Nazara Technologies Limited

Nazara Technologies reported robust Q1 FY26 results with revenues of ₹498.8 crores, marking a 99% year-on-year increase, and EBITDA of ₹47.4 crores, up 90% year-on-year. The overall PAT stood at ₹51.3 crores, reflecting a 118% year-on-year increase. The core gaming business was a significant driver, delivering a healthy 24.4% EBITDA margin and contributing to the strong topline growth and disciplined cost management.

The company strategically acquired 100% equity of Curve Digital Entertainment for INR 247 crores in an all-cash deal, which contributed INR 54.6 crores in revenue and INR 20.7 crores in EBITDA in Q1 FY26. Fusebox Games saw its revenue grow 49% year-on-year to INR 73 crores, with an EBITDA of INR 10.4 crores. The acquisition of Curve Games also diversifies Nazara's platform exposure to PC and console gaming, reducing dependence on mobile platforms.

PokerBaazi, accounted as an associate, reported a net revenue of INR 191.8 crores but an EBITDA loss of INR 73.9 crores in Q1 FY26. This loss was attributed to front-loaded marketing costs, including INR 85 crores for IPL and INR 25 crores for Shark Tank campaigns, aimed at driving user engagement and market share. Sportskeeda experienced a 21% year-on-year revenue drop to INR 48.1 crores and an EBITDA of INR 5.4 crores, primarily due to a Google core update impacting US organic traffic.

Nazara completed the acquisition of Smaaash, which contributed INR 8.1 crores in revenue and INR 3.3 crores in EBITDA from June 6th. The strategy for Smaaash involves stabilizing existing centers and reimagining 'Smaaash 2.0' for aggressive expansion in FY27. Kiddopia, after a period of subscriber stabilization at 227K, is showing positive KPIs, and management anticipates a return to growth within the next one or two quarters, driven by disciplined user acquisition and IP introduction.

Nazara proposed the deconsolidation of Nodwin Gaming, reclassifying it as an associate, to sharpen its focus on core gaming while allowing Nodwin to pursue esports ambitions independently. Nodwin reported 49% year-on-year revenue growth but an EBITDA loss of INR 11 crores in Q1 FY26. The leadership team was also strengthened with the appointment of Mr. Rohit Sharma as Executive Director, bringing over 25 years of gaming and digital media experience to advance Nazara's IP-driven growth strategy.

The board approved two shareholder initiatives: a subdivision of one equity share of face value ₹4 into two equity shares of face value ₹2 each, and a bonus issue in the ratio of 1:1. Additionally, Nazara recorded a significant other income, largely comprising an INR 66 crore gain from its investment in STAN, a gaming community product that has attracted other marquee investors.