Nazara Technologies (NAZARA) Q2 25/26 earnings summary

Executive summary

• H1 FY26 revenue reached INR 1,025.2 crores, up 80.2% year-on-year, with EBITDA at INR 109.4 crores, up 118.5% year-on-year; Q2 FY26 revenue was INR 526.5 crores, up 65.1%, and EBITDA at INR 62 crores, up 146.4% year-on-year.

• Core gaming revenues rose 159% year-on-year in H1 FY26, with EBITDA up 253% year-on-year, driven by recurring seasons, LiveOps, and global distribution.

• PAT for Q2 FY26 was negative INR 33.9 crores due to the real money gaming ban and impairment of Moonshine Technologies; H1 PAT was INR 17.4 crores.

• Over 90% of gaming revenue now comes from international markets, with a focus on the U.S. and U.K.

• Ceased control of Nodwin Gaming, now classified as an associate, resulting in a significant gain on remeasurement.

Financial highlights

• Core gaming segment revenue grew 159% year-on-year in H1 FY26, with EBITDA up 253% and margin at 23.2%.

• AdTech revenue in Q2 FY26 increased 501% year-on-year, with EBITDA up 289%.

• Offline gaming (Smaaash and Funky Monkeys) delivered INR 12 crores EBITDA in H1 FY26 at a 27.5% margin.

• Net cash position of INR 670 crores as of Sep 30, 2025.

• Exceptional impairment loss of INR 914.7 crores on Moonshine Technologies due to regulatory changes.

Outlook and guidance

• Core gaming business is targeting 20%-25% year-on-year growth and EBITDA margin in the same range.

• Focus on building and scaling long-term gaming franchises and expanding global presence.

• Continued investment in IP, LiveOps, and platform expansion to drive recurring revenue and operating leverage.

• Kiddopia and Sportskeeda are expected to recover, with positive trends anticipated in Q4.

• Ongoing focus on content, IP monetization, and expansion in gaming and media segments.