India-based Nazara Technologies has reported a strong increase in financial performance for the first quarter of fiscal year 2026, driven by robust execution across its gaming portfolio, strategic investments in intellectual property, and targeted user acquisition. The publicly listed gaming and sports media group posted revenue from operations of ₹498.8 crore ($56.76 million) for the quarter ended 30 June 2025, nearly doubling from ₹250.08 crore ($28.46 million) in the same period last year. Consolidated net profit rose 54 percent year-on-year (YoY) to ₹36.42 crore ($4.14 million), compared to ₹23.62 crore ($2.69 million) in Q1 FY26, despite a sequential revenue decline.
Revenue and profit performance
Revenue from operations grew 99 percent year-on-year, although it fell 4.8 percent sequentially from ₹520.20 crore ($59.20 million) in the March quarter. Profit before tax stood at ₹30.62 crore ($3.49 million), higher than ₹5.72 crore ($0.65 million) in Q4 FY25 and ₹34.03 crore ($3.87 million) in Q1 FY25. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was ₹47.4 crore ($5.40 million), up 90 percent YoY.
The core gaming segment delivered an EBITDA margin of 24.4 percent. Profit after tax for the quarter was ₹51.3 crore ($5.84 million), registering a 118 percent YoY rise.
Segment-wise performance
The gaming division remained the largest contributor, with revenues of ₹240.92 crore ($27.43 million) and a segment profit of ₹18.1 crore ($2.06 million). eSports generated ₹154.14 crore ($17.54 million) but recorded a loss of ₹24.35 crore ($2.77 million). The advertising technology vertical contributed ₹106.06 crore ($12.08 million).
Key growth drivers included Fusebox Games, Animal Jam, and Curve Games. Nazara’s Centres of Excellence in user acquisition and analytics played a significant role in enhancing performance across its gaming properties.
Corporate actions to enhance shareholder value
Nazara’s Board of Directors approved two measures aimed at rewarding shareholders. The company will split each fully paid-up equity share of face value ₹4 into two shares of ₹2 each. Following this subdivision, it will issue one bonus equity share of ₹2 for every one share held.
Mergers, Acquisitions and Investments
- Curve Digital Entertainment Acquisition: Nazara UK, a wholly owned subsidiary, completed the $29.55 million acquisition of UK-based Curve Digital Entertainment Ltd. and its subsidiaries.
- Sportskeeda’s Wrestling IP Deal: Sportskeeda acquired the intellectual property of ITR Wrestling and TJR Wrestling for $1.25 million.
- AFK Gaming Acquisition: Nodwin Gaming acquired a 92.3 percent stake in AFK Gaming Pvt. Ltd. for $0.86 million.
- Investment in STAN: Nazara Dubai committed up to $1 million for a 1.54 percent stake in Singapore-based Getstan Technologies.
Nitish Mittersain, Joint MD & CEO, Nazara Technologies said, “We are seeing early results from our sharpened focus on IP-led gaming and are reinvesting this momentum into expanding our IP portfolio and strengthening UA to drive sustained growth. We have also strengthened our leadership team with recent appointments bringing deep expertise in gaming.”
Leadership strengthening
In a move to boost its leadership, Nazara appointed industry veteran Rohit Sharma as Additional Director and Whole-time Director, designated as Executive Director. Sharma has over 25 years of experience in video games and digital media. He is the founder and former CEO of POKKT Mobile Ads, a mobile game advertising platform with a strong presence in India, Southeast Asia, and the Middle East and North Africa.
Following POKKT’s acquisition by Japan’s AnyMind Group in March 2020, Sharma served as Global COO and Board Member, contributing to its listing on the Tokyo Stock Exchange in 2023. Before POKKT, he headed the digital business at the Reliance ADA Group, building its gaming and digital operations from the ground up.
Global presence and brands
Nazara operates across India, North America, and other international markets. Its portfolio includes Curve Games, Kiddopia, Animal Jam, Fusebox Games, World Cricket Championship, and Sportskeeda. Offline gaming is represented through Funky Monkeys and Smaash Entertainment. The company also runs Datawrkz, a digital advertising technology business.
Tax disputes
Nazara disclosed ongoing goods and services tax disputes involving certain subsidiaries and associates. Show cause notices total over ₹11,87,000 lakh ($13.51 billion), but the company maintains that no liability is expected to arise from these proceedings.
