Nazara Technologies Q2 FY27 results: net profit ₹35.36 crore vs ₹33.93 crore loss, revenue up 52.6%

How did Nazara Technologies perform in Q2 FY27?

Nazara Technologies reported consolidated revenue of ₹803.15 crore for Q2 FY27, up 52.6% from ₹526.46 crore in Q2 FY26 and 87.3% from ₹428.77 crore in Q1 FY27. EBITDA was ₹112.89 crore, compared with ₹59.80 crore a year earlier and ₹24.67 crore in the previous quarter. The EBITDA margin rose to 14.1% from 11.4% and 5.8%, respectively.

The company reported a net profit of ₹35.36 crore in Q2 FY27 against a net loss of ₹33.93 crore in Q2 FY26 and ₹82.47 crore in Q1 FY27. Basic EPS was ₹0.95, compared with a loss of ₹0.85 and a loss of ₹2.16 per share, respectively. Profit attributable to owners was ₹36.28 crore, and profit before tax was ₹49.24 crore.

On a standalone basis, revenue was ₹18.73 crore and profit after tax was ₹0.37 crore, compared with a standalone profit before tax of ₹966.95 crore in the year-ago quarter.

What changed in Nazara Technologies' costs and profit?

Total expenses rose to ₹767.62 crore from ₹534.25 crore in Q2 FY26, an increase of ₹233.37 crore or 43.7%. Employee cost increased by ₹7.30 crore to ₹85.21 crore, finance costs fell by ₹2.97 crore to ₹3.80 crore, depreciation increased by ₹12.74 crore to ₹73.56 crore and other expenses rose by ₹222.19 crore to ₹601.33 crore.

Other income fell by ₹1,091 crore to ₹13.71 crore from ₹1,104 crore in Q2 FY26, while there was no exceptional item in Q2 FY27 against an exceptional charge of ₹914.70 crore in the year-ago quarter. The tax line was ₹9.58 crore, down by ₹1.80 crore from ₹7.78 crore.

Against Q1 FY27, total expenses increased by ₹312.25 crore to ₹767.62 crore, including a ₹281.85 crore rise in other expenses and a ₹25.85 crore increase in depreciation. Other income rose by ₹4.93 crore to ₹13.71 crore, and there was no exceptional item in either quarter.

How did the first half of FY27 go?

For H1 FY27, Nazara Technologies reported revenue of ₹1,231.92 crore, up 20.2% from ₹1,025.23 crore in H1 FY26. Total income fell 43.2% to ₹1,254.41 crore from ₹2,206.79 crore, while profit before tax declined 86.7% to ₹31.42 crore from ₹236.84 crore.

The company reported a net loss of ₹47.11 crore for H1 FY27, against a net profit of ₹17.41 crore in H1 FY26. Basic EPS was a loss of ₹1.16, compared with earnings of ₹1.08 per share in the year-ago period.

What do the balance sheet and cash flow show?

Total assets rose to ₹7,295.14 crore as on 30 September 2026 from ₹4,371.18 crore as on 31 March 2026, while total equity increased to ₹3,905.63 crore from ₹3,551.7 crore. Borrowings fell to ₹86.47 crore from ₹111.51 crore, and cash rose to ₹398.79 crore from ₹174.64 crore.

Trade receivables increased to ₹511.58 crore from ₹376.22 crore, while trade payables rose to ₹513.48 crore from ₹376.37 crore. Inventories fell to ₹2.85 crore from ₹3.43 crore. H1 operating cash flow was ₹42.56 crore, against ₹38.35 crore in H1 FY26, while investing cash flow was an outflow of ₹167.95 crore against ₹477.62 crore.

Financing cash flow was an inflow of ₹351.05 crore for H1 FY27, compared with ₹353.57 crore in H1 FY26. Capital expenditure was ₹76.66 crore, against ₹55.13 crore in the year-ago period.

How has Nazara Technologies done over the last 8 quarters?

Revenue reached a period high of ₹803.15 crore in Q2 FY27 after falling to ₹397.78 crore in Q4 FY26 and recording ₹428.77 crore in Q1 FY27. The latest quarter therefore represented a marked recovery from the preceding low, although the figures do not provide a streak.

Net profit peaked at ₹55.7 crore in Q4 FY26 and bottomed at a loss of ₹82.47 crore in Q1 FY27. It recovered to a profit of ₹35.36 crore in Q2 FY27. EBITDA margin reached its period high of 18.6% in Q4 FY26, fell to 5.8% in Q1 FY27 and recovered to 14.1% in Q2 FY27.

Which businesses drove the quarter?

Gaming reported Q2 FY27 revenue of ₹656.38 crore and EBIT of ₹58.83 crore, with an EBIT margin of 9.0%. The filing stated that gaming revenue grew 122% year-on-year and gaming EBITDA grew 114% to ₹141 crore, with a margin of 21.5%; prior-period segment revenue and EBIT were not provided.

eSports reported revenue of ₹22.79 crore and an EBIT loss of ₹2.59 crore, while Ad tech reported revenue of ₹123.98 crore and an EBIT loss of ₹4.82 crore. The supplied segment data did not include year-ago revenue, EBIT or growth rates for either business.

What else did the company announce?

The board approved Nazara Technologies’ unaudited consolidated and standalone financial results for the quarter and half-year ended 30 September 2026, along with the statutory auditors’ limited review reports. It also approved a revised policy for determining material events and information and updated the key managerial personnel authorised to make disclosures, effective 26 October 2026.

The company filed an investor presentation with the results, while Bluetile and BestPlay were consolidated from 1 August 2026. The presentation said Bluetile and BestPlay had $303 million consideration, of which $85.5 million was paid and about $100 million more was planned as debt. The same-day filings did not announce a dividend or a new fundraising exercise.

What did Nazara Technologies' management say?

CEO Raymond Stauffer said the one-year priority was to achieve “an AI-operated company group and set of studios that could feed into and from that central platform.” Management also said it was not giving exact guidance and instead expected consistent year-on-year qualitative growth through studios and the central group, using both organic and inorganic growth. Bluetile and BestPlay revenue was expected to grow year-on-year over the next few years, without a numerical target.

Management expected SMAAASH 2.0 to launch in the next few months after a slight delay pending regulatory approvals, and said five additional Funky Monkeys stores were planned in FY27 after 10 were opened in the prior 12 months. Datawrkz revenue was expected to dip temporarily in H2 FY27 as an anchor client restructured and paused advertising spending.

Management identified mobile seasonality and marketing allocation as risks for Bluetile and BestPlay, said Fusebox revenue declined 4% year-on-year, and noted that WildWorks had shelved its Roblox title while iterating on weak Go Slinky Go! retention. It also said NODWIN reported an operating loss and impairment on Turkish associate Publishme. No analyst concerns were listed in the supplied call material.

How did Nazara Technologies shares react?

The filing appeared after market hours from a pre-results close of ₹402.40. The stock was down 0.7% after five minutes, 0.9% after 15 minutes and 1.7% after 30 minutes. It closed the first tradable session down 0.1%, and by the next day’s close it was down 0.6% from the pre-results close; by five sessions, it was down 0.9%.

The Entertainment industry median rose 1.6% on the reaction day, 1.2% by the next close and 1.0% by five sessions. Nazara Technologies therefore lagged the industry median by 1.7 percentage points on the reaction day, 1.9 percentage points by the next close and 1.9 percentage points over five sessions. Earlier reaction-day moves included gains of 3.0% and 1.2% on 3 August 2026 and 12 May 2026.