Nazara reports Rs 82.47 cr Q1 loss after negative other income
Operating profit remained positive, but negative other income and depreciation pushed consolidated pre-tax profit into a Rs 80.23 cr loss.
Filed 03 Aug 2026, 22:01 IST · after market close · Nazara Technologies Ltd (NAZARA)
Key takeaways
- Nazara reported a consolidated Q1FY27 net loss of Rs 82.47 cr despite Rs 24.67 cr of operating profit, as negative other income of Rs 53.63 cr and depreciation of Rs 47.71 cr drove a Rs 80.23 cr pre-tax loss.
- The 5.75% operating margin was 7.63 percentage points below the 13.38% median for the 66 Consumer Discretionary peers that had reported.
- A -2.79% tax rate did not flatter earnings: Nazara recorded Rs 2.24 cr of tax despite its pre-tax loss, while interest expense was Rs 3.56 cr.
Price around the results
Operating profit was overwhelmed below the line
Consolidated revenue of Rs 428.77 cr and expenses of Rs 404.10 cr produced Rs 24.67 cr of operating profit, but the 5.75% operating margin left limited room for below-the-line costs. Negative other income of Rs 53.63 cr, depreciation of Rs 47.71 cr and interest of Rs 3.56 cr together pushed profit before tax to a Rs 80.23 cr loss. The resulting net loss was Rs 82.47 cr, with EPS at -Rs 2.16.
Nazara’s margin lagged the reported peer set
Nazara’s 5.75% operating margin was 7.63 percentage points below the 13.38% median among 66 reported Consumer Discretionary peers. It ranked ninth from the bottom of that peer set, placing the quarter’s operating profitability well below the sector comparison.
Tax expense added to the loss despite negative PBT
The -2.79% tax rate reflects tax expense of Rs 2.24 cr despite the Rs 80.23 cr pre-tax loss, so tax did not provide a reported earnings benefit. The results were filed after market close on 03 Aug 2026 at 22:01 IST.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹429 cr |
| Other income | ₹-54 cr |
| Expenses | ₹404 cr |
| Operating profit | ₹25 cr |
| Operating margin (%) | 5.75% |
| Interest | ₹4 cr |
| Depreciation | ₹48 cr |
| Profit before tax | ₹-80 cr |
| Tax | ₹2 cr |
| Net profit | ₹-82 cr |
| EPS (₹) | ₹-2.16 |
Operating margin of 5.75% compares with a Consumer Discretionary sector median of 13.38% across 66 peers that have reported Q1FY27.
What to watch
- Whether operating margin improves from 5.75%.
- Whether negative other income of Rs 53.63 cr recurs.
- Whether depreciation remains near Rs 47.71 cr and continues to outweigh operating profit.