 | 0 |
| Tax | Volatile | 2 | -13 | 5 | -8 | -6 | -8 | 12 | 4 | 10 | -0 |
| Net Profit | Volatile | -80 | 47 | 10 | -29 | 68 | 6 | 31 | 22 | 23 | 9 |
| Net Margin | Volatile | -18.6% | 11.8% | 2.4% | -5.6% | 13.7% | 1.2% | 5.7% | 6.9% | 9.1% | 3.2% |
Key Takeaways
- Revenue fell 14% YoY to ₹428.8 Cr, primarily due to the deconsolidation of the eSports subsidiary Nodwin, which significantly impacted the segmental mix.
- The company reported a substantial consolidated net loss of ₹79.9 Cr for the quarter, largely driven by a ₹62.4 Cr share of loss from associates.
- Further impairment charges of ₹21.8 Cr were taken against investments in Moonshine Technology (Real Money Gaming) following unfavorable Supreme Court GST rulings.
- Major leadership transition announced: Nitish Mittersain to resign as CEO effective September 1, 2026, to be replaced by Raymond Albaladejo Stauffer.
- The Board approved an additional investment of up to ₹9.9 Cr in Funky Monkeys Play Center, increasing the company's stake to approximately 68.1%.
- Company received ₹17.55 Cr from Founders Collective Fund following the conversion of 9,00,000 warrants into equity shares.
- The Target companies acquisition (Bluetile and Bestplay) was restructured to an all-cash deal, releasing the parent company from stock-based consideration obligations.
Management Guidance
Management is shifting focus toward a global gaming IP house strategy, utilizing its significant cash reserves for acquisitions while transitioning leadership to a professional CEO to handle the next phase of scale.
Sentiment Shift
Deteriorating
The reporting of a heavy loss and continued impairments in the Real Money Gaming sector, combined with a decline in YoY revenue and a significant CEO transition, marks a period of heightened uncertainty.
Outlook
The company remains in a high-transition phase with significant exposure to regulatory risks in India's gaming sector (GST). Growth will depend on the successful integration of recent UK and Ad-tech acquisitions and the scaling of the 'Gaming' segment to offset eSports deconsolidation.
From the Annual Report (Key Quotes)
“The Group has reassessed the recoverable amount... the balance investment in the said associate amounting to ₹2,181 lakhs are further impaired during the quarter.”
“Mr. Mittersain... will continue to focus on his role as Managing Director, which shall include the Company's long-term strategy, portfolio direction, and strategic partnerships.”
“The Hon'ble Supreme Court has on 27 May 2026 upheld a 28% GST on the total face value of bets or deposits placed by players.”
Official Quarterly Documents
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This summary is AI-generated from Nazara Technologies Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.