Nazara Technologies reported a strong Q2 FY27, turning to a Rs 35 crore profit from a year-ago loss. Driven by a 122% surge in gaming revenue and the integration of Bluetile and BestPlay, the company achieved record quarterly revenue of Rs 803 crore. While operational efficiency improves, investors are watching the company's plan to fund its $303 million acquisition deal through debt and share issuance.
Nazara Technologies Reports Rs 803 Crore Revenue; Returns to Profitability
Revenue grew 53% year-on-year to Rs 803 crore in Q2 FY27; EBITDA climbed 93% to Rs 120 crore.
Reader Takeaway: Strong gaming segment growth and AI-driven efficiency boost profits, though acquisition-related debt and non-core divestments bear watching.
What just happened
Nazara Technologies turned around its financial performance in the second quarter of fiscal 2027. The company posted a Profit After Tax (PAT) of Rs 35 crore, a significant improvement from the Rs 34 crore loss recorded in the same quarter last year. Revenue reached an all-time high, supported by the integration of its newest gaming acquisitions.
Why this matters
The gaming segment is now the clear growth engine for the firm, contributing 82% of consolidated revenue. The addition of Bluetile and BestPlay since August 1, 2026, provided a massive boost, with these entities contributing Rs 329 crore in just two months. This strategic shift has successfully driven EBITDA margins up by 311 basis points to 14.9%.
The backstory
Nazara has spent the last year refining its leadership and focusing on "qualitative growth." The company recently appointed a new executive team and is now leveraging Centers of Excellence to integrate AI into its ad creative production and user acquisition workflows, aiming to shorten development cycles.
Risks to watch
Investors should closely track the company's acquisition funding strategy. With a total deal value of $303 million for its latest acquisitions, the company is managing a significant balance of roughly $141 million, which it plans to partially cover through debt. Additionally, the divestment process for non-core assets like AdTech and Absolute Sports will be critical for de-leveraging the balance sheet.
Context metrics
In H1 FY27, Nazara reported revenue of Rs 1,232 crore, representing a 20% growth. EBITDA for the same half-year period grew 52% to Rs 166 crore. While the headline numbers look strong due to M&A, the company's core legacy business delivered organic revenue growth of 11%.
What to track next
Watch for updates on the fundraising progress for the remaining acquisition payments and any official announcements regarding the sale of non-core business units.