Nazara Technologies (NAZARA IN) – Q4FY26 Result Update – On a path of profit-led growth – BUY
Published on 13 May 2026
We increase our FY27E EPS estimate by 34% as we factor in the consolidation impact arising from acquisition of Blue Tile (BT) Games for a period of 12 months versus earlier expectation of 9 months. NAZARA IN’s operational performance was better than our estimate with EBITDA margin of 19.5% (PLe 17.2%) led by Curve Digital and Fusebox. Further, PAT was aided by one-time revaluation gain of Rs310mn in Rusk Media. We believe acquisition of BT Games can be a game changer for NAZARA IN as it lends material scale advantage without compromising on margins (BT games reported an EBITDA margin of 18.1% in CY25). Further, performance linked earn-out structure of the transaction brings in accountability and minimizes upfront capital drain. Led by acquisition of BT Games, we expect revenue CAGR of 47% over FY26-FY28E with EBITDA margin of 16.2%/16.8% in FY27E/FY28E respectively. We maintain BUY on the stock with SoTP based TP of Rs319.
