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    Nazara Technolo.

    NAZARA
    Media, Entertainment & Publication·4 Feb 2026
    Management Summary

    Nazara Technologies reported a mixed Q3 FY26, with overall revenue declining due to NODWIN's deconsolidation, but EBITDA and margins significantly improved driven by a focus on higher-margin IP-based gaming. Key segments like Gaming and Offline Gaming showed strong profitability, and Kiddopia returned to subscriber growth. Strategic investments and new game launches are expected to drive future growth, though some associate losses impacted overall profitability.

    Highlights

    5

    • Q3 FY26 EBITDA increased 29.4% to INR67.8 crore, with margins expanding to 16.7% as the company refocused on higher-margin IP-based gaming.

    • 9M FY26 revenue grew 29.7% year-on-year to INR1,431.2 crore, while EBITDA increased 73% year-on-year to INR177.2 crore with overall margins expanding to 12.4%.

    • Gaming segment Q3 FY26 revenue grew 66% year-on-year to INR257 crore and EBITDA grew 87% year-on-year to INR64.2 crore, resulting in a 25% EBITDA margin.

    • Kiddopia achieved a much-awaited resumption in subscriber growth in Q3 FY26, supported by coordinated COE efforts.

    • NODWIN, an associate company, delivered strong Q3 FY26 operational performance and profitability with revenue up 58% YoY to INR261 crore and EBITDA reaching INR40 crore.

    Concerns

    5

    • Q3 FY26 revenue was lower by 24.1% to INR406 crore, primarily due to the deconsolidation of NODWIN Esports business.

    • Kiddopia's margins dipped in Q3 FY26 due to increased user acquisition spend, though management views this as a healthy sign for future growth.

    • Marketing spend for Love Island in December impacted Q3 FY26 EBITDA in the near term.

    • Sportskeeda's Q3 FY26 costs were down 32% YoY, but traffic declined due to a Google Core update in FY25, impacting revenue.

    • Moonshine (PokerBaazi) incurred an operating loss of INR30 crore in Q3 FY26, offsetting gains from NODWIN.

    Key financials

    Metrics

    6

    Periods

    2

    Headline

    3
    • Revenue
      ₹406 Cr
      YoY-24.1%
    • EBITDA
      ₹67.8 Cr
      YoY+29.4%
    • EBITDA Margin
      16.7%

    9M

    3
    • FY26 Revenue
      ₹1,431.2 Cr
      YoY+29.7%
    • FY26 EBITDA
      ₹177.2 Cr
      YoY+73%
    • FY26 EBITDA Margin
      12.4%

    Segment breakdown

    Gaming Segment
    ₹257 Cr Q3 FY26 Revenue₹64.2 Cr Q3 FY26 EBITDA25% Q3 FY26 EBITDA Margin₹793.8 Cr 9M FY26 Revenue₹188 Cr 9M FY26 EBITDA23.8% 9M FY26 EBITDA Margin
    Mobile Gaming
    ₹534.7 Cr 9M FY26 Revenue₹99.2 Cr 9M FY26 EBITDA
    Offline Gaming
    36% Q3 FY26 EBITDA Margin₹24.3 Cr Smaaash Q3 FY26 Revenue₹7.1 Cr Smaaash Q3 FY26 EBITDA₹6.1 Cr Funky Monkey Q3 FY26 Revenue₹3.7 Cr Funky Monkey Q3 FY26 EBITDA
    Adtech
    86% 9M FY26 Revenue Growth95% 9M FY26 EBITDA Growth-22% Q3 FY26 Revenue Growth26% Q3 FY26 EBITDA Growth
    NODWIN (Associate)
    ₹261 Cr Q3 FY26 Revenue₹40 Cr Q3 FY26 EBITDA
    List

    Capital allocation

    5
    high confidence
    CategoryHeadline
    M&A

    nCore Games

    acquisition · integrated

    M&A

    Rusk Media

    acquisition · integrated

    M&A

    NODWIN Esports

    divestment · integrated

    M&A

    Moonshine (PokerBaazi)

    Other · Other

    Liquidity

    Cash ₹700 crores

    Net cash includes subsidiaries.

    Guidance & targets

    8
    CategoryTargetPriority
    Profitability
    Kiddopia User Acquisition Payback Period
    100% in two years
    		High
    Profitability
    Offline Business (Smaaash & Funky) EBITDA Margin
    25-30%
    		High
    Margin
    Offline Gaming (Funky Monkey) EBITDA Margin
    35-40%
    		High
    Margin
    Overall EBITDA Margin
    beyond 20%
    		Medium
    Capacity
    Funky Monkey Centers in India
    100 centers
    		Low
    Product Launch
    Curve Games New Titles
    5-6 new titles
    		High
    Product Launch
    WildWorks Go Slinky Go Public Release
    public release
    		High
    Breakeven
    Offline Business (Smaaash & Funky) Breakeven Point
    18 to 24 months
    		High

    Kiddopia Subscriber Growth & Margin Recovery

    next quarter
    CurrentSubscriber growth resumed, but margins dipped due to UA spend.
    TargetContinued subscriber growth and margin expansion.

    Why it matters

    Kiddopia is a key IP; sustained growth and margin recovery are crucial for overall profitability.

    Kiddopia returned to subscriber growth in Q3 FY '26 after several quarters, supported by the coordinated COE efforts with the management team and unlocked multiple levers of growth.

    How to verify

    key_financials.segment_breakdown[name='Mobile Gaming'].metrics[label='Q3 FY26 EBITDA Margin']

    Risks & concerns

    4
    RiskSeverity

    Revenue decline due to deconsolidation of NODWIN Esports

    Q3 FY26 revenue was lower by 24.1% primarily due to the deconsolidation of NODWIN Esports, but this was a strategic move to improve margins. — Management acknowledged

    medium

    Short-term margin impact from increased marketing spend

    Marketing spend for Love Island in December impacted Q3 FY26 EBITDA, but benefits are expected to translate into higher revenues in subsequent months. — Management acknowledged

    low

    Losses from associate companies offsetting gains

    An operating loss of INR30 crore from Moonshine (PokerBaazi) in Q3 FY26 offset the profit contribution from NODWIN. — Analyst acknowledged

    medium

    Traffic decline in Sportskeeda due to Google algorithm updates

    Sportskeeda experienced a decline in traffic due to a Google Core update in FY25, leading to cost realignment and focus on other initiatives like CricRocket. — Management acknowledged

    medium

    Q&A highlights

    8

    “So this is, I would say, the drop in margins is actually a very healthy sign in this particular case because we are acquiring more users that are profitable for us. And over the years in the coming quarters, you will see revenue growth that will make up for the short-term margin erosion. Kiddopia usually has a two years LTV that we see.”

    Clarifies that the margin dip in Kiddopia is a strategic investment in user acquisition for long-term revenue growth, not a sign of weakness.

    asked by Sachin Dixit

    3 min read6 chapters

    Detailed Narrative

    01

    Q3 & 9M FY26 Financial Performance Overview

    Nazara Technologies reported Q3 FY26 revenues of INR406 crore, a 24.1% decrease year-on-year, primarily due to the deconsolidation of NODWIN Esports. Despite this, EBITDA grew by 29.4% to INR67.8 crore, with margins expanding to 16.7%, reflecting a strategic shift towards higher-margin IP-based gaming. For the nine months ended FY26, revenue increased by 29.7% year-on-year to INR1,431.2 crore, and EBITDA saw a substantial 73% rise to INR177.2 crore, with overall margins reaching 12.4%.

    02

    Gaming Segment Growth and Kiddopia's Revival

    The core Gaming segment demonstrated robust growth in Q3 FY26, with revenue increasing 66% year-on-year to INR257 crore and EBITDA surging 87% year-on-year to INR64.2 crore, achieving a 25% EBITDA margin. Mobile gaming, a key component, saw its 9M FY26 revenue grow 48% year-on-year to INR534.7 crore and EBITDA by 43% to INR99.2 crore. Notably, Kiddopia returned to subscriber growth in Q3 FY26, a result of coordinated efforts from Nazara's centers of excellence in user acquisition, data analytics, growth, and product optimization.

    03

    Offline Gaming Expansion and Profitability

    The offline gaming portfolio reported healthy profitability with a 36% EBITDA margin in Q3 FY26. Smaaash contributed INR24.3 crore in revenue and INR7.1 crore in EBITDA, while Funky Monkey generated INR6.1 crore in revenue and INR3.7 crore in EBITDA. Funky Monkey is expanding rapidly, with one to two new centers launching monthly, aiming for 100 centers in India within the next couple of years. The Smaaash Experience 2.0 revamp is progressing, with a relaunch expected in a couple of quarters, targeting 25-30% steady-state EBITDA margins and an 18-24 month breakeven period per center.

    04

    Adtech and NODWIN Performance

    Adtech delivered stronger growth and improving profitability in 9M FY26, with revenue up 86% year-on-year and EBITDA up 95% year-on-year. In Q3 FY26, Adtech EBITDA increased 26% year-on-year, despite a 22% revenue decline, attributed to a reduced focus on low-margin non-tech managed services. Associate company NODWIN delivered strong Q3 FY26 results, with revenue up 58% year-on-year to INR261 crore and EBITDA reaching INR40 crore, driven by marquee executions and new IPs like the Counter-Strike World Championship.

    05

    Strategic Investments and Future Growth Drivers

    Nazara continues to make strategic minority investments in the Indian gaming ecosystem, including nCore Games and Rusk Media, to build a network for future exploitation as the market grows. New platforms are being explored, with Animal Jam soft-launched on Roblox. Fusebox Games is set to launch new well-known IPs like Big Boss and Big Brother, and WildWorks is preparing for the public release of its new hyper-casual game, Go Slinky Go, by the end of Q1 FY27. These initiatives, alongside Curve Games' upcoming 5-6 new titles in FY27-FY28, are expected to drive significant growth.

    06

    Capital Allocation and Liquidity

    The company maintains a strong liquidity position with approximately INR700 crore in net cash on its books, including subsidiaries. This capital is earmarked for organic growth where required and for additional strategic M&A, particularly targeting gaming studios. The deconsolidation of Freaks 4U from NODWIN and the operating loss of INR30 crore from the Moonshine (PokerBaazi) associate in Q3 FY26 were noted as factors impacting overall reported profitability, with efforts underway to reduce these drags.

    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.