India’s listed gaming company Nazara Technologies reported a 13-fold jump in consolidated net profit for the March quarter of FY26, supported by growth in its core gaming business and improved operating margins, even as revenue declined following the deconsolidation of esports arm Nodwin Gaming.
The company posted a net profit of ₹55.7 crore ($5.81 million) for the March quarter, marking multi-fold growth from a year earlier. Revenue from operations fell 23.5 per cent year-on-year to ₹398 crore ($41.6 million) due to the removal of Nodwin Gaming from consolidated accounts after regulatory changes in the real-money gaming sector.
Gaming business drives growth
For the full financial year FY26, Nazara reported a 61 per cent increase in profit to ₹81.9 crore ($8.56 million). Annual revenue rose 12.6 per cent to ₹1,829 crore ($191.2 million), while earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbed 66 per cent to ₹255 crore.
Quarterly EBITDA stood at ₹78 crore ($8.15 million), up 52 per cent year-on-year. EBITDA margins improved to 19.5 per cent during the quarter, nearly 970 basis points higher compared with the same period last year. The company also generated pre-tax operating cash flow of ₹213 crore ($22.3 million) in FY26, an 81 per cent increase from the previous year.
Nazara said the gaming segment became the main contributor to profitability during FY26 as the company shifted focus toward higher-margin gaming operations.
EBITDA contribution from gaming increased to 90 per cent in FY26 from 56 per cent in FY25. The company said the change reflected its strategy to prioritise core gaming businesses over non-core verticals.
“Nazara today operates at a materially different scale than it did 12 months ago. Operating leverage is real, and it is compounding,” said Nitish Mittersain, Joint Managing Director and Chief Executive Officer of Nazara Technologies.
Mittersain added that FY27 would be focused on scaling the platform globally across gaming categories and markets.
The company operates across mobile gaming, PC and console gaming, and offline gaming, with exposure in India, North America and Europe.
Bluetile and BestPlay acquisition
Nazara also outlined plans for the integration of recently acquired gaming businesses Bluetile Games and BestPlay in a deal valued at ₹918 crore ($95.9 million).
Mittersain said the company plans to keep both businesses operating separately during the next financial year while integrating artificial intelligence capabilities across platforms. Some Nazara games are expected to be offered on both platforms.
The transaction is expected to close over the next month.
According to the company, Bluetile’s scale is close to Nazara’s existing business, and the acquisition is expected to significantly increase revenue and EBITDA in FY27.
Mittersain said the deal is expected to be earnings per share accretive immediately after completion. He also indicated that the company may continue pursuing similar acquisitions in the future.
Non-core businesses may be divested
Nazara said it plans to monetise non-core businesses, including esports and adtech, as part of a wider strategy to focus on gaming operations.
“Our plan is to monetise our non-core assets and focus on our core gaming business,” Mittersain told Moneycontrol. He added that the company would consider divestments if it receives suitable valuations.
Nazara currently owns Absolute Sports, which operates sports media platforms including Sportskeeda and Pro Football Network. It also holds about 55 per cent stake in adtech platform Datawrkz.
The company deconsolidated Nodwin Gaming in August 2025 after reducing its controlling stake, although it remains the largest shareholder with a 47.66 per cent holding. Mittersain said Nodwin is considering an initial public offering, while Nazara may also evaluate a partial or full exit from the esports business.
Board appointments
Nazara also announced the appointment of Mithun Sacheti as a Non-Executive Director and Muraarie Rajan as an Independent Director on its board.
The company said Sacheti will contribute consumer brand-building expertise, while Rajan will support global mergers and acquisitions and strategic advisory initiatives.
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