Nazara Technologies (NAZARA) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a pivotal year with revenue of INR 1,829 crore, up 13% year-over-year, and EBITDA of INR 255 crore, up 66%, with Q4 EBITDA margin at 19.5% and strong cash generation.

• Gaming's contribution to EBITDA rose from 56% to 90% year-over-year, reflecting a strategic focus on high-margin, globally diversified gaming across mobile, PC, console, and offline segments.

• Major acquisitions, notably Bluetile and BestPlay, expanded casual gaming scale and AI-native capabilities, with Bluetile consolidation expected from FY 2027.

• Board approved audited consolidated and standalone financial results for FY26, with unmodified auditor opinions and major board changes reflecting ongoing institutionalization.

• Withdrawal of the amalgamation scheme with Paper Boat Apps Private Limited due to revised restructuring plans.

Financial highlights

• FY 2026 revenue grew 13% year-over-year to INR 1,829 crore; EBITDA rose 66% to INR 255 crore, with margin expanding to 13.9%.

• Q4 FY 2026 revenue was INR 398 crore, EBITDA INR 78 crore, and EBITDA margin 19.5%.

• Gaming revenue for FY 2026 surged 107% year-over-year to INR 1,072 crore; gaming EBITDA up 157% to INR 265 crore (24.7% margin).

• Consolidated net profit for FY26 was ₹8,194 lakh, despite a significant exceptional impairment loss.

• Cash balance at year-end was INR 735 crore; pre-tax operating cash flow grew 81% year-over-year to INR 213 crore.

Outlook and guidance

• Management expects continued acceleration in revenue and EBITDA growth in FY 2027, driven by operating leverage, COE initiatives, and AI adoption.

• Bluetile's CY 2025 revenue was INR 1,402 crore with INR 254 crore EBITDA; post-consolidation, EBITDA is expected to at least double on a pro forma basis.

• Continued expansion of offline gaming centers and launch of Smaaash 2.0 planned for FY27.

• Divestment of non-core businesses (e.g., NODWIN, Sportskeeda, AdTech) is under evaluation for FY 2027–2028 to redeploy capital into core gaming.

• Announced plans to acquire controlling stakes in Bluetile and BestPlay for $100.3 million, and further investments in nCore Games and Nazara UK.