Nazara Technologies names Raymond Stauffer CEO as Q1 swings to loss and RMG exit reshapes business

MUMBAI: Pressing restart without pausing the game, Nazara Technologies has unveiled a sweeping leadership overhaul alongside strategic investments, acquisition restructuring and a complete financial exit from its real-money gaming exposure, even as it slipped into the red during the first quarter of FY27.

The company’s board approved the resignation of chief executive officer Nitish Mittersain, effective September 1, 2026. Mittersain will continue as managing director and key managerial personnel, focusing on long-term strategy, portfolio management, strategic partnerships and stakeholder engagement.

Succeeding him as chief executive officer will be Raymond Albaladejo Stauffer, whose appointment will take effect from September 1, subject to regulatory, governmental, foreign exchange and immigration approvals.

The board also recommended the appointment of Con Anthony Conlon as an additional independent director for a five-year term, subject to shareholder approval. Meanwhile, independent director Arun Vijaykumar Gupta resigned with effect from August 4, citing increased professional commitments.

For the quarter ended June 30, 2026, Nazara reported consolidated revenue from operations of Rs 428.77 crore, compared with Rs 397.78 crore in the preceding quarter and Rs 498.77 crore in the year-ago period. The gaming business remained the largest contributor, generating revenue of Rs 274.98 crore and a segment profit of Rs 7.76 crore. The esports division reported revenue of Rs 27.79 crore and a marginal segment loss, while the ad tech business posted revenue of Rs 126.08 crore and also reported a small operating loss.

The company reported a consolidated loss before tax of Rs 80.23 crore, reflecting continued pressure from associate losses and impairment charges. On a standalone basis, Nazara posted revenue from operations of Rs 17.39 crore and total income of Rs 38.45 crore but recorded a net loss of Rs 63.03 crore after recognising impairment losses of Rs 69.61 crore.

Nazara also confirmed that it has fully exited its financial exposure to the real-money gaming segment. Following the implementation of the Promotion and Regulation of Online Gaming Act, 2025, which prohibited online money games from October 1, 2025, operations at associate Moonshine Technologies Private Limited and subsidiary Halaplay Technologies Private Limited ceased.

During the quarter, the company recognised its share of losses from Moonshine and fully impaired its remaining investment following the Supreme Court of India ruling on the 28 per cent GST levy on gross betting value, eliminating its remaining financial exposure to the business.

However, regulatory proceedings continue against several gaming companies. According to the filing, the Directorate General of GST Intelligence has issued GST show cause notices to Halaplay Technologies, Openplay Technologies, SBN Gaming Network, Baazi Networks and Bazi Games involving cumulative tax demands running into thousands of crores of rupees.

Even as it exited one business segment, Nazara continued deploying capital into growth opportunities. The board approved an investment of up to Rs 9.9 crore in Funky Monkeys Play Center Private Limited, increasing its stake to about 68.1 per cent on a fully diluted basis.

It also sanctioned an unsecured loan of up to Rs 24 crore to wholly owned subsidiary Smaaash Entertainment Private Limited to support its operations and expansion.

Internationally, subsidiary Nazara Technologies FZ LLC executed a convertible promissory note to invest $500,000 in nCore Games, Inc.. Separately, the company restructured its proposed acquisition of Spain-based Bluetile Games S.L. and Bestplay Systems S.L. through Nazara Technologies UK Limited by removing the stock consideration component and simplifying the transaction structure.

Nazara also expanded its equity base after allotting 9 lakh equity shares following the conversion of preferential warrants by Founders Collective Fund. The conversion increased the company’s paid-up equity share capital to Rs 76.94 crore.

The board’s decisions reflect a broader effort to streamline leadership, strengthen the balance sheet and redirect capital towards core gaming and entertainment businesses, while drawing a line under its exposure to the regulatory uncertainties surrounding real-money gaming.