Nazara Technologies Ltd Q2 FY27 Earnings Call: Revenue Hits Record Rs. 803 Cr, EBITDA Surges 93%

Nazara Technologies Ltd held its Q2 FY27 earnings call on October 26, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Marks New CEO's First Call

• Revenue at an all-time high of Rs.803 Cr, up 53% YoY — EBITDA grew 93% to Rs.120 Cr with margin expanding 311 bps to 14.9%; PAT from continuing operations was Rs.35 Cr versus a Rs.34 Cr loss in Q2 FY26.
• H1 FY27 revenue grew 20% to Rs.1,232 Cr — EBITDA grew 52% to Rs.166 Cr.
• First quarter consolidating BlueTile and BestPlay (from 1 Aug, Q2 FY27) — the two acquisitions generated Rs.329 Cr revenue in their first two months, up 49%, with EBITDA up 64% to Rs.64 Cr, driven by rapid product iterations, new markets, AI-automated user acquisition and cross-promotion.
• Gaming contributed 82% of consolidated revenue and effectively all EBITDA before corporate costs — gaming revenue grew 122% to Rs.656 Cr at a 21.5% EBITDA margin; mobile revenue grew 167% to Rs.550 Cr.
• Share of loss from associates was Rs.23 Cr in Q2 FY27 — driven by Nodwin's EBITDA loss plus a one-time impairment of a Turkish portfolio company (Padrishmi); CFO Arun Agarwal said numbers are flattish ex-impairment.
• Leadership transition "more or less complete" as of Q2 FY27 — Raymond Stoffer led his first earnings call as CEO, Arun Agarwal (ex-global CFO, Nest Digital Engineering) joined as CFO, and Mithun Sacheti (CaratLane founder) moved from non-executive director to Executive Director as part of the promoter group, with a mandate spanning strategic conversations and governance focus.

Organic Studios Deliver; Fusebox and AdTech Lag

• Existing gaming studios grew organically 11% in revenue and 17% in EBITDA — WildWorks revenue up 41% on Animal Jam content (Kitsune launch drove the highest daily revenues in the game's lifetime); Kidopi revenue up 21%; Curve revenue up ~27% with EBITDA up 61%.
• Curve (PC/console) revenue grew 27% YoY to Rs.77 Cr — EBITDA grew 61% to Rs.30 Cr with margin expanding from 30.8% to 38.9%; Sovereign Tower was received overwhelmingly positively on Steam, Wobbly Life's mobile debut hit #3 on both App Store and Play Store genre charts, and Human Fall Flat crossed 60 million players.
• Fusebox revenue fell 4% YoY — on lower organic installs as downloads of similar games declined globally; EBITDA still grew 7%, aided by proprietary web shops (lower fees than app stores) and cost optimization; Love Island was the #1 free role-playing game on the US App Store in July.
• Kidopia revenue grew 21% YoY on 5% subscriber and 8% ARPU growth (to 7.94) — EBITDA declined as Kidopia stepped up user acquisition spend to accelerate subscriber growth while keeping unit economics within its target threshold.
• Offline gaming EBITDA grew 29% YoY to Rs.8 Cr on revenue of Rs.29 Cr — margin rose from 20.3% to 26.2% on record birthday revenues; Funky Monkey opened 10 new stores over the last 12 months, with 5 more to open in FY27.
• AdTech (DataWorks and Space & Time) posted revenue of Rs.124 Cr and EBITDA of Rs.0.8 Cr — management expects a temporary dip in H2 FY27 as an anchor client restructures and pauses ad spend.
• Absolute Sports revenue was Rs.23 Cr with adjusted EBITDA of Rs.1.7 Cr — excluding pickleball franchisee costs and one-time expenses; Pro Football Network revenue grew 20% YoY with a 17% EBITDA margin versus negative 8-18% in Q2 FY26; Sportskeeda operating costs were down 13% QoQ.

$303 Mn Consideration, Tranche Payments Through Q4 FY27

• Total consideration of $303 Mn for the "Blue Light and Display" acquisition — of which $85.5 Mn has already been paid, per CFO Arun Agarwal.
• Balance payable in three tranches — one in October (Q3 FY 2026-2027) and the other two between December and March (Q3–Q4 FY 2026-2027).
• The October tranche of $77 Mn is already funded — through a share issuance invested in by CEO Raymond Stoffer and team, informed to the exchange.
• Management plans to raise approximately $100 Mn as debt in FY 2026-2027 — for the remaining tranches, in conversations with multiple bankers described as being at "the very closest stage"; the small residual will be funded through internal accruals.
• BlueTile's leadership team holds a 5.8% stake in Nazara — disclosed alongside the first-quarter consolidation of BlueTile and BestPlay.

BlueTile Capabilities Being Scaled Group-Wide

• BlueTile's core capabilities now operate as group centers of excellence across marketing, data, products and technology — with AI embedded in all four; the marketing COE produced over 290 ad creatives for three studios in a single month, with output expected to increase exponentially as tooling is set up at each studio.
• Target of an "AI operated company group" within 1 year (by FY 2027-2028) — with every studio feeding into and drawing from a central, ever-evolving platform; levers are aligning operations, setting a deliverable bar, and introducing AI in each studio through the COEs.
• Efficiency levers cited by CEO Raymond Stoffer — centralized marketing across studios to reduce idle FTE/contractor capacity and spike bottlenecks; a semantic data layer consumed by AI with a marketplace for every studio, enabling growth without proportional FTE increase; new AI frameworks expected to cut game development cycles by "very high percentages" (no quantified target given).
• Platform-lens reporting adopted — gaming businesses will be reported in a consolidated way to enable flexible capital allocation toward units showing growth and good ROAS in a given quarter.
• Nodwin, an associate, is no longer included in segment updates — per Anupriya Das; H1 FY 2026-2027 revenue and EBITDA were almost flat because two IPs (iPopstars and All That Matters) moved from Q2 to Q3 FY 2026-2027, with growth expected in coming quarters of FY 2026-2027; Comic Con debuted in Vizag with good traction. Nodwin is pursuing a pre-IPO fundraise and preparing for an IPO, with no timeline committed.

Gaming-First Core; Non-Core Monetization Opportunistic

• Gaming reaffirmed as the core across 3 pillars — mobile, PC/console and offline — within a total addressable market of over $200 billion; CEO Raymond Stoffer said non-core group companies are being set up for success and the company is "open for a strategic exit at some point" (no timeline specified), with the stated goal of becoming a global mobile gaming platform.
• All non-core assets are being explored in the market, per CFO Arun Agarwal — the company will double down on gaming and deconsolidate and monetize non-gaming assets over time; no deal stages or active conversations disclosed yet.
• Monetization is opportunistic, not a distress sale, per Anupriya Das — the non-core businesses (incl. Nordwind, Absolute, ATEC assets) are profitable in their own right, with no hard internal timeline committed.
• Both India and international markets will be pursued over the next 3-5 years — with "a little bit more of a heavier investment" in the US and Europe in the short-to-mid term while maintaining a stronghold in India; the CEO noted India still has to develop the mobile unit economics other parts of the world have already developed.
• Mid-to-long-term India thesis — as India develops those unit economics and adds more digitally active users, the CEO said India will offer a huge, increasingly acquisitive addressable market where Nazara will have a unique advantage versus every other gaming company.
• M&A posture: near-term focus on integrating the Luta acquisition and the new COE transition — the company is not aggressively pursuing inorganic deals as of now but will re-evaluate inorganic growth in the mid-to-long term; any target must fit the gaming thesis and leverage or add capabilities to the Nazara central platform.

No Numeric Guidance; Qualitative Growth Commitment Only

• CEO declined to provide quantitative forward guidance — when asked whether the target is 25% or 30% growth, Stoffer declined to give exact guidance, noting he had just entered the role, and said only that he expects consistent growth, both organic and inorganic, from both the studios and the central group.
• 5-year target: grow "qualitatively, consistently" through the next 5 years (through ~FY 2031-2032) — organically via each studio delivering games and growth, and inorganically at the central level through further M&A.
• BlueTile/BestPlay margins improved from 10.5% in Q1 FY27 to ~19.5% in August-September of Q2 FY27 — while UA spend fell from 85% to ~75% of revenue; the CEO attributed the shift to seasonality (August being the weakest month) and stressed margins should be judged on a full-year basis; management declined specific revenue growth guidance, committing only to year-on-year growth (period unspecified).
• Fusebox pipeline: 4 IPs with ~7 seasons planned for calendar 2026 — 4 already delivered, 2 live now (Big Brother and a new Traitors season) plus Love Island; Traitors early cohorts are monetizing at 3x of Love Island (per Anupriya Das, correcting the CEO's initial 2x remark) with strong retention; temporary revenue dips flagged depending on content seasonality.
• WildWorks new bets: mixed outcomes — the Animal Jam Roblox title has been shelved after traction missed the internal bar; Go Slinky Go soft-launch retention was not strong enough, with iterations through October and November and scaling only once KPIs clear green-light gates; a Coach Linkigo launch likewise awaits KPI threshold clearance.
• Smash 2.0 design and rebranding complete — launch slightly delayed pending regulatory approvals, now expected in the next few months of FY 2026-2027.
• Analyst Priyam Shah (Trinetra Asset Managers) cited a run rate of roughly Rs.900 Cr per quarter once BlueTile is consolidated for a full period (period unspecified) — noting nearly all Nazara growth over the past two years came via acquisitions while the organic base absorbed the PokerBaazi write-off and the Nordwind deconsolidation; management responded that Q2 FY27 was the first quarter in some time with organic growth and it wants to double down on qualitative growth via platform synergies and AI capabilities.