Metrics raised 1
- Bluetile & BestPlay acquisition stake raised to 100% for fixed all-cash USD 303 million (from original 50% + earnouts structure)
Event Participants
Executives
2 Nitish Mittersain, Rakesh Shah
Analysts
0 Transcript is an investor presentation; no Q&A session included.
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹429 crore | -14% YoY due to NODWIN deconsolidation from August 2025; ex-NODWIN comparable revenue grew ~9% YoY |
| Consolidated EBITDA | ₹46 crore | -2% YoY; margin expanded 130 bps to 10.8% |
| Consolidated PAT | -₹82 crore | Loss driven by share of loss from associates (₹62 crore) and impairment loss (₹22 crore) |
| Gaming Revenue | ₹275 crore | +14% YoY; represents 64% of consolidated revenue |
| Gaming EBITDA | ₹54 crore | -9% YoY; margin 19.5%; all gaming businesses EBITDA-positive |
| Gaming EBITDA Margin | 19.5% | Down from ~24.5% YoY due to higher user acquisition spend across portfolio |
| Others Revenue | ₹154 crore | -41% YoY due to NODWIN deconsolidation; broadly flat on comparable basis |
| Others EBITDA | ₹4 crore | Margin 2.9%; improved profile post-NODWIN deconsolidation |
| Bluetile & BestPlay Revenue (Pre-consolidation) | ₹518 crore | +54% YoY; to be consolidated from Q2FY27 |
| Bluetile & BestPlay EBITDA (Pre-consolidation) | ₹55 crore | Flat YoY; margin compressed from 16.6% to 10.7% as UA spend rose from 78% to 85% of revenue |
| Fusebox Revenue | ₹82 crore | +12% YoY; EBITDA flat at ₹10 crore; ranks #1 Free Apps, #5 Top Grossing in US |
| Kiddopia Revenue | ₹54 crore | +19% YoY; 24-month LTV/CAC improved to 2.08x from 1.77x; EBITDA ₹7 crore vs ₹8 crore YoY |
| Animal Jam Revenue | ₹29 crore | +11% YoY; EBITDA flat at ₹3 crore |
| Curve Games Revenue | ₹53 crore | EBITDA ₹14 crore; margin 27%; investing in new release slate (>60% of dev spend) |
| Smaaash Revenue | ₹27 crore | EBITDA ₹7 crore; Funky Monkeys revenue ₹8 crore, EBITDA ₹4 crore; combined margin 33% |
| Datawrkz Revenue | ₹126 crore | EBITDA ₹3 crore; Space & Time grew EBITDA YoY demonstrating margin resilience |
| Absolute Sports Revenue | ₹28 crore | EBITDA ₹1 crore; PFN delivered 19% EBITDA margin vs (0.1%) YoY |
| Share of Loss from Associates | ₹62 crore | Primarily NODWIN; vs ₹24 crore loss YoY |
| Impairment Loss | ₹22 crore | No impairment in Q1FY26 |
| Unallocated Corporate Costs | ₹11 crore | Deducted from segment EBITDA to arrive at consolidated EBITDA |
| Illustrative Consolidated Revenue (with Bluetile/BestPlay) | ₹947 crore | Arithmetic aggregation of Q1FY27 reported figures; gaming ~84% of revenue |
| Illustrative Consolidated EBITDA (with Bluetile/BestPlay) | ₹101 crore | Arithmetic aggregation; not a forecast or pro forma |
Geographic & Segment Commentary
Gaming - Bluetile & BestPlay: Revenue surged 54% YoY to ₹518 crore driven by new game launches, improved BestPlay engagement/monetisation via LiveOps, and enhanced data/ad monetisation. UA spend increased 67% YoY to 85% of revenue, compressing EBITDA margin to 10.7% while revenue less UA spend grew from ₹73 crore to ₹80 crore. Consolidation from Q2FY27 at fixed all-cash USD 303 million.
Gaming - Fusebox: Revenue grew 12% YoY to ₹82 crore scaling Love Island UA while investing in Big Brother growth and Traitors development. EBITDA maintained at ₹10 crore. Achieved #1 Free Apps and #5 Top Grossing rank in US App Store.
Gaming - Kiddopia: Revenue grew 19% YoY to ₹54 crore with UA scaled behind improving unit economics. 24-month LTV/CAC improved to 2.08x from 1.77x in Q1FY26. Near-term EBITDA moderated to ₹7 crore from ₹8 crore due to higher UA deployment.
Gaming - Animal Jam: Revenue increased 11% YoY to ₹29 crore supported by content cadence and growth investment. EBITDA stable at ₹3 crore.
Gaming - Curve Games: Remained strongly profitable at 27% EBITDA margin (₹14 crore EBITDA on ₹53 crore revenue) while funding next release slate. >60% of development investment allocated to new signings; new releases from Q2FY27. Transactional sales for Human: Fall Flat and For The King II increased YoY.
Gaming - Smaaash & Funky Monkeys: Combined revenue ₹34 crore (+58% YoY for Funky Monkeys), EBITDA ₹11 crore, margin 33%. Growth driven by same-store sales and store expansion. Smaaash 2.0 under development anchored in social, competitive, immersive tech-led experiences.
Others - Datawrkz & Absolute Sports: Datawrkz revenue ₹126 crore, EBITDA ₹3 crore with Space & Time growing EBITDA YoY. Focus shifting to scaling higher-margin Vizibl and new market expansion. Absolute Sports revenue ₹28 crore, EBITDA ₹1 crore; Sportskeeda cost optimisation full effect from Q2, new distribution via content syndication, US sports season to support healthier EBITDA in Q2/Q3.
Associate - NODWIN: Deconsolidated from August 2025. Organic growth poised at 30% for FY27. Live vertical: Comic Con Mumbai sold out, 14 India events planned, Comic Con World IP registered with 2+ international launches, Space Fest MoU with Maharashtra Govt. Esports: CS Clutch Series, PUBG Mobile partnerships scaling, EVO Singapore announced. Content vertical: 3 new initiatives (trading cards, pop-culture merch, National Math Bee), Playground IP expanding to America. AI deployment across 10+ tools targeting ~₹12 crore cost reduction over 3 years. Sub-5% attrition, zero founder attrition post-earnouts.
Company-Specific & Strategic Commentary
Bluetile & BestPlay 100% Acquisition Accelerated: Board approved amended structure to acquire 100% for fixed all-cash USD 303 million (₹2,550 crore approx) vs original 50% + earnouts. USD 89 million at first close, balance USD 214 million by April 1, 2027. Full economics from day one, single-owner governance, immediate integration. Maxime Loppin appointed CEO of Bluetile/BestPlay. Evaluated by new Independent Investment Committee (Muraarie Rajan, Mithun Sacheti, Vivek Chopra).
CEO Transition & Leadership Restructuring: Raymond A. Stauffer (founder/former CEO of Bluetile & BestPlay, built to ₹254 crore EBITDA in CY25) appointed CEO effective September 1, 2026, subject to regulatory approvals. Nitish Mittersain continues as Founder & Managing Director shaping long-term strategy, portfolio direction, key relationships. Stauffer to lead day-to-day operations, integration, portfolio performance, shared operating capabilities.
Independent Investment Committee Governance: Newly constituted committee of three independent/non-executive directors to oversee Bluetile/BestPlay consideration payments, integration capital deployment, performance against investment case, and all future material M&A, follow-on investments, divestments. Board retains final approval.
AI-Enabled Operating Platform: Bluetile's AI-powered game production platform enables weeks from concept to store, lean incremental headcount per title, shared learning across 26+ live titles. NODWIN deployed 10+ AI tools across Finance, HR, Legal, Sales, Production targeting ~₹12 crore cost reduction over 3 years. Stauffer brings "proven record of AI-enabled development."
Offline IP Expansion Playbook: Smaaash and Funky Monkeys expanding via proven operating playbook - same-store growth plus new store rollouts. Smaaash 2.0 in development focusing on social, competitive, immersive group experiences.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Bluetile & BestPlay Consolidation | From Q2FY27 | Subject to closing; full economics accrue to Nazara shareholders from day one |
| NODWIN Organic Growth | ~30% for FY27 | Post M&A pause to fine-tune playbook; restarting acquisition engine soon |
| Sportskeeda EBITDA | Healthier in Q2/Q3 FY27 | Full effect of cost actions visible from Q2; US sports season + content syndication partnerships |
| NODWIN AI Cost Reduction | ~₹12 crore over 3 years | 10+ tool deployments across Finance, HR, Legal, Sales, Production workflows |
| Curve Games New Releases | From Q2FY27 | >60% of development investment allocated to new signings |
| Smaaash 2.0 Launch | Under development | Anchored in social, competitive, immersive, technology-led group experiences |
| Illustrative Consolidated Scale | ~₹947 cr revenue, ~₹101 cr EBITDA | Arithmetic aggregation of Q1FY27; gaming ~84% of revenue; not a forecast |
Risks & Constraints
| Risk | Context |
|---|---|
| Bluetile & BestPlay Integration Execution | USD 303 million all-cash acquisition (largest ever) with immediate consolidation from Q2FY27; risk of integration disruption, culture clash, UA spend efficiency maintenance at 85% of revenue, and achieving synergy targets across 26+ live titles on shared AI platform |
| Gaming EBITDA Margin Compression | Gaming EBITDA declined 9% YoY despite 14% revenue growth; margin fell ~500 bps to 19.5% as UA spend scaled aggressively across Fusebox, Kiddopia, Bluetile/BestPlay; sustainability of unit economics at higher UA intensity unproven |
| Associate Losses & Impairment Drag | Share of loss from associates widened to ₹62 crore (vs ₹24 crore YoY) primarily from NODWIN; ₹22 crore impairment loss in quarter; continued associate losses could weigh on consolidated PAT despite operating profitability |
| NODWIN Deconsolidation Volatility | Reported revenue -14% YoY masks 9% comparable growth; NODWIN's quarterly IP shifts (PUBG Mobile IP moved Q1→Q2, NH7 license model, Comic Con MG deals ended) create earnings unpredictability; 30% organic growth target assumes successful M&A restart |
| Key Person Dependency | Founder Nitish Mittersain transitioning to strategic role; new CEO Raymond Stauffer (Bluetile founder) untested at Nazara Group level; Maxime Loppin new to Bluetile/BestPlay CEO role; leadership transition during largest acquisition integration |
| Capital Allocation Discipline | USD 303 million outflow (₹89M immediate, ₹214M by Apr 2027) on fixed-price deal eliminates earnout downside protection; Investment Committee oversight new and untested; follow-on integration capex requirements uncertain |
Q&A Highlights
Transcript is an investor presentation document; no Q&A session transcript provided for summary.
Key Takeaway
Nazara delivered Q1FY27 consolidated revenue of ₹429 crore