Nazara Technologies

Nazara Technologies, a prominent name in gaming and sports media, reported a decline of 14% in operating revenue compared to the previous year during the first quarter of FY27. This quarter marks an unusual instance of loss for Nazara, which had last experienced a net loss of Rs 34 crore in Q2 FY26, attributed to write-offs related to its investment in PokerBaazi following the introduction of the Promotion and Regulation of Online Gaming Act, 2025.

Operating Revenue Overview

Nazara’s operating revenue fell to Rs 429 crore in Q1 FY27, down from Rs 499 crore in Q1 FY26, as detailed in its financial statements submitted to the National Stock Exchange. Gaming continued to be the largest revenue source for the company, contributing 60.4% of total operating revenue. This segment saw a year-on-year revenue increase of 14.1%, rising to Rs 275 crore from Rs 241 crore during the same quarter last year.

Esports and Ad Tech Revenue

In contrast, esports revenue saw a significant decline of 81.8%, dropping to Rs 28 crore, while ad tech revenue experienced an 18.9% increase, reaching Rs 126 crore. Overall, including Rs 9 crore from other income, Nazara’s total income amounted to Rs 438 crore in Q1 FY27, a decrease from Rs 576 crore in the equivalent quarter of the previous financial year.

Expenditure Analysis

On the cost side, total expenses reduced by 12.7%, amounting to Rs 455 crore in Q1 FY27, down from Rs 521 crore in Q1 FY26. Advertising and business promotion constituted the largest expense at Rs 153 crore, followed by employee benefits at Rs 82 crore and content, event, and web server costs at Rs 63 crore.

Net Loss Overview

Nazara reported a net loss of Rs 82 crore in Q1 FY27, as opposed to a net profit of Rs 51 crore in the same quarter of the prior year. This loss included Rs 62 crore as the company’s share of losses from associates, along with a Rs 22 crore impairment loss. Sequentially, operating revenue increased by 7.8% from Rs 398 crore in Q4 FY26 to Rs 429 crore in Q1 FY27, whilst the company shifted from a net profit of Rs 55.7 crore in the previous quarter to a net loss.

Market Performance

At the close of trading on Monday, shares of Nazara Technologies finished at Rs 339.55, giving the company a market capitalisation of approximately Rs 12,568 crore ($1.32 billion).

Leadership Changes

In a separate announcement, the board of Nazara appointed Raymond Albaladejo Stauffer as CEO, effective September 1, 2026. The founder, Nitish Mittersain, stepped down from the CEO role but will continue as Managing Director, concentrating on long-term strategy and strategic partnerships.