Nazara Technolo. Q1 FY27 Results (NSE: NAZARA)
Signal: Slipped to loss
The read
Consolidated net loss of ₹79.92 Cr, a steep swing from profit of ₹36.42 Cr a year ago, driven by ₹62.41 Cr share of associate losses (primarily Nodwin Gaming deconsolidation/impairment) and ₹21.81 Cr impairment; core gaming segment PBIT of ₹7.76 Cr was insufficient to cover corporate costs and associate losses.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹428.77 Cr | -14.0% | 7.8% |
| EBIT | ₹-14.26 Cr | -123.8% | |
| Net profit | ₹-79.92 Cr | -319.5% | |
| EPS | ₹-2.16 | -243.0% | |
| EBIT margin | 7.8% |
P&L walk
Revenue down 14% YoY as eSports collapsed; EBITDA margin of 7.8% insufficient to cover massive associate losses and impairment; net loss of ₹79.92 Cr.
Segments
Gaming segment remained profitable with ₹7.76 Cr PBIT, but was offset by losses in eSports (-₹0.46 Cr) and Ad tech (-₹1.79 Cr), with massive associate losses of ₹62.41 Cr driving the consolidated net loss.
Key positives
- Gaming segment revenue grew 14% YoY to ₹274.98 Cr, showing resilience.
- Ad tech revenue up 19% YoY to ₹126.08 Cr, driven by new client wins.
- Cash and cash equivalents likely adequate (segment assets ₹4,377 Cr); no near-term liquidity stress.
Key concerns
- eSports revenue collapsed 82% YoY to ₹27.79 Cr due to restructuring and client churn.
- Associate losses spiked to ₹62.41 Cr from ₹24.25 Cr, with an additional impairment of ₹21.81 Cr.
- Consolidated net loss and negative EPS, with no near-term visibility on turnaround in eSports or associates.
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