Target: ₹400

CMP: ₹266.95

Nazara Technologies is increasingly transitioning into a globally diversified, gaming-first platform with improving earnings quality, strong cash conversion and rising operating leverage. Following portfolio rationalisation over the last two quarters, the business now operates on a structurally cleaner and higher-margin base, with gaming accounting for about 90 per cent of FY26 EBITDA.

Looking ahead, the proposed Bluetile and BestPlay acquisition (Nazara’s largest M&A to date) materially strengthens FY27 growth visibility, adding a scaled up casual gaming portfolio, AI-native development capabilities and about 22 million MAUs. Combined with improving profitability across core gaming IPs, scaling up narrative franchises at Fusebox and Smaaash 2.0 rollout, we see scope for sustained revenue acceleration in FY27 & FY28.

Further, FY26 also marks an important transition in operating structure with Centres of Excellence across User Acquisition, Data Analytics, AI, Growth and Product increasingly embedded across the gaming lifecycle. These capabilities are driving improving monetisation, lower acquisition cost and stronger player retention across portfolio companies.

We value Nazara on a SOTP basis arriving at a target price of ₹400 and retain our Buy rating. We believe current valuation do not fully capture the platform’s improving profitability profile and longterm compounding potential.

Published on May 13, 2026