Nazara Technologies Limited (NAZARA)
🎯 Key Takeaways
- Nazara Technologies is in a high-growth, reinvestment phase driven by strategic acquisitions and global expansion in gaming, transitioning from early-stage profitability to scalable margins. Despite a recent 66% YoY EBITDA surge and improved operating leverage, the company remains in a phase of aggressive platform consolidation, with profitability still recovering from regulatory impairments and GST liabilities.
- Revenue grew 67.6% QoQ to ₹535 in Q3FY25.
- ⚠️ 1) Regulatory exposure from the Online Gaming Act, 2025, which triggered a ₹98,894 lakh impairment and ongoing GST liabilities at 18% rate. 2) High va
📖 The Story
Nazara Technologies is in a high-growth, reinvestment phase driven by strategic acquisitions and global expansion in gaming, transitioning from early-stage profitability to scalable margins. Despite a recent 66% YoY EBITDA surge and improved operating leverage, the company remains in a phase of aggressive platform consolidation, with profitability still recovering from regulatory impairments and GST liabilities.
📰 What's Happening
In FY26, Nazara reported record EBITDA of ₹255 crores (+66% YoY) with 19.5% Q4 margins, fueled by 90% of EBITDA from gaming and the acquisition of 17 new IPs via Bluetile and BestPlay. The company completed its first full year under expanded leadership, including new directors Mithun Sacheti and Muraarie Rajan, and appointed MSKC & Associates as auditor with an unmodified opinion. It also acquired a 7.62% stake in Rusk Media and issued 1.82 million warrants at ₹260 each. Management highlighted AI-enabled infrastructure and global expansion as next-phase growth levers.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY23 | Q1FY24 | Q2FY24 | Q3FY24 | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 289 | 254 | 297 | 320 | 266 | 250 | 319 | 535 |
| Operating Profit | 35 | 45 | 39 | 54 | 39 | 50 | 50 | 59 |
| OPM % | 9.4% | 13.0% | 9.0% | 11.3% | 1.3% | 10.0% | 7.9% | 6.9% |
| Net Profit | 9 | 21 | 24 | 30 | 0 | 24 | 16 | 14 |
| EPS | ₹0.01 | ₹2.95 | ₹2.99 | ₹3.54 | ₹-1.15 | ₹2.96 | ₹2.87 | ₹3.84 |
Revenue grew from ₹250 crores in Q1FY25 to ₹535 crores in Q3FY25, with operating profit margin peaking at 13% before declining to 6.9% in Q3FY25, indicating rising cost pressures despite top-line expansion. EBITDA margin improved 970 bps YoY to 19.5% in Q4FY26, reflecting scale benefits from acquisitions and operational efficiency. Net profit turned positive after a ₹98,894 lakh impairment in FY26, supported by 81% growth in pre-tax operating cash flow to ₹213 crores, driven by strong OCF conversion (84%).
🔮 Management Outlook & What's Next
Management expressed confidence in scaling FY27 revenue and EBITDA through consolidation of newly acquired IPs and continued global expansion, particularly in mobile gaming. They emphasized the role of AI-enabled infrastructure in enhancing scalability and margins, though no specific financial targets or timelines were disclosed. No formal guidance on profitability or capex was provided, but strategic focus remains on leveraging scale and international markets.
Extracted from official company announcements. Not StockFin.ai's opinion.
⚖️ Peer Comparison — Entertainment
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| Prime Focus Limited | 22,411 | -78.0 | — | — | — |
| Sun TV Network Limited | 21,089 | 12.1 | — | — | — |
| Nazara Technologies Limited | 11,112 | 206.9 | — | — | — |
| PVR INOX Limited | 9,917 | -34.8 | — | — | — |
| Zee Entertainment Enterprises Limited | 8,485 | 16.9 | — | — | — |
| Tips Music Limited | 8,266 | 38.1 | — | — | — |
| Saregama India Limited | 8,016 | 40.4 | — | — | — |
| Network18 Media & Investments Limited | 4,968 | -2.7 | — | — | — |
| Hathway Cable & Datacom Limited | 1,814 | 19.3 | — | — | — |
| Media Matrix Worldwide Limited | 1,667 | — | — | — | — |
⚠️ Risk Factors
1) Regulatory exposure from the Online Gaming Act, 2025, which triggered a ₹98,894 lakh impairment and ongoing GST liabilities at 18% rate. 2) High valuation multiple (P/E: 206.9) remains vulnerable to margin compression or growth slowdown. 3) Heavy reliance on gaming (90% of EBITDA) increases concentration risk. 4) Integration risks from recent acquisitions (Bluetile, BestPlay, Rusk Media) could delay expected synergies.
📋 Recent Filings
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Announcement 22 June 2026Nazara Technologies announced via regulatory filing on June 22, 2026 that it will host a virtual investor and analyst meeting on June 26, 2026 at 1:00...
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Announcement 16 June 2026Nazara Technologies announced an extended timeline to infuse up to USD 100.3 million into its UK subsidiary Nazara Technologies UK Limited by August 1...
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Announcement 12 June 2026Nazara Technologies announced its participation in virtual investor and analyst meetings on June 17 and 18, 2026, to discuss publicly available inform...
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Announcement 8 June 2026Nazara Technologies announced its participation in investor and analyst meetings scheduled for June 11, 2026, including one-on-one sessions with Axis ...
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🔴 Corporate Action 5 June 2026Nazara Technologies approved the allotment of 1,82,31,000 warrants convertible into equity shares at INR 260 each via private placement, following boa...
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🔴 Corporate Action 28 May 2026Nazara Technologies announced on May 28, 2026 that it acquired 1,278 Pre Series C Compulsorily Convertible Preference Shares in Rusk Media Private Lim...
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🔴 Financial Results 13 May 2026Nazara Technologies Limited announced the audio recording of its Q4 and FY2026 results earnings call conducted on May 13, 2026 at 9:00 a.m. IST, avail...
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🔴 Financial Results 12 May 2026Nazara Technologies reported FY26 revenue of **₹1,829 crores** (+13% YoY) and EBITDA of **₹255 crores** (+66% YoY), with Q4 EBITDA margins reaching 19...
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🟡 Board Meeting 12 May 2026Nazara Technologies reported audited FY2026 results showing a net profit of **₹9,594 lakhs** after a **₹98,894 lakhs** impairment loss from the 2025 O...
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🔴 Financial Results 12 May 2026Nazara Technologies Limited announced on May 12, 2026, the appointment of MSKC & Associates LLP as its new auditor, confirming an unmodified opinion o...
🧠 Analyst's Read
Nazara is transitioning from a high-growth startup to a scaled gaming platform with improving margins, but profitability remains volatile due to regulatory and integration challenges. Investors should monitor FY27 margin trajectory, GST resolution progress, and execution of acquisition synergies as key near-term catalysts.
Based on filing content and financial data. Not a recommendation.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-04.
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