Nazara Technologies Reports 52.7% Revenue Growth for Q2 FY27
Nazara Technologies, a prominent gaming and sports media company, has achieved a significant 52.7% rise in operating revenue for Q2 FY27, reaching Rs 803 crore, despite experiencing a 3.6-fold increase in advertising costs. This remarkable growth showcases the company’s resilient strategy even in challenging market conditions.
According to the unaudited financial statements filed with the National Stock Exchange, Nazara’s operating revenue rose from Rs 526 crore in Q2 FY26 to Rs 803 crore in Q2 FY27. On a half-yearly comparison, the operating revenue achieved a 20.2% increase, moving from Rs 1,025 crore in H1 FY26 to Rs 1,232 crore in H1 FY27.
Gaming Sector Drives Revenue
Gaming has remained the principal source of revenue for Nazara, contributing approximately 81.7% of the total operating revenue. Revenue from this segment surged by 2.22 times, rising to Rs 656 crore in Q2 FY27 from Rs 296 crore a year prior.
Conversely, the revenue generated from the ad-tech sector fell by 13.9%, dropping to Rs 124 crore from Rs 144 crore. Additionally, revenue from the esports segment fell sharply by 73.6%, coming down to Rs 23 crore from Rs 87 crore over the same time period.
Increased Operational Costs Impacted Profitability
Advertising and business promotion costs became the most significant expenditure for Nazara, skyrocketing 3.6 times to Rs 417 crore in Q2 FY27 from Rs 116 crore in Q2 FY26. Employee benefit expenses also saw a 9.2% uptick, increasing to Rs 85.21 crore from Rs 78 crore during the same timeframe.
On the other hand, expenses related to content, events, and web hosting saw a noteworthy decline of 58.3%, falling to Rs 66.75 crore from Rs 160 crore. Depreciation costs rose by 20.6% to reach Rs 73.56 crore, while commission-related expenses slightly decreased by 2% to Rs 50 crore. Other operational expenses experienced an 11% rise, amounting to Rs 75.5 crore compared to Rs 68 crore in the previous year.
Consequently, Nazara’s overall expenditure climbed by 43.8%, increasing from Rs 534 crore in Q2 FY26 to Rs 768 crore in Q2 FY27. Despite these rising costs, the company achieved a profit of Rs 35.36 crore, a notable improvement from the loss of around Rs 34 crore observed in Q2 FY26. In the first half of FY27, the company recorded a net loss of Rs 47.11 crore, contrasting with a net profit of Rs 17.41 crore in H1 FY26.
At the end of trading, shares of Nazara Technologies were valued at Rs 399.95, positioning the company’s market capitalisation at approximately Rs 16,402 crore.