Nazara returns to profit in Q2 FY27 — consolidated PAT ₹35.4 Cr, revenue up 53% YoY on Bluetile

Nazara's consolidated revenue came in at ₹803.15 Cr, up 52.6% YoY (₹526.46 Cr) and 87.3% QoQ (₹428.77 Cr), with consolidated PAT swinging to ₹35.36 Cr from a ₹82.47 Cr loss last quarter and a ₹33.93 Cr loss a year ago — a genuine turnaround on both axes. EPS came in at ₹0.95 against ₹(2.16) in Q1 FY27. Against our pre-result preview (consolidated revenue ~₹400-420 Cr, EBITDA ~₹50-60 Cr, gaming segment revenue ~₹280-300 Cr), the print beat comprehensively — revenue nearly double the top end, EBITDA of ~₹112.9 Cr more than double the expected band, gaming segment revenue of ₹656.4 Cr over twice the expected range. A large share of that gap, however, is inorganic: the company's own note 4 states current-period results include Bluetile Games and Bestplay Systems (acquired for ~$303 Mn, consolidated from 1 August 2026) and are "not comparable with the comparative period," with the purchase price allocation still provisional. Margins expanded sharply. OPM (EBITDA/revenue) rose to ~14.1% from 5.75% in Q1 FY27 (EBITDA ₹112.9 Cr vs ₹24.7 Cr), while NPM turned positive at 4.3% from -18.85% QoQ and -2.08% YoY. Gaming remains the core driver — segment revenue ₹656.4 Cr (vs ₹275.0 Cr QoQ, ₹295.9 Cr YoY) and segment profit ₹58.8 Cr (vs ₹7.8 Cr QoQ, ₹16.2 Cr YoY) — inflated by the new consolidation. Ad tech is the soft spot, with segment result worsening to -₹4.8 Cr from -₹1.8 Cr in Q1 FY27. A ₹23.5 Cr share-of-loss from associates (down from -₹62.4 Cr QoQ and -₹223.7 Cr YoY) continued to drag PBT, tied to the Moonshine/Openplay/Nodwin-linked real-money-gaming entities hit by the 2025 online gaming ban. Separately, the year-ago base itself was distorted: Sep-2025 other income carried a ~₹1,098 Cr fair-value gain on the Nodwin deconsolidation, largely offset by a ₹914.70 Cr exceptional write-down on Halaplay/Moonshine — netting to roughly ₹184 Cr of one-off benefit inside that quarter's reported ₹33.93 Cr loss. Adjusting both sides out, the underlying year-ago loss was closer to ₹217-220 Cr, making this quarter's swing to profit sharper than the headline YoY delta implies. On guidance: the August 2026 concall gave no formal FY27 revenue/EBITDA target but flagged three specific markers — Bluetile consolidation from Q2 FY27 (confirmed, effective 1 August 2026), a ₹50 Cr offline capex commitment (not separately disclosed in this filing), and a SMAAASH 2.0 launch targeted for Q4 FY27 (not yet due). Management's tone then was cautious with a cautiously-optimistic short-term outlook; this quarter's return to profit is broadly consistent with that read, though it leans heavily on the acquisition rather than a clean organic recovery. The quarter also sits alongside a leadership reset — CFO Arun Agrawal appointed 12 October 2026 — and a ₹730.9 Cr preferential allotment (2,38,81,711 shares at ₹306) approved the same day, alongside the previously-flagged ₹743 Cr UK investment, aimed at funding the UK scale-up and further M&A. No management press release was available in our records to cross-check company framing against these numbers. Standalone (secondary) tells a flatter story: PAT of just ₹0.37 Cr on total income of ₹38.83 Cr, essentially break-even, since the holding company's own books consist largely of other income/investment income with minimal operating revenue (₹18.73 Cr). The group-level turnaround sits entirely at the consolidated level, concentrated in the newly acquired gaming subsidiaries.