Nazara Technologies Ltd's Q2 FY27 numbers came in strong. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 26, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 803.15 Cr (+52.56% YoY) |
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| PAT (Q2) | Rs. 35.36 Cr |
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| EBITDA margin | 14.89% (+311 bps YoY) |
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| EPS (Q2) | Rs. 0.95 |
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| Market cap | Rs. 16,381.84 Cr |
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| CMP | Rs. 400.25 |
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Quarter Snapshot
Q2 FY27 delivered Rs.803.15 Cr revenue (+52.56% YoY) with EBITDA of Rs.119.57 Cr (+92.85% YoY) at a 14.89% margin, and PAT swung to Rs.35.36 Cr from losses, driven by the first-time consolidation of Bluetile/BestPlay (USD 303 Mn acquisition). Key watch items are weak cash conversion (CFO/EBITDA 25.6%), the USD 214 Mn deferred-consideration payment due April 2027 against Rs.512.36 Cr near-cash, and the ad tech segment's continued decline. Management's pro-forma EBITDA doubling target for FY27 requires H2 delivery 43.67% above the Q2 exit run-rate, making it a stretch.
Key Investment Insights
Key Positives
- Revenue grew 52.56% YoY to Rs.803.15 Cr (+87.31% QoQ), the first quarter consolidating Bluetile/BestPlay
- EBITDA of Rs.119.57 Cr grew 92.85% YoY with margin at 14.89%, up 311 bps YoY and 405 bps QoQ
- PAT swung to Rs.35.36 Cr (EPS Rs.0.95) from losses of Rs.33.93 Cr YoY and Rs.82.47 Cr QoQ; normalized PAT of Rs.45.44 Cr grew ~55% YoY
- Gaming segment revenue grew 121.84% YoY to Rs.656.38 Cr with segment result of Rs.58.83 Cr (8.96% margin vs 2.82% in Q1)
- eSports segment loss narrowed YoY to Rs.2.59 Cr from Rs.7.61 Cr
- Finance costs fell 43.87% YoY to Rs.3.80 Cr; employee costs grew only 9.37% YoY
- Net worth rose 10.31% to Rs.3,831.56 Cr; Rs.730.78 Cr preferential allotment at Rs.306 approved post-quarter
Risk Factors
- Ad tech revenue fell 13.78% YoY and 1.67% QoQ with the segment loss widening to Rs.4.82 Cr despite guided cost actions from Q2
- H1 CFO of Rs.42.56 Cr was only 25.6% of EBITDA; FCF was negative at Rs.(34.10) Cr
- USD 214 Mn Bluetile deferred consideration (Rs.2,312.59 Cr current liability) due by 1 April 2027 against near-cash of Rs.512.36 Cr
- Advertising spend more than tripled YoY (+258.18%) to 51.93% of revenue, reflecting Bluetile's UA-intensive model
- FY27 pro-forma EBITDA doubling target (≥ ~Rs.509.62 Cr) requires H2 of Rs.343.57 Cr, +43.67% above the Q2 exit run-rate
- Effective tax rate of −37.16% from deferred-tax credits flattered PAT and is unlikely to persist