Nazara Technologies (NAZARA) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached INR 498.8 crores, up 99% year-on-year, with EBITDA at INR 47.4 crores, up 90% year-on-year, and PAT from continuing operations at INR 36.4 crores; overall PAT rose 118% year-on-year to INR 51.3 crores.

• Strong performance attributed to IP-led gaming strategy, disciplined cost management, and operational excellence.

• Leadership strengthened with key appointments, including an Executive Director, and board approval for a share split and bonus issue.

• Initiated deconsolidation of Nodwin Gaming to sharpen focus on core gaming, while Nodwin accelerates esports ambitions independently.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2025.

Financial highlights

• Revenue from operations rose 99.4% YoY to INR 498.8 crore; EBITDA margin at 9.5% (up 90.4% YoY); PAT before associates up 150.2% YoY to INR 60.7 crore.

• Gaming segment revenue grew 160% year-on-year to INR 240.9 crores, with EBITDA up 311% and a 24.4% EBITDA margin.

• Other segment revenue up 65% YoY to INR 260.2 crores, though with negative EBITDA margin.

• Curve Games contributed INR 54.6 crores in revenue and INR 20.7 crores in EBITDA, margin 38%.

• Fusebox Games revenue grew 49% year-on-year to INR 73 crores, with a 14.3% EBITDA margin.

• Kiddopia posted INR 45.4 crores in revenue and INR 8.5 crores in EBITDA, with an 18.6% margin.

• Animal Jam revenue increased 12.1% to INR 26.4 crores, EBITDA up 55% to INR 5.9 crores, margin 22.3%.

• Smaaash delivered INR 8.1 crores in revenue and INR 3.3 crores in EBITDA for the consolidation period, margin 41.3%.

• Funky Monkeys revenue grew 6.5% year-on-year to INR 4.9 crores, EBITDA at INR 2.3 crores, margin 47.7%.

• PokerBaazi net revenue was INR 191.8 crores, with an EBITDA loss due to front-loaded marketing costs.

• NODWIN posted 49% revenue growth to INR 106.1 crores, with an EBITDA loss.

• Sportskeeda revenue dropped 21% year-on-year to INR 48.1 crores, EBITDA at INR 2.6 crores.

• Datawrkz reported 313% revenue growth and 283% EBITDA growth, with INR 106.1 crores in revenue and INR 2.6 crores in EBITDA.

• Other income included a INR 66 crore gain from the Stan investment.

Outlook and guidance

• Pipeline of new gaming titles and content launches across genres and geographies expected to drive future growth.

• Focus on scaling high-quality gaming IPs, global expansion, and operational discipline to invest in upcoming opportunities.

• Management targets INR 300 crore EBITDA by FY27 and is on track to achieve or surpass it.

• PokerBaazi not expected to be profitable in FY26; profitability targeted for FY27, depending on market conditions.

• Board approved sub-division and bonus issue to enhance liquidity and retail participation, with completion expected by October 10, 2025.