Nazara Technologies Reports Turnaround in Q2 FY27 Results

Revenue for the quarter stood at Rs 803.15 crore against Rs 35.36 crore net profit.

Reader Takeaway: Revenue growth and a return to profitability highlight operations, while significant GST-related litigation across associates remains a risk.

What just happened

Nazara Technologies reported a major financial turnaround for the quarter ended September 30, 2026. The company posted a consolidated net profit of Rs 35.36 crore, a sharp recovery from the Rs 33.93 crore loss recorded in the same quarter last year. Consolidated revenue from operations climbed to Rs 803.15 crore, up from Rs 526.46 crore in the previous year. The company also executed several major corporate actions, including the 100% acquisition of Bluetile Games and Bestplay Systems for USD 303 million.

Why this matters

The return to profitability signals that Nazara’s scaling efforts and gaming portfolio expansion are beginning to reflect on the bottom line. Shareholders will note the increase in authorized share capital from Rs 80 crore to Rs 90 crore, following a series of significant share allotments related to warrant conversions and a preferential issue of 2.38 crore shares at Rs 306 each.

Legal and Regulatory Update

Nazara disclosed significant GST-related litigation involving its associates. Halaplay Technologies received a show-cause notice for Rs 274.21 crore, while other associates collectively faced notices totaling Rs 10,369.06 crore. Nazara clarified that it has fully impaired its investments in these entities and does not expect further financial impact on the Group, noting that legal challenges are currently being managed at the Supreme Court level for specific entities.

What to track next

Investors should monitor the integration of the newly acquired Spanish entities, Bluetile and Bestplay, and any further developments in the Supreme Court regarding the GST liabilities of associate firms.