Nazara Technologies (NAZARA IN) – Q2FY27 Result Update – Capital allocation decisions of new leadership eyed – Downgrade to ‘HOLD’
Published on 28 Oct 2026
We cut our FY28E/FY29E EBITDA estimate by 5%/7% as we fine tune our margin assumptions for Kiddopia, SportsKeeda, and DataWrkz. NAZARA IN’s operational performance was broadly in-line with EBITDA margin of 14.9% (PLe 15.3%) while bottom-line was aided by higher-than-expected other income of INR137mn (PLe INR93mn) and lower than expected finance cost of INR38mn (PLe INR70mn). After having undergone a leadership change, pivot is now on scaling the gaming segment and opportunistically divesting the non-core businesses (Nodwin, Ad-tech etc). Led by the consolidation of BT & BP games, we expect sales/EBITDA CAGR of 38%/44% over FY26-FY29E. The stock trades at EV/EBITDA multiple of 27x/22x over our FY28E/FY29E EBITDA estimates and has appreciated by 71% since our last upgrade note in March-26. Downgrade to “HOLD” with a SoTP based TP of INR396 (no change in target multiple of any sub-entity).
