Shares of Nazara Technologies Ltd experienced a significant rally on Friday, May 15, climbing 18% during the trading session. The surge followed reports from CNBC-TV18 indicating that a substantial 4.9% equity stake in the gaming and sports media firm changed hands through large block deals.
Among the likely participants in these transactions, Zerodha's co-founder Nikhil Kamath and existing promoter Axana Estates were identified as potential buyers. Conversely, Nazara founder Nitish Mittersain was reported as a likely seller in the block deals.
The stock peaked at Rs 314.05 on Friday, marking a 17.93% increase and pushing the company's total market capitalization beyond Rs 11,500 crore. This rally represents a more than 45% increase from its 52-week low of Rs 216, recorded approximately two months prior. Despite the impressive climb, Nazara Technologies shares remain about 14% below their 52-week high of Rs 362.50, which was hit in August 2025.
Strategic Expansion and Financial Performance
Nazara Technologies has been actively pursuing international expansion. In March, its UK-based subsidiary announced plans to acquire a 50% controlling stake in Spanish social gaming platforms Bluetile Games and BestPlay Systems for $100.3 million. According to regulatory filings, $59.7 million of this cash consideration will be paid at the first close, with the remaining $40.6 million due within six months. The deal also includes performance-linked earn-outs estimated at $98.2 million.
For the March 2026 quarter, Nazara Technologies reported a substantial increase in profit, soaring over 13.5 times to Rs 55.7 crore. However, revenue for the same period saw a 23% year-on-year drop to Rs 398 crore. EBITDA for the quarter jumped 114% year-on-year to Rs 74 crore, with EBITDA margins expanding sharply by 1,190 basis points to 18.6%.
JM Financial Ltd noted that improving core gaming execution and stronger operating leverage in Q4 FY26 offset weaker performances in eSports and Ad-tech segments. While PC and console gaming remained resilient, offline gaming was softer, and non-core segments continued to impact overall growth, with Sportskeeda remaining soft and Ad-tech declining due to the pruning of lower-margin services.
Analyst Outlook and Target Prices
Several institutional equities firms have weighed in on Nazara Technologies' prospects:
- JM Financial Ltd maintained an 'add' rating with a target price of Rs 300, citing strong EBITDA driven by core gaming profitability and the expected material strengthening of FY27 scale from Bluetile consolidation.
- Choice Institutional Equities issued a 'buy' rating with a target price of Rs 400. They believe Nazara is transitioning into a globally diversified, gaming-first platform with improving earnings quality and strong cash conversion. They anticipate incremental scale from Bluetile & BestPlay, continued execution of its operating playbook, and deeper monetization across owned IPs will improve earnings visibility and support margin expansion.
- PL Capital also maintained a 'buy' rating with a Sum-of-the-Parts (SoTP) based target of Rs 319. They view the acquisition of Bluetile Games as a potential game-changer, providing material scale without compromising margins. They project a revenue CAGR of 47% over FY26-FY28E, with EBITDA margins of 16.2% and 6.8% in FY27E and FY28E respectively, attributing this growth primarily to the acquisition.
These analyst perspectives underscore a belief in Nazara's strategic pivot towards core gaming and its potential for long-term growth and improved profitability, despite some short-term revenue fluctuations in specific segments.