Nazara Technolo. Q2 FY27 Results (NSE: NAZARA)
Signal: Loss reversed
The read
The key inflection is a return to consolidated profit of ₹3,536 lakh after the ₹8,247 lakh Q1 loss, led by Gaming revenue growth of +121.8% YoY and a 4.5% operating margin; however, eSports and ad-tech remained loss-making and ₹2,346 lakh of associate losses continue to dilute the operating recovery.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹803.15 Cr | +52.6% | +87.4% |
| Net profit | ₹35.36 Cr | N/M (loss to profit) | |
| EPS | ₹0.95 | N/M (loss to profit) | |
| EBIT margin | 4.5% |
P&L walk
Revenue increased to ₹80,315 lakh, +52.6% YoY and +87.4% QoQ, with Gaming producing ₹5,883 lakh of segment profit; consolidated operating margin recovered to 4.5%, but ₹2,346 lakh of associate losses still constrained PBT and PAT recovered to ₹3,536 lakh from a year-ago loss.
Segments
Gaming drove the consolidated recovery with revenue of ₹65,638 lakh, +121.8% YoY, and segment profit of ₹5,883 lakh, while eSports remained loss-making at ₹(259) lakh and ad-tech posted ₹(482) lakh of loss.
Key positives
- Gaming revenue reached ₹65,638 lakh, +121.8% YoY and +138.7% QoQ, making it the clear growth engine.
- Gaming segment profit rose to ₹5,883 lakh, +262.5% YoY, while total segment result reached ₹5,142 lakh versus ₹764 lakh a year ago.
- Consolidated PAT turned positive at ₹3,536 lakh from ₹(3,393) lakh YoY and ₹(8,247) lakh QoQ.
- Operating margin recovered to 4.5%, up 35.5pp YoY and 10.7pp QoQ.
Key concerns
- eSports revenue fell 73.9% YoY to ₹2,279 lakh and remained loss-making at ₹(259) lakh.
- Ad-tech revenue declined 13.8% YoY to ₹12,398 lakh and its segment loss widened to ₹(482) lakh from ₹(98) lakh a year ago.
- Associate losses of ₹2,346 lakh continued to reduce pre-tax earnings despite the Gaming recovery.
- Segment assets increased to ₹632,694 lakh from ₹301,748 lakh YoY while depreciation declined to ₹668 lakh from ₹2,181 lakh, warranting monitoring of asset utilisation and depreciation recognition.
Research and educational content only. Not investment advice.