Nazara Tech slips into Rs 82.5 Cr loss in Q1; Nitish Mittersain steps down as CEO
Nazara Tech Board is scheduled to meet on August 6, 2026 to consider raising additional funds through the issuance of equity shares or other securities on a preferential basis.
Gaming and sports media platform Nazara Technologies has reported a consolidated net loss of Rs 82.47 crore for the first quarter ended 30 June.
The consolidated net loss was primarily driven by a share of loss from associates amounting to Rs 62.41 crore and an impairment loss of Rs 21.81 crore related to its balance investment in associates that were in the Real Money Gaming business.
The company had posted a consolidated net profit of Rs 51.34 crore in the corresponding quarter of the previous fiscal.
Nazara’s revenue from operations stood at Rs 428.77 crore in Q1 FY27, a decline of 14% from Rs 498.77 crore in the year ago period. This reported decline is largely attributed to the deconsolidation of NODWIN Gaming starting from August 2025; excluding this impact, comparable consolidated revenue actually grew by approximately 9% year on year.
On a sequential basis, revenue grew by 7.8% from Rs 397.78 crore in the preceding quarter.
Despite the overall loss, the core gaming segment remained a strong driver, with revenue increasing 14% year on year to Rs 275 crore while maintaining a healthy EBITDA margin of 19.5%. Within this portfolio, key intellectual properties showed significant growth: Kiddopia revenue grew 19% year on year, Fusebox increased 12% to Rs 82 crore, and Animal Jam grew by 11%.
The company announced that Nitish Mittersain has tendered his resignation from the office of Chief Executive Officer (CEO) with effect from September 1, 2026. Mittersain will continue to serve as the Managing Director of the firm, where he will focus on long term strategy, portfolio direction, strategic partnerships, and key stakeholder relationships.
The company’s board has approved the appointment of Raymond Albaladejo Stauffer as the new CEO to succeed Mittersain. Stauffer, a former Google executive, was the founder of Bluetile Games and Bestplay Systems.
He brings a track record of building a portfolio of 17 live casual and social games with nearly 375 million lifetime downloads and 22 million monthly active users. In 2025, his founded businesses generated $153.6 million in revenue and $27.7 million in EBITDA, representing an 18% margin, with no external capital dependency.
Further board changes include the appointment of Con Anthony Conlon as an Additional Director in the Independent category for a five year term. Meanwhile, Arun Vijaykumar Gupta resigned as an Independent Director effective August 4, 2026, due to increased professional commitments.
In March 2026, Nazara announced that its UK based subsidiary would acquire a 50% controlling stake in Spanish social gaming platforms Bluetile Games and BestPlay Systems for $100.3 million. Nazara's board has now revised terms to acquire 100% of the share capital of both entities for an aggregate fixed cash consideration of $303.02 million, which is approximately Rs 2,909 crore.
This move to 100% ownership was intended to eliminate future valuation uncertainty, secure full economics for shareholders from day one, and allow for immediate operational integration. The consideration will be paid in four tranches: an initial $89 million at closing, followed by instalments scheduled for October 31, 2026, December 31, 2026, and April 1, 2027. These Spanish businesses are high performing, having reported Rs 518 crore of revenue and Rs 55 crore of EBITDA in Q1 FY27 alone.
Furthermore, the board cleared an additional investment of up to Rs 9.9 crore in its subsidiary, Funky Monkeys Play Center, to increase its stake to 68.1%. This subsidiary currently operates 21 centres across India and plans to use the new investment to expand into Tier 2 and smaller cities. Its revenue grew 58% year on year this quarter, reaching Rs 8 crore.
The board also approved an unsecured loan of up to Rs 24 crore for its wholly owned subsidiary, Smaaash Entertainment, to support the development of Smaaash 2.0, which will focus on social, competitive, and technology-led immersive experiences.
Additionally, Nazara’s subsidiary, Nazara Technologies FZ LLC, recently invested $500,000, approximately Rs 4.76 crore, in nCore Games, Inc. through a Convertible Promissory Note.
Beyond these results, the Board is scheduled to meet on August 6, 2026 to consider raising additional funds through the issuance of equity shares or other securities on a preferential basis.
(With inputs from PTI.)