Nazara Technologies Q1 FY27 Earnings Call: Approves USD 303 Mn BlueStacks-Nodwin Deal, Gaming Revenue Climbs 14% YoY

Nazara Technologies Ltd held its Q1 FY27 earnings call on August 03, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Headline Numbers & Profitability

• Consolidated revenue of Rs.429 Cr in Q1 FY2026-2027, with EBITDA of Rs.46 Cr and a PAT loss of Rs.82 Cr largely driven by share of loss from associates and impairment loss.
• Comparable revenue (ex-Nodwin deconsolidation) grew ~9% YoY in Q1 FY2026-2027, reflecting underlying organic momentum across gaming and content segments.
• Gaming revenue rose 14% YoY to Rs.275 Cr in Q1 FY2026-2027, with an EBITDA margin of 19.5% (Rs.54 Cr EBITDA); mobile gaming (BlueStacks, BestPlay) posted 54% YoY growth.
• Share of loss of associates hit Rs.62 Cr in Q1 FY2026-2027, driven primarily by a complete write-off of the remaining carrying value related to the Moonshine investment, not Nodwin’s operating performance.

Vertical-Wise Revenue & Operating Metrics

• TCM console publishing delivered Rs.53 Cr revenue in Q1 FY2026-2027 with EBITDA margin of 27% (Rs.14 Cr); more than 60% of development investment allocated to new signings, with new releases beginning from Q2 FY2026-2027.
• Offline gaming revenue of Rs.34 Cr in Q1 FY2026-2027, EBITDA margin of 33% (Rs.11 Cr); Funky Monkey revenue jumped 58% YoY driven by same-store growth and store expansion.
• DataWorks revenue of Rs.126 Cr in Q1 FY2026-2027 with EBITDA of Rs.3 Cr; Absolute Sports (Sportskeeda) revenue of Rs.28 Cr with EBITDA of Rs.1 Cr; Sportskeeda delivered positive EBITDA, while Pro Football Network posted a 19% EBITDA margin.
• Kinopia revenue grew 19% YoY in Q1 FY2026-2027; Animajam revenue up 11% YoY; Fusebox (Love Island) revenue increased 12% YoY to Rs.82 Cr, with Love Island ranking #1 in free apps and #5 in top-grossing apps in the US.
• Nodwin’s Q1 (traditionally slowest quarter) saw stable revenue with losses substantially lower YoY; Comic Con Mumbai sold out, IP expanding to 14 events in India; Comic Con World registered as a global IP.

BlueStacks/Nodwin Deal Restructure & CEO Transition

• Board approved revised acquisition structure for 100% of BlueStacks and Nodwin at a fixed cash consideration of USD 303 million; USD 89 million payable at closing, USD 214 million in agreed tranches by 1 April 2027.
• BlueStacks and Nodwin combined business reported Rs.518 Cr revenue and Rs.55 Cr EBITDA in Q1 FY2026-2027; consolidation expected from Q2 FY2026-2027.
• Raymond Stoffer (BlueStacks CEO) appointed as Nazara Technologies CEO, effective 1 September 2026, subject to regulatory approvals; Nitish Mittersain continues as founder and MD, focusing on long-term strategy, portfolio direction, and key relationships.
• Management changed the payout structure from three-year staggered performance-linked payouts to a fixed payment due by April 2027, citing that performance-based payouts could have exceeded 180% of committed amounts and to avoid conflict with Raymond’s role as overall CEO.
• The new structure eliminates 50% cash leakage to Bluetrail founders, with full cash flows now accruing to Nazara; a detailed financing plan exists but was not disclosed.

Curve Games Releases, Margin Compression & Investment

• Curve Games' Badlands sold 50,000–60,000 copies in Q1 FY2026-2027, in line with expectations; Dragon Shelter demo exceeded expectations with 130,000 Steam wishlists, full release targeted for September 2026 (Q2 FY2026-2027).
• Sovereign Tower wishlists exceeded expectations and is launching this week; Curve Games expects revenue for August 2026 to be in line or ahead; no in-app purchases are planned — revenue will come solely from unit sales.
• Curve Games EBITDA margin fell to 27% in Q1 FY2026-2027 from >40% in FY2025-2026; management expects margins to improve from new title contributions in subsequent quarters.
• BlueStacks EBITDA margin decreased to ~11% in Q1 FY2026-2027 from 17.6% in Q1 FY2025-2026, driven by increased spending on new games and features for Best Play; management has “full flexibility” to adjust margins upward once the higher revenue baseline is secured.
• Total capital commitment of ~Rs.50 Cr for the offline gaming business (Smash and Funky Monkeys) over the next couple of years; Smash 2.0 launch in Mumbai, Lower Parel expected in Q4 FY2026-2027 (Jan–Mar 2027).
• Supreme Court upheld tax notices against real-money gaming subsidiaries; management confirmed Nazara’s exposure is limited to its investment in those firms, which has been fully written off.

Guidance, Pipeline & Risks

• Fusebox: management optimistic for high 20%+ growth for FY2026-2027; the Big Brother game is scaling and expected to reach a significant revenue threshold in FY2026-2027; the Traitors game (global rights) is a key pipeline item.
• Nodwin targets organic growth of 30%+ for FY2026-2027 and is progressing towards IPO readiness; geopolitical environment noted as “a little crazy” for the IPO process, though pre-IPO interest is strong.
• Sportskeeda: revenue expected to increase sequentially in Q2, Q3, and Q4 FY2026-2027 as the US sports season (NFL, NBA) kicks in; management is diversifying traffic sources away from Google and continuing cost optimization.
• AdTech (DataWorks): margins expected to improve as the product business (Visible DSP) scales, with fixed costs already incurred; Senthil Govindan is hiring sales staff in the UK.
• No quantitative revenue, EBITDA, or margin guidance was offered at the Nazara Technologies level for FY2026-2027; management declined to provide a specific revenue or EBITDA growth target for BlueStacks.
• A board meeting for a preferential issue (fundraise) is scheduled, but management declined to comment on it.