Nazara Technologies reported a return to profitability in the September quarter of FY2026–27, posting a consolidated net profit of ₹35.36 crore as revenue from operations climbed 52.6% year over year to a record ₹803.15 crore. The Indian gaming and digital entertainment company also recorded EBITDA of approximately ₹120 crore, up 93.5% from the corresponding quarter last year.
The results reflect an expanded business portfolio following the consolidation of Bluetile Games and BestPlay Systems, alongside growth across several existing gaming studios. However, the acquisition contribution is important when interpreting the headline numbers: the two businesses generated ₹329 crore in revenue during their first two months under Nazara, while the company’s existing gaming businesses recorded more moderate organic growth.
Key Takeaways
- Net profit: Nazara reported ₹35.36 crore in consolidated net profit, compared with a loss of approximately ₹33.9 crore a year earlier.
- Record revenue: Revenue from operations rose 52.6% year over year to ₹803.15 crore.
- Higher EBITDA: EBITDA increased 93.5% to ₹120 crore, with the margin expanding to 14.9%.
- Acquisition contribution: Bluetile Games and BestPlay Systems contributed ₹329 crore in revenue during their first two months of consolidation.
- Organic growth: Existing gaming businesses recorded 11% revenue growth and 17% EBITDA growth.
- Leadership changes: The results follow a management reshuffle that brought Raymond Stauffer into the CEO role and Arun Agrawal into the CFO position.
Nazara Technologies Q2 FY27 Results: Key Financial Figures
Nazara’s consolidated results for the quarter ended September 30, 2026, show a substantial improvement compared with the same period last year.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-over-year change |
|---|---|---|---|
| Revenue from operations | ₹803.15 crore | ₹526.46 crore | +52.6% |
| EBITDA | Approximately ₹120 crore | Approximately ₹62 crore | +93.5% |
| EBITDA margin | 14.9% | Approximately 11.8% | +3.1 percentage points |
| Net profit/(loss) | ₹35.36 crore | Approximately -₹33.93 crore | Turned profitable |
| Total income | ₹816.86 crore | ₹1,630.92 crore | -49.9% |
Source: Nazara’s reported results and financial coverage by Moneycontrol and Business Standard. Figures are rounded where indicated.
The decline in total income despite higher revenue from operations deserves attention. The comparison is affected by the previous year’s unusually high total income, which included items that did not recur in the current quarter. Investors should therefore distinguish operating revenue from total income when evaluating the company’s performance.
Why Did Nazara Return to Profit?
The shift from a loss to a profit reflects a combination of improved operating performance and a different comparison base.
In the year-ago quarter, Nazara’s results were affected by provisions related to its investments in real-money gaming companies following India’s August 2025 online gaming restrictions. Those charges weighed on reported profitability.
In Q2 FY27, the company reported net profit of ₹35.36 crore. EBITDA also rose significantly, indicating an improvement in operating earnings before interest, taxes, depreciation and amortization.
EBITDA is useful for assessing operating performance, but it is not the same as net profit or cash flow. Interest costs, depreciation, taxes, acquisition-related expenses and exceptional items can still affect the final earnings figure.
The 14.9% EBITDA margin, compared with approximately 11.8% a year earlier, suggests that operating earnings grew faster than revenue. Nevertheless, the contribution of acquired businesses means the improvement should not be attributed entirely to organic growth.
Bluetile and BestPlay Drive Revenue Expansion
The consolidation of Bluetile Games and BestPlay Systems was a major factor behind Nazara’s record quarterly revenue.
The two businesses contributed ₹329 crore in revenue during their first two months under the group and generated approximately ₹64 crore in EBITDA. Their reported EBITDA margin was around 19.4%.
| Acquisition-related metric | Q2 FY27 |
|---|---|
| Revenue contribution | ₹329 crore |
| EBITDA contribution | ₹64 crore |
| EBITDA margin | 19.4% |
| Share of consolidated revenue | Approximately 41% |
Source: Moneycontrol.
The acquisitions expand Nazara’s gaming portfolio and increase the scale of its operations. The company has also highlighted shared capabilities across marketing, data, product development and technology as a way to support the acquired studios and future releases.
The next question for investors is whether Nazara can sustain growth while integrating these businesses and managing the financial commitments associated with the acquisitions.
Gaming Business Remains the Main Revenue Driver
Nazara’s gaming segment generated ₹656 crore in revenue during Q2 FY27, more than double the ₹296 crore recorded in the year-ago quarter. It accounted for approximately 82% of consolidated revenue.
Mobile gaming revenue increased 167% to ₹550 crore, supported in part by the expanded portfolio. The gaming segment’s EBITDA reached approximately ₹141 crore, compared with ₹66 crore a year earlier.
The segment-level EBITDA figure exceeds consolidated EBITDA because the group’s other operations and corporate-level costs also affect the overall result. Segment earnings should not be directly equated with the company’s consolidated operating earnings.
Performance across other businesses
| Business | Q2 FY27 revenue | Year-over-year change |
|---|---|---|
| Gaming segment | ₹656 crore | +122% |
| Fusebox Games | ₹107 crore | -3.6% |
| Kiddopia | ₹57 crore | +21% |
| WildWorks | ₹35 crore | +45.8% |
| Curve Games | ₹77 crore | +27% |
| Offline gaming | ₹29 crore | Reported revenue |
| Adtech | ₹124 crore | Reported revenue |
| Absolute Sports | ₹23 crore | Reported revenue |
Source: Moneycontrol’s Q2 FY27 report. The figures represent reported business-level revenue and are rounded.
The results show mixed performance across the portfolio. Kiddopia and WildWorks recorded revenue growth, while Curve Games also expanded. Fusebox Games, known for story-driven titles, reported a modest decline in revenue as organic installs weakened, although its EBITDA increased.
These differences matter because Nazara’s future performance will depend on the health of individual studios as well as acquisitions. A broad portfolio can diversify revenue, but sustained growth still requires successful content, user acquisition and effective cost management.
Nazara’s Leadership Changes Add Another Dimension
The results arrived after significant changes in the company’s leadership.
Raymond Stauffer, the founder of Bluetile Games, became Nazara’s CEO in September 2026. Mithun Sacheti, co-founder of CaratLane and a Nazara co-promoter, joined as executive director in October, subject to shareholder approval. Arun Agrawal also joined as chief financial officer, replacing Rakesh Shah.
The new leadership structure comes as Nazara integrates its acquisitions and develops shared operating systems across its businesses.
Management has said that group-wide capabilities in marketing, data, product and technology are intended to help studios launch and scale games more efficiently. The results will need to demonstrate over subsequent quarters whether these systems can support profitable growth beyond the initial consolidation boost.
The Bigger Picture
Nazara’s Q2 FY27 results mark a significant recovery in reported profitability and a new quarterly revenue record. The company’s acquisition-led expansion has increased its scale, while stronger EBITDA and positive earnings provide a more encouraging picture than the loss reported a year earlier.
However, the 53% revenue increase should be interpreted alongside the contribution from Bluetile and BestPlay. Organic revenue growth across existing gaming businesses was 11%, highlighting the difference between reported expansion and underlying performance. Investors will be watching acquisition integration, margins, cash generation and the growth of established studios to assess whether the improved results can continue.
FAQs
1. What was Nazara Technologies’ net profit in Q2 FY27?
Nazara Technologies reported consolidated net profit of ₹35.36 crore for the quarter ended September 30, 2026, compared with a loss of approximately ₹33.93 crore in Q2 FY26.
2. How much did Nazara’s revenue grow?
Revenue from operations increased 52.6% year over year to ₹803.15 crore, a record quarterly figure for the company.
3. Why did Nazara’s revenue increase so sharply?
The consolidation of Bluetile Games and BestPlay Systems was a major driver. The acquired businesses contributed ₹329 crore in revenue during their first two months under Nazara, while existing gaming businesses recorded 11% organic revenue growth.
4. What was Nazara’s EBITDA in Q2 FY27?
Nazara reported EBITDA of approximately ₹120 crore, up 93.5% year over year. Its EBITDA margin increased to 14.9%.
5. What should investors watch after the results?
Key factors include the performance of Bluetile and BestPlay, organic growth across existing studios, EBITDA margins, acquisition integration and cash generation. The company’s leadership changes are also relevant as management works to integrate the expanded portfolio.
Looking Ahead
Nazara’s next few quarters will help clarify whether its expanded gaming portfolio can translate into sustained revenue growth and profitability. Investors will need to separate acquisition-driven growth from organic performance while monitoring the contribution of established titles and newer releases.
The company is entering this period with record quarterly revenue and a return to profit, but maintaining that progress will depend on successful integration, disciplined spending and consistent performance across its businesses. Future results will show whether the current momentum can continue after the initial contribution from the acquisitions.
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