Skip to content

    Nazara Technologies Limited

    NAZARA
    Media, Entertainment & Publication·13 Nov 2025
    Management Summary

    Nazara Technologies reported strong H1 and Q2 FY26 results with significant revenue and EBITDA growth across most segments, driven by scaling live operations and multi-platform monetization. However, Q2 PAT was negative due to the real money gaming ban and a substantial impairment of its investment in Moonshine Technologies and Freaks4U. The company is focusing on core gaming growth, leveraging centers of excellence, and expanding its D2C network, while navigating challenges in specific portfolio companies.

    Highlights

    5

    • H1 FY26 Revenue grew to ₹1025.2 crores, an 80.2% increase year-on-year, demonstrating strong top-line performance.

    • H1 FY26 EBITDA reached ₹109.4 crores, up 118.5% YoY, indicating significant operating leverage and profitability improvement.

    • Q2 FY26 Revenue increased by 65.1% to ₹526.5 crores, while EBITDA surged by 146.4% to ₹62 crores, reflecting robust quarterly performance.

    • Operating cash flow for H1 FY26 was ₹71.5 crores (pre-tax), up 170.8% YoY, showcasing high cash conversion.

    • Core gaming segment, including mobile, PC-Console, and offline, grew 159% in revenue and 253% in EBITDA for H1 FY26, with a 23.2% EBITDA margin.

    Concerns

    3

    • Q2 FY26 PAT was negative ₹33.9 crores, primarily due to the real money gaming ban and impairment of Moonshine Technologies.

    • Nazara's share of investment in Freaks4U (totaling EUR 42 million or ₹420-430 crores) was impaired due to significant headwinds in the European market, including layoffs, AI impact, and eSports decline.

    • Absolute Sports' flagship property, Sportskeeda, was negatively impacted by a Google Core update in March, affecting organic traffic and contributing to a 13% YoY cost reduction in Q2 and a planned 40% reduction in Q3.

    What Changed2

    vs Q3 FY26

    Guidance items8 → 6 (-2)Risks discussed4 → 3 (-1)
    Key financials

    Metrics

    8

    Periods

    2

    Headline

    5
    • H1 FY26 Revenue
      ₹1,025.2 Cr
      YoY+80.2%
    • H1 FY26 EBITDA
      ₹109.4 Cr
      YoY+118.5%
    • H1 FY26 Core Gaming EBITDA Margin
      23.2%
    • H1 FY26 PAT
      ₹17.4 Cr
    • H1 FY26 Operating Cash Flow (pre-tax)
      ₹71.5 Cr
      YoY+1.7%

    Q2 FY26

    3
    • Revenue
      ₹526.5 Cr
      YoY+65.1%
    • EBITDA
      ₹62 Cr
      YoY+146.4%
    • PAT
      ₹-33.9 Cr

    Segment breakdown

    Q2 FY26 Revenue GrowthQ2 FY26 EBITDA Growth
    Core Gaming Segment1.6%2.1%
    Mobile Gaming81%95%
    Offline Gaming (Smaaash & Funky Monkeys)——
    AdTech5.0%2.9%
    Nodwin (core business)31%32%
    Absolute Sports——
    Heatmap· 2 shared metrics

    Capital allocation

    4
    high confidence
    CategoryHeadline
    M&A

    Moonshine Technologies

    divestment · integrated

    M&A

    Nodwin Gaming

    divestment · integrated

    M&A

    Freaks4U

    divestment · integrated · Consideration ₹NaN (mixed)

    Liquidity

    Cash ₹100 crores

    PokerBaazi has over INR 100 crores of cash and is evaluating multiple options for its strong poker platform.

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Core Gaming Business Growth
    20-25%
    		High
    Revenue
    Nodwin Revenue
    $1 billion
    		High
    Margin
    Core Gaming EBITDA Margin
    20-25%
    		High
    Capacity
    Funky Monkeys Centers
    100 centers
    		High
    Cost Reduction
    Absolute Sports Cost Reduction
    40%
    		High
    Subscriber Growth
    Kiddopia Subscriber Numbers
    positive growth
    		Medium

    PokerBaazi Future Strategy

    next quarter
    CurrentOver INR 100 crores cash, evaluating multiple options post-impairment.
    TargetConcrete updates on future plans and leveraging its platform/user base.

    Why it matters

    To understand the strategic direction and value realization from the remaining asset post-impairment.

    I think it's all work in progress. And hopefully💬 by next quarter, we will have more concrete updates to give on that.

    How to verify

    detailed_narrative[title='PokerBaazi Future Strategy']

    Risks & concerns

    3
    RiskSeverity

    Real Money Gaming Ban in India

    The ban directly impacted Q2 FY26 PAT, leading to impairment of Moonshine Technologies. — Management acknowledged

    high

    European Market Headwinds for Freaks4U

    Layoffs, stagnating market, AI impact, and decline of eSports in Western markets led to significant impairment of Freaks4U investment. — Management acknowledged

    high

    Google Core Update Impact on Sportskeeda

    A Google Core algorithm update in March negatively impacted Sportskeeda's organic traffic, requiring cost reduction measures and an expected recovery period. — Management acknowledged

    medium

    Q&A highlights

    8

    “Our total investment in this asset was around EUR 42 million. So closer to INR 420-430 crores... We are doing proactive work where we believe the cash that the company requires to go ahead and keep surviving is not going to be sustainable for us to go ahead and keep on funding this asset in the future.”

    Clarified the significant investment amount and the strategic decision to impair rather than continue funding, highlighting the severity of market conditions in Europe.

    asked by Jinesh Joshi

    3 min read6 chapters

    Detailed Narrative

    01

    Strong H1 and Q2 FY26 Financial Performance

    Nazara Technologies delivered robust financial results for H1 FY26, with revenue reaching ₹1025.2 crores, an 80.2% increase year-on-year, and EBITDA growing by 118.5% to ₹109.4 crores. For Q2 FY26, revenue was ₹526.5 crores, up 65.1%, and EBITDA was ₹62 crores, a significant 146.4% increase YoY. The company also reported a strong H1 FY26 operating cash flow (pre-tax) of ₹71.5 crores, up 170.8% YoY, demonstrating efficient cash conversion.

    02

    Impact of Real Money Gaming Ban and Impairments

    Despite strong operational performance, Q2 FY26 PAT was negative ₹33.9 crores, primarily due to the real money gaming ban in India and the subsequent impairment of Moonshine Technologies. Additionally, Nazara's investment in Freaks4U, totaling approximately EUR 42 million (₹420-430 crores), was impaired due to severe market headwinds🌐 in Europe, including widespread layoffs, AI impact, and a decline in Western eSports. The de-subsidiarization of Nodwin Gaming, as Nazara's stake fell below 50%, resulted in a meaningful one-time📎 gain due to fair value accounting.

    03

    Segmental Growth Across Core Gaming and AdTech

    The core gaming segment, encompassing mobile, PC-Console, and offline gaming, showed exceptional growth, with H1 FY26 revenue up 159% and EBITDA up 253%, achieving an EBITDA margin of 23.2%. Mobile gaming revenue grew 81% and EBITDA 95% YoY in Q2 FY26. AdTech also demonstrated robust performance, with Q2 FY26 revenue increasing by 501% and EBITDA by 289% YoY, contributing ₹10 crores to H1 FY26 EBITDA. Nodwin's core business revenue and EBITDA grew 31% and 32% respectively in Q2 FY26.

    04

    Strategic Focus on IP Ownership and Centers of Excellence

    Nazara is prioritizing IP ownership and leveraging centers of excellence for user acquisition, analytics, AI, and growth to drive portfolio performance and create operating leverage. These shared capabilities are expected to compound performance at scale, with early successes seen in IPs like Kiddopia. The company aims to build a large direct-to-consumer network with 50-100 million gamers, utilizing first-party data, cross-promotion, and a new 'one Nazara ID' across all its published games.

    05

    Challenges and Recovery Paths for Key Assets

    Kiddopia, which struggled post-IDFA, is now showing positive subscriber growth, with Q4 FY26 expected to deliver further positive momentum. Sportskeeda, a flagship property of Absolute Sports, faced a significant negative impact from a Google Core update in March, leading to a 13% YoY cost reduction in Q2 and a planned 40% reduction in Q3, with management hopeful for a bounce back. Other Absolute Sports properties like Pro Football Network, Prime Timer, Soap Central, and Deltia's Gaming showed strong growth.

    06

    Offline Gaming Expansion and New IP Launches

    Offline gaming, including Smaaash and Funky Monkeys, is expanding rapidly. Three new Funky Monkey centers were launched in Q2 FY26, with a target to grow from 14 to 100 centers in the next couple of years. Smaaash 2.0 revamp is targeted for FY27. The company also launched the Bigg Boss game in India, following the acquisition of the Big Brother global license, and is in early stages of user acquisition, expecting it to compound players over multiple seasons.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.