Nazara's adtech business surges 41% despite 14% on-year decline in Q1 revenue
New Delhi: Nazara Technologies' adtech business emerged as the company's fastest-growing segment in the first quarter of FY27, with revenue rising 41. 0% on-year to Rs 126. 1 crore from Rs 106. 1 crore a year. . .
New Delhi: Nazara Technologies' adtech business emerged as the company's fastest-growing segment in the first quarter of FY27, with revenue rising 41. 0% on-year to Rs 126. 1 crore from Rs 106. 1 crore a year ago. Sequentially, the business grew 41. 3% from Rs 89. 2 crore in the March quarter, increasing its contribution to the company's consolidated revenue to 29. 4%, compared with 21. 2% in the year-ago period. The sharp growth in adtech came even as Nazara's consolidated revenue declined 14% annually to Rs 428. 8 crore from Rs 498. 8 crore, largely due to the deconsolidation of NODWIN Gaming from August 2025. On a sequential basis, however, revenue increased 7. 8% from Rs 397. 8 crore in Q4FY26. Excluding NODWIN, the company said comparable consolidated revenue grew around 9% on-year. The gaming business remained Nazara's largest revenue contributor, posting Rs 275. 0 crore in revenue, up 14. 1% year-on-year from Rs 240. 9 crore, while remaining broadly flat compared with Rs 278. 5 crore in the previous quarter. In contrast, the esports business reported revenue of Rs 27. 8 crore, down 82. 0% on an annual basis from Rs 154. 1 crore and 12. 9% sequentially from Rs 31. 9 crore, reflecting the deconsolidation of NODWIN Gaming. Despite the strong adtech performance, Nazara reported a pre-tax loss of Rs 80. 2 crore, compared with a profit of Rs 30. 6 crore in the corresponding quarter last year and Rs 42. 5 crore in the previous quarter. The company attributed the loss largely to a Rs 62. 4 crore share of losses from associates and a Rs 21. 8 crore impairment charge related to its remaining investment in real-money gaming businesses following the Supreme Court's GST ruling. Commenting on the results, Nitish Mittersain, Founder and Managing Director of Nazara Technologies, said, “Q1FY27 clearly shows that Nazara is on the right trajectory by focusing on its core gaming business and the Bluetile and BestPlay acquisition is an important step forward in Nazara's evolution into a global gaming operating platform. ”He added, “Raymond's appointment strengthens Nazara's leadership for the scale we now have. He brings a founder's mindset and a proven record of AI-enabled development, operating discipline and capital-efficient growth. As Founder and Managing Director, I will continue to shape Nazara's long-term strategy, portfolio direction and key relationships, working closely with Raymond and the Board. ”Raymond A. Stauffer, who will take over as CEO from September 1, 2026, subject to regulatory approvals, said, “Nazara has built a strong portfolio of global gaming IPs and entrepreneurial businesses. My focus will be to strengthen execution across product, AI, user acquisition and monetisation, while preserving entrepreneurial ownership within each business. ”Looking ahead, Nazara expects a significant scale-up from the second quarter after amending its acquisition of Bluetile and BestPlay to acquire 100% ownership for USD 303 million (around Rs 2,909 crore). The two businesses generated Rs 518 crore in revenue and Rs 55 crore in EBITDA during Q1 FY27 and are expected to be consolidated after the transaction closes.