Nazara Technologies Returns to Profitability in Second Quarter

Gaming company Nazara Technologies reported a profit of ₹35.4 crore for the second quarter of the 2027 fiscal year, marking a turnaround from the ₹33.9 crore net loss recorded in the same period a year earlier. The company’s financial performance also improved sequentially, moving from a loss of ₹82.5 crore in the first quarter of fiscal year 2027.

Revenue Growth and Operational Updates

The company’s operating revenue increased by nearly 52%, reaching ₹803.2 crore during the quarter, compared to ₹526.5 crore in the second quarter of fiscal year 2026. On a quarter-on-quarter basis, revenue rose 87.3% from ₹428.8 crore. Nazara cited the addition of BlueTile and BestPlay, which contributed ₹329 crore to the top line starting in August 2026, alongside organic growth across its business verticals as primary drivers for the revenue surge.

Total income for the quarter reached ₹816.9 crore, which includes ₹13.7 crore in other income. Total expenses rose 43.7% to ₹767.6 crore, up from ₹534.3 crore in the year-ago period. This expense figure included ₹6.7 crore in impairment costs. The company reported that its EBITDA grew 93% year-on-year to ₹120 crore, with EBITDA margins expanding by 311 basis points to 14.9%.

Strategic Shifts and Company Outlook

Nazara CEO Raymond Stauffer attributed the performance to the company’s focus on building a portfolio of games on a shared platform. According to the company, BlueTile and BestPlay increased their EBITDA by 64% within their first two months under Nazara’s ownership. Furthermore, ongoing investments in content resulted in 11% revenue growth and 17% EBITDA growth across existing gaming studios.

The previous year’s losses were influenced by ₹914.7 crore in impairment and other charges recorded in the quarter ending September 2025.

Why it matters: This financial recovery highlights the impact of recent acquisitions on Nazara’s bottom line. For investors and industry observers, the data suggests that the integration of new gaming studios is successfully offsetting higher operational costs, signaling a stabilization of the company’s growth strategy in a competitive market.