Nazara Technologies Ltd Q4 FY2026 Concall Summary

Key Takeaways

• Pivotal year, compounding leverage: FY26 EBITDA grew 66% to INR 255 crores, the highest ever, with Q4 margins reaching 19.5%. Management says operating leverage is real and now starting to compound.
• Gaming now dominates profit pool: Gaming's share of EBITDA jumped from 56% in FY25 to 90% in FY26, driven by a deliberate pivot toward high-margin, globally diversified gaming platforms.
• Bluetile acquisition doubles pro forma EBITDA: The largest deal to date, combining AI-native development and a rewarded engagement network, is expected to at least double combined EBITDA before organic growth. Consolidation begins Q1 FY27.
• NODWIN IPO and non-core monetisation on the table: NODWIN is preparing to raise \$100M–\$200M and list independently; Nazara is also evaluating divestment of Sportskeeda or the AdTech business, with actions expected in FY27–FY28.
• What to watch next quarter: Whether Bluetile consolidates on schedule, the pace of new PC/console title signings and releases, and any concrete steps toward non-core divestment or the NODWIN IPO.

The Bluetile & BestPlay Acquisition

• Scale and capability leap: The acquisition, completed pending Spanish FDI approval expected in 3–4 weeks, significantly expands Nazara's casual gaming scale and adds AI-native development capabilities plus a rewarded engagement network. Consolidation is expected from Q1 FY27.
• Pro forma EBITDA impact: Combining Nazara and Bluetile, EBITDA would at least double, with organic growth layered on top of that base. Management declined to give specific FY27 guidance but expressed strong bullishness.
• AI capabilities to be extended: Bluetile's AI expertise, applied across creative marketing, marketing operations, product development, technical development, ad monetisation and data segmentation via LLMs and reinforcement learning, is expected to be extended to many other Nazara studios in FY27.

Mittersain: "I do believe our operating leverage is real, and it is now starting to compound."

Gaming Portfolio: The Core Engine

PC & Console Publishing

• Margin-rich with a release pipeline restart: The segment delivered a 39% EBITDA margin in FY26. Human Fall Flat crossed 5.8 crore lifetime units. Under previous ownership, Curve Games had not been signing many titles for two years; that has now changed, with at least six new releases expected this year, including Wax Heads (already launched), Sovereign Tower and Dragon Shelter.
• Margin target on new signings: Management expects Curve Games margins sustained above 30%–35% and targets 50% on any game signed.

Kiddopia & Animal Jam

• Kiddopia recovery sustained: Subscriber growth returned in Q3 and continued in Q4, with improving unit economics. The turnaround was driven by the Centers of Excellence strengthening the organisation, integrating four IPs over the last 12 months to improve the funnel, and better data visibility enabling faster decisions on paid efficiency.
• Animal Jam margin expansion and IP integration: Delivered meaningful margin expansion during the year. Launched its first IP integration with Mattel's Monster High property in April, with quarterly updates planned over the next six quarters. Also launching a Roblox-native experience.
• New WildWorks game: A hyper-casual game for kids and women in North America, described as "on the lines of Monopoly Go" and based on a dormant nostalgic property, is launching in Q2 FY27.

Narrative Games (Fusebox)

• New IPs launched, seasonality persists: Big Brother and Bigg Boss launched in FY26; Traitors will launch in the current fiscal year. Big Brother is expanding from one to three seasons. However, new IPs will take potentially a couple of years to meaningfully offset the seasonal Q3 dip.

Offline Gaming

• Turned profitable: Smaaash and Funky Monkeys both delivered profitability in FY26. Funky Monkeys is expanding its footprint and Smaaash 2.0 format is in progress.

Amis: "we are releasing a new game in Q2 of FY '27. And that's a hyper-casual game for kids and women here, principally in North America, where we are based kind of on the lines of Monopoly Go, taking a page out of their playbook and experiencing a nostalgic property that we are bringing to life again that's been dormant for a while."

NODWIN: IPO Path and Turnaround

• EBITDA turnaround delivered: NODWIN moved from a loss of INR 14 crores in FY25 to a profit of INR 21 crores in FY26, while scaling youth media and live events globally.
• IPO preparation underway: NODWIN is looking to raise between \$100 million and \$200 million, a mix of primary and secondary, and prepare for an IPO "as soon as possible." The priority is to do it right, with management noting they do not get multiple chances.
• Growth vectors: Expansion through the Global South, from the Philippines to Mexico, with empty spaces in Southeast Asia and Latin America being explored. The business is split into Content (grassroots discovery, 5%–10% organic growth, profitable) and Live (super-fandom manifestation, more profitable).
• Associate losses a drag: Losses were driven by Moonshine and a INR 50 crore goodwill write-off on OML assets, as NH7 Weekender did not deliver projected cash flows, though the IP itself is now bouncing back.

Rathee: "NODWIN is looking both to raise funds between \$100 million to \$200 million independently which should be a mixture of primary and secondary, and then also prepare for an IPO as soon as possible. But while I say as soon as possible, the priority is to do it right. I don't think we get multiple chances to do this."

AdTech & Sportskeeda: Pivot and Monetisation

• AdTech pivot underway: Full-year revenue and EBITDA both grew 32% YoY, but Q4 saw a decline driven by a conscious shift toward the tech-driven DSP business (Vizibl) and reduced focus on traditional, declining AdTech lines. Space & Time's Q4 revenue decline was anticipated due to UK new homes market challenges and reduced discretionary marketing spend. Full-year results finished ahead of AOP with significant EBITDA outperformance.
• Sportskeeda profitable despite traffic headwinds: Remained profitable despite softer traffic following Google Core updates, supported by cost discipline and improving performance across new properties like Pro Football Network and PrimeTimer. Recovery in traffic has not yet materialised; focus is on retaining EBITDA, with margins expected to increase in FY27 on a potentially smaller base.
• Non-core monetisation on the horizon: Nazara is evaluating the potential monetisation of NODWIN, Sportskeeda, or the AdTech business. Management is not in a hurry but sees potential to unlock value and redeploy it into core gaming, with actions expected in FY27 and FY28.

Mittersain: "we will look at potentially monetizing non-core businesses for us. This could be NODWIN, it could be Sportskeeda, or it could be the adtech business in due course. We are not in any hurry, but we definitely see the potential to unlock value and redeploy it in our core gaming business."

AI & Centers of Excellence

• COEs beginning to deliver: Invested in over the last 18 months and accelerated in FY26, the Centers of Excellence are led by senior people with in-depth experience and are expected to show clear results in FY27. Kiddopia is already benefiting, and Animal Jam is leveraging COEs in data analytics and user acquisition.
• AI applied across the portfolio: AI is being used across studios in development, user acquisition, data analytics and user engagement. A new AI chat moderation tool from Norwegian company Aiba is being introduced for kids' platforms.
• Margin expansion levers: AI is delivering more content to existing user bases at the same cost. Management also expects platform fees from Google and Apple, currently at 30%, to come down over time, providing a structural tailwind.

Guidance & Commitments

Key Metrics