Nazara Technologies (NAZARA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue was INR 406 crores, down 24.1% year-over-year due to NODWIN Esports deconsolidation, but EBITDA rose 29.4% to INR 67.8 crores, with margin expansion to 16.7% as focus shifted to higher-margin IP-based gaming.

• Nine-month FY26 revenue grew 29.7% year-over-year to INR 1,431.2 crores, and EBITDA increased 73% year-over-year to INR 177.2 crores, with overall margin at 12.4%.

• Disciplined execution, scalable IP launches, and platform extensions drove growth.

• Board approved unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025.

• In-principle approval for up to INR 15 crores investment in Rusk Media Private Limited and USD 500,000 in nCore Games, Inc.

Financial highlights

• Gaming segment Q3 FY26 revenue grew 66% year-over-year to INR 257 crores; EBITDA up 87% to INR 64.2 crores, with 25% margin.

• Mobile gaming revenue for nine months FY26 rose 48% year-over-year to INR 534.7 crores; EBITDA up 43% to INR 99.2 crores.

• AdTech revenue up 86% year-over-year for nine months FY26, EBITDA up 95%.

• Consolidated revenue from operations for the quarter was ₹40,597 lakhs, down from ₹52,646 lakhs in the previous quarter and ₹53,469 lakhs in the same quarter last year.

• PAT for nine months FY26 was INR 11.3 crores, down 77% year-over-year due to exceptional items.

Outlook and guidance

• Margins are expected to rise above 20% in the coming year as focus remains on core, IP-driven gaming businesses.

• Kiddopia and Fusebox Games are expected to drive growth in FY27, with new IP launches and improved user acquisition strategies.

• Offline gaming expansion continues, with 1-2 new Funky Monkeyss centers launched monthly and Smaaash 2.0 relaunch planned.

• Despite significant impairment losses, the group and standalone net worth remain strong, indicating continued financial stability.

• Nodwin aims for full-year EBITDA profitability.