Why Nazara Technologies shares rallied 18% today - Latest target prices

Shares of Nazara Technologies Ltd rose 18 per cent during the trading session on Friday, May 15 after CNBC-TV18 reported that 4.9 per cent equity in the company changed hands through large block deals. Its report said Zerodha's co-founder Nikhil Kamath and existing promoter Axana Estates were among the likely buyers in the transactions.

Shares of Nazara Technologies Ltd zoomed 17.93 per cent to Rs 314.05 on Friday, commanding a total market capitalization more than Rs 11,500 crore. The stock has rallied more than 45 per cent from its 52-week low at Rs 216, hit nearly two months ago. However, the stock is still 14 per cent below its 52-week high at Rs 362.50, hit in August 2025.

CNBC-TV18 reported that Nazara founder Nitish Mittersain was the likely seller in the block deals. It has also been in focus in recent months for its international expansion plans. To recall the gaming and sports media firm said its UK-based subsidiary would acquire a 50 per cent controlling stake in Spanish social gaming platforms Bluetile Games and BestPlay Systems for $100.3 million in March.

According to the company’s regulatory filing, $59.7 million of the total cash consideration will be paid at the first close. The remaining $40.6 million will be payable within six months of the first close. The transaction also includes performance-linked earn-outs estimated at $98.2 million.

Nazara Technologies reported a more than 13.5 times to Rs 55.7 crore, but the revenue dropped 23 per cent YoY to Rs 398 crore for the March 2026 quarter. Ebitda for the quarter increased 114 per cent YOY to Rs 74 crore, while Ebitda margins expanded sharply by 1,190 basis points to 18.6 per cent .

Nazara reported improving core gaming execution and stronger operating leverage in 4QFY26 offsetting weak performance in eSports and Ad-tech. While PC and console remained resilient, offline gaming was relatively softer and non-core segments continued to weigh in on reported growth with Sportskeeda remaining soft and Ad-tech declining due to pruning of lower-margin services, said JM Financial Ltd.

Ebitda stood strong with margin expanding to 19.5 per cent, driven by stronger profitability across most core gaming verticals. Management is increasingly focused on core gaming (potentially by divesting non-core segments in future), and Bluetile consolidation is expected to materially strengthen FY27 scale," it said and maintained an 'add' rating with a target price of Rs 300.

Nazara 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 90 per cent of FY26 Ebitda, said Choice Institutional Equities.

"Incremental scale from Bluetile & BestPlay, continued execution of the centre of excellence-led operating playbook and deeper monetisation across owned IPs are expected to improve earnings visibility and support durable margin expansion. Current valuation do not fully capture the platform’s improving profitability profile and long0term compounding potential," it said with a 'buy' and a target price of Rs 400.

"We believe acquisition of BT Games can be a game changer for Nazara as it lends material scale advantage without compromising on margins, said PL Capital. Performance linked earn-out structure of the transaction brings in accountability and minimizes upfront capital drain, it said.

"Led by acquisition of BT Games, we expect revenue CAGR of 47 per cent over FY26-FY28E with Ebitda margin of 16.2 per cent/ amd 6.8 per cent in FY27E and FY28E respectively. We maintain 'buy' on the stock with SoTP based target of Rs 319," PL Capital added.