Nazara’s Q1 FY27 results hit by associate losses and impairment; Nitish Mittersain steps down as CEO

Nazara Technologies, a gaming and sports media company, reported a 14% year on year decline in operating revenue during the first quarter of FY27. The company also slipped into a loss during the quarter.

This is a rare quarterly loss for Nazara, which last reported a net loss of Rs 34 crore in Q2 FY26 following a write off related to its investment in PokerBaazi after the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

Nazara’s operating revenue declined to Rs 429 crore in Q1 FY27 from Rs 499 crore in Q1 FY26, according to its financial statements filed with the National Stock Exchange.

Gaming remained the company’s largest revenue contributor, accounting for 60.4% of operating revenue. Revenue from the segment grew 14.1% year on year to Rs 275 crore from Rs 241 crore in the same quarter last year. Meanwhile, esports revenue declined 81.8% to Rs 28 crore, while ad tech revenue increased 18.9% to Rs 126 crore.

Including Rs 9 crore in other income, Nazara’s total income stood at Rs 438 crore in Q1 FY27, compared to Rs 576 crore in the corresponding quarter of the previous fiscal year.

On the expense front, total expenditure declined 12.7% to Rs 455 crore in Q1 FY27 from Rs 521 crore in Q1 FY26. Advertising and business promotion remained the largest cost at Rs 153 crore, followed by employee benefits at Rs 82 crore and content, event and web server expenses at Rs 63 crore.

Nazara slipped into a net loss of Rs 82 crore in Q1 FY27, compared to a net profit of Rs 51 crore in the same quarter last year. The loss included Rs 62 crore as the company’s share of losses from associates and a Rs 22 crore impairment loss.

On a sequential basis, operating revenue grew 7.8% from Rs 398 crore in Q4 FY26 to Rs 429 crore in Q1 FY27, while the company swung from a net profit of Rs 55.7 crore in the previous quarter to a net loss.

At the close of trading on Monday, Nazara Technologies’ shares settled at Rs 339.55, giving the company a market capitalization of approximately Rs 12,568 crore ($1.32 billion).

In a separate filing, the board appointed Raymond Albaladejo Stauffer as CEO, effective September 1, 2026. Founder Nitish Mittersain stepped down as CEO and will continue as Managing Director, focusing on long term strategy and strategic partnerships.