Nazara Technologies (NAZARA IN) – Event Update – A bold bet in casual gaming space – ‘Upgrade to BUY’
Published on 20 Mar 2026
We upgrade NAZARA IN to “BUY” (earlier “HOLD”) with a TP of Rs336 (earlier Rs276) as we incorporate the acquisition of BT Games and BP Systems into our valuation. BT Games operates a portfolio of 17 casual games while BP Systems is a distribution platform that enables user acquisition. We believe the combination of game development (BT Games) and user acquisition (BP Systems) capabilities would lend better consumer engagement and monetization opportunities for NAZARA IN. Further, the deferred ownership plan (balance 50% stake to be acquired by 2028) and earn-out incentive (pay-out of US$98mn) reflects a balanced risk-reward framework without front-loading capital or assuming undue integration risk. We expect BT Games and BP Systems to report revenue/EBITDA CAGR of 15%/20% over the next 2 years and have valued the casual gaming business at EV/sales multiple of 1.5x over FY28E (implied EV/EBITDA multiple of 7.6x).
