# Nazara Slips Into The Red In Q1, Posts ₹83 Cr Loss — retained record

> Retained news record from news:india-inc42.

Canonical: https://highsignal.app/data/records/c960a0902ee796dc

[← sources](https://highsignal.app/data)


source: [news](https://highsignal.app/data/news) (news:india-inc42)  published 2026-08-03 18:52 ingested 2026-08-04 08:45

[original source ↗](https://inc42.com/buzz/nazara-slips-into-the-red-in-q1-posts-%e2%82%b983-cr-loss/)

## retained text



```
Gaming major Nazara Technologies slipped to the red in Q1 FY27, reporting a net loss of ₹82.5 Cr as against ₹51.3 Cr in the year quarter. Sequentially, the bottom line eroded from a profit of ₹55.7 Cr in Q4 FY26. The gaming major swung to losses as operating revenue declined 14% to ₹428.8 Cr during the quarter under review from ₹498.8 Cr in Q1 FY26. However, on a QoQ basis, the top line rose 7.8% from ₹397.8 Cr in Q4 FY26. The revenue decline was primarily due to the deconsolidation of NODWIN Gaming. Adjusted for the NODWIN impact, Nazara said Q1 revenue grew 9% YoY. Also to blame for the losses was listed gaming giant logging ₹84.2 Cr in impairment and other losses during the quarter ended June 2026. While Nazara recognised an impairment cost of ₹21.8 Cr related to Pokerbaazi parent Moonshine Technologies Pvt. Ltd., it also incurred an expense of ₹62.4 Cr due to “share of net (loss) of associates accounted for using the equity method”. Including other income of ₹8.8 Cr, Nazara’s total income stood at ₹437.6 Cr during the quarter. Meanwhile, total expenses (including the ₹21.8 Cr impairment cost) declined 12.6% to ₹455.4 Cr in Q1 FY27 from ₹521 Cr in the corresponding quarter last year. In a filing with the exchanges, Nazara said that its EBITDA contracted 2% YoY to ₹46 Cr in Q1 FY27, while its EBITDA margin improved to 10.8% from 9.5% in the year ago quarter. New CEO At Nazara Alongside its financials, the gaming major also announced that cofounder Nitish Mittersain would step down as the CEO of the company, effective September 1. However, he will continue to remain the managing director of the company. Post the succession, he will oversee Nazara’s long-term strategy, portfolio direction, key stakeholder relationships and will work closely with the company’s board. He will be succeeded by Bluetile Games’ founder and CEO Raymond Stauffer, starting September 1. While his appointment has been cleared by the gaming company’s board, it is still subject to regulatory clearances. Stauffer will also be appointed a key managerial personnel (KMP) of the company post approvals. In a statement, Nazara said that Raymond will lead the company’s day-to-day operations, portfolio performance and shared operating capabilities across product, data, AI, user acquisition and monetisation. “Nazara has built a strong portfolio of global gaming IPs and entrepreneurial businesses. My focus will be to strengthen execution across product, AI, user acquisition and monetisation, while preserving entrepreneurial ownership within each business,” said Stauffer in a statement. The appointment came as Nazara’s board amended its previously announced deal to acquire Spanish casual gaming studio Bluetile Games and player engagement and distribution startup BestPlay. Under the restructured transaction, the homegrown gaming company, via its UK entity, will acquire the two platforms in an all-cash deal for $303 Mn. This marks a 3X increase from the $100.3 Mn deal size announced by Nazara in March this year. Nazara will now pay $89 Mn at the time of the closing of the deal, which is expected to close “shortly” by Q2 FY27. The remaining $214 Mn will be paid in tranches by April 1, 2027. “The amended structure provides certainty of ownership and acquisition price, full economics upon closing, single-owner governance, immediate operating integration and greater strategic flexibility,” said Nazara in a statement. It is pertinent to note that Bluetile and BestPlay reported a revenue of ₹518 Cr in Q1 FY27, while clocking an EBITDA of ₹55 Cr. Simultaneously, the company’s board also approved a proposal to invest up to ₹9.9 Cr in cash in its indoor play center chain, Funky Monkeys, via a combination of primary subscription and secondary deals. Once completed, Nazara’s stake in Funky Monkeys will increase to nearly 68.1%. The board also approved a plan to extend an unsecured loan of ₹24 Cr to its indoor gaming subsidiary to Smaaash Entertainment. In a filing with the exchanges, the listed gaming major also said that Arun Vijaykumar Gupta has stepped down as an independent director on the company’s board. In his stead, Con Anthony Conlon has been appointed as an independent director for a period of five years. Two months after Nazara’s board approved raising ₹474 Cr via warrants through a preferential issue, the company said that it has allocated 9 Lakh equity shares to Peter Thiel’s Founders Collective Fund following the conversion of warrants. “Founders Collective Fund has paid the balance warrant subscription amount of ₹17.6 Cr, being 75% of the warrant issue price (i.e., ₹195/- per warrant), upon exercise of the conversion option,” added Nazara. Consequent to the allotment, the equity share capital of the company now stands ₹76.9 Cr as against ₹76.8 Cr earlier. Zooming Into Nazara’s Q1 As usual, the gaming business accounted for 64% of Nazara’s total operating revenue at nearly ₹275 Cr, up 14% YoY. The vertical clocked an EBITDA of ₹54 Cr, while EBITDA margin stood at 19.5%. Within gaming, Fusebox’s narrative gaming business, which includes Love Island and Big Brother, saw revenue jump 12% YoY to ₹82 Cr in Q1 FY27. Meanwhile, EBITDA stayed flat YoY at ₹10 Cr during the quarter. Kiddopia’s top line jumped 19% YoY to ₹54 Cr on the back of higher user acquisition (UA) investment, resulting in EBITDA falling to ₹7 Cr from ₹8 Cr in the year ago period. “Q1FY27 revenue grew 19% YoY; higher UA spend, deployed against improving unit economics, moderated near-term EBITDA,” read Nazara’s investor presentation. On similar lines, Animal Jam revenue shot up 11% YoY to ₹29 Cr, while Curve Games contributed a revenue of ₹53 Cr against an EBITDA of ₹14 Cr. Its offline business, spanning Funky Monkeys and Smaaash, reported a revenue of 34 Cr during the quarter, while EBITDA and EBITDA margins stood at ₹11 Cr and 33%, respectively. Meanwhile, Nazara’s adtech arm, comprising Datawrkz and Space & Time, reported a Q1 FY27 revenue of ₹126 Cr, while EBITDA stood at a mere ₹3 Cr. While the company claimed that Datawrkz saw an improving earnings profile during the quarter, Space & Time grew EBITDA YoY despite a softer demand environment across its UK/ EU client base. The quarter also saw sports tech business, Sportskeeda, deliver positive EBITDA, while another sports tech vertical Pro Football Network saw EBITDA margins improve to 19% as against 0.1% in Q1FY26. Its esports and youth media subsidiary NODWIN Gaming reported Q1 FY27 revenue of ₹116 Cr, up 9% YoY, while EBITDA margins improved to -8% from -11% in the year ago quarter. Naara attributed this to Q1 being traditionally the slowest quarter for NODWIN. “Revenue growth (for NODWIN) has been stable, and losses are substantially lower due to corporate actions undertaken in the past year… Post Freaks4u, NODWIN pressed pause on new acquisitions to fine-tune its M&A playbook. Another objective of the planned pause is to showcase NODWIN's organic growth, which is poised to be at 30% for this FY,” read the investor presentation. Shares of Nazara closed Monday’s trading session 0.13% higher at ₹339.7 on the BSE.
```



document fetched 2026-08-04 08:45 · canonical https://inc42.com/buzz/nazara-slips-into-the-red-in-q1-posts-%e2%82%b983-cr-loss