Nazara Technologies (NAZARA IN) – Q1FY27 Result Update – Integration of BT & BP acquisition to drive re-rating – BUY
Published on 06 Aug 2026
NAZARA IN’s topline performance was marginally better than our estimates while operational performance was sub-par at 10.8% (PLe 13.4%) led by increased investments in new title signings at Curve Games (with nearly 60% of investments allocated towards new signings) and continued spending to scale Big Brother. Further, increased share of loss from associates at INR624mn & impairment charge of INR218mn dragged the bottom-line. Led by the acquisition of BT & BP games, we expect sales CAGR of 54% over FY26-FY28E with EBITDA margin of 14.2%/15.6% in FY27E/FY28E. We have incorporated dilution arising from preferential issue of INR7,335mn to arrive at a SoTP based TP of INR378. Retain BUY.
