NAZARA - Nazara Technologies Limited Share Price

In the earnings call held on May 13, 2026, management provided an optimistic outlook for Nazara Technologies, highlighting significant growth and strategic developments. For FY '26, the company reported a revenue of INR 1,829 crores, an increase of 13% year-on-year, and EBITDA of INR 255 crores, up 66% year-on-year, with an impressive EBITDA margin of 13.9%. In Q4 FY '26 alone, revenue was INR 398 crores with an EBITDA of INR 78 crores, translating to an EBITDA margin of 19.5%.

Forward-looking statements emphasized the transformation of Nazara's business model, shifting focus significantly toward gaming, where contributions to EBITDA surged from 56% in FY '25 to 90% in FY '26. The management underscored that their operating cash flow jumped 81% year-on-year, reaching INR 213 crores.

Looking ahead to FY '27, management expressed confidence in further accelerating growth, supported by the recent acquisitions of Bluetile and BestPlay, which are expected to bolster casual gaming capabilities. They noted that the EBITDA profile is likely to double when combined with Bluetile's projected numbers of INR 1,460 crores in revenue and INR 254 crores in EBITDA for CY '25.

Management highlighted key drivers for future growth, including the enhancements from their Centers of Excellence model, which focuses on user acquisition, data analytics, and artificial intelligence. They indicated expectations for further improvements in operating leverage and margins in the coming year, while also preparing for strategic divestments of non-core businesses to realign resources towards higher-margin gaming operations. Overall, they anticipate continuous revenue and EBITDA growth through FY '27, with an emphasis on scalability and enhanced profitability from newer IPs and market expansion.

1. Question by Jinesh Joshi: "The other income bit, which was at about INR 51 crores in this quarter and apparently appears to be materially higher. Was there any one-off in this quarter?"

   Answer by Nitish Mittersain: The other income is predominantly driven by a one-time gain of INR 31 crores on our investment in Rusk Media, revised upwards based on their new investment round. The rest comprised currency gains and mutual fund gains.

2. Question by Jinesh Joshi: "If I look at our share of losses from associates, I think in this quarter that figure was INR 31 crores. Is it safe to assume that the overall losses for NODWIN in the quarter were at about INR 65-66 crores?"

   Answer by Nitish Mittersain: Yes, the losses came from some outstanding issues, including a write-off of INR 50 crores in goodwill for NODWIN related to an acquisition that underperformed. Operationally, NODWIN has been more profitable this year.

3. Question by Jinesh Joshi: "What is the timeline for the launch of new IPs like Dragon Shelter and Wax Heads?"

   Answer by Stuart Dinsey: We expect to launch at least six new releases this financial year, starting with Wax Heads, which released last week. Other titles, including Sovereign Tower and Dragon Shelter, will launch this summer.

4. Question by Jinesh Joshi: "On Sportskeeda, revenue declined by about 38% in FY '26. Is it really possible to mitigate this challenge?"

   Answer by Nitish Mittersain: Recovery has been difficult, but we continue to optimize costs and expect EBITDA margins to increase in FY '27. Our focus remains on improving our existing IPs that are showing positive results.

5. Question by Vivekanand: "How do you rate your preparedness to serve multiple gaming growth engines across segments, including publishing?"

   Answer by Nitish Mittersain: Our Centers of Excellence are equipped to support expanding IPs and technologies. We've invested in AI and core gaming functions, which will significantly enhance performance across our portfolio in FY '27.

6. Question by Vivekanand: "Could you discuss the IPO timelines for NODWIN and what is the plan to raise cash?"

   Answer by Akshat Rathee: NODWIN aims to raise between $100 million to $200 million for growth, preparing for an IPO as soon as market conditions are favorable, focusing on delivering value before going public.

7. Question by Atul Borse: "What will Nazara's growth or margin profile look like in FY '27 post-Bluetile consolidation?"

   Answer by Nitish Mittersain: We expect strong organic growth and margin expansion from our existing businesses supported by Centers of Excellence and AI initiatives. We anticipate overall EBITDA to double with Bluetile's inclusion from Q1 FY '27.

8. Question by Atul Borse: "What caused the sequential decline in AdTech revenue?"

   Answer by Rohit Sharma: The decline is due to a strategic shift to focus on our tech-driven DSP business, reducing efforts in declining traditional AdTech sectors. This pivot is expected to yield higher growth and margins in FY '27.