Nazara posts 3x jump in profit to ₹47 crore, even as revenue dips 23.5%

Game and media-tech company Nazara Technologies posted a consolidated net profit of Rs 46.96 crore in the fourth quarter of financial year 2025-26 (Q4FY26), a nearly threefold increase from Rs 15.86 crore in Q4FY25, aided to some extent by a surge in other income.

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Sequentially, the company’s net profit grew nearly fivefold from Rs 9.84 crore in Q3FY26.

Nazara’s revenue from operations, however, declined 23.53 per cent to Rs 397.78 crore in Q4FY26 from Rs 520.2 crore in Q4FY25. On a quarter-on-quarter basis, revenue declined 2 per cent from Rs 405.97 crore in Q3FY26.

The company posted Rs 50.69 crore in other income in Q4FY26, compared to Rs 18.71 crore in the year-ago quarter and Rs 11.34 crore in the previous quarter ended December 2025.

For the full year (FY26), Nazara recorded Rs 1,243.58 crore in other income, compared to Rs 91.53 crore in FY25.

FY26’s figure includes Rs 1,098.46 crore as a “fair value gain” after the de-subsidiarisation of its erstwhile subsidiary Nodwin.

The fair value gain arose from a revaluation of the company’s remaining stake in Nodwin after it ceased to be classified as a subsidiary.

Nazara’s total expenses declined 28.84 per cent from Rs 527.72 crore in Q4FY25 to Rs 375.49 crore in Q4FY26. Sequentially, expenses declined 6.65 per cent from Rs 402.28 crore in Q3FY26.

The company sharply cut its expenses related to content, events and web-server costs, along with promotional spending such as advertising and marketing.

In a statement, the company said its Ebitda (earnings before interest, taxes, depreciation and amortisation) contribution from gaming increased from 56 per cent in FY25 to 90 per cent in FY26.

This came as the firm refocused on its core gaming business at a time when its stake in erstwhile subsidiary Nodwin fell below 50 per cent after the latter’s internal fundraise last year.

Share of net loss of associates and joint ventures accounted for using the equity method also shaved off gains in profit. For Q4FY26, the loss stood at Rs 30.5 crore, against Rs 5.45 crore in the year-ago period.

“Nazara today operates at a materially different scale than it did 12 months ago. The scale, quality and earnings capacity of the platform have expanded significantly. Operating leverage is real, and it is compounding. The years ahead are about scaling this platform globally,” said Nitish Mittersain, joint managing director and chief executive officer, Nazara Technologies.

The company has a presence in regions such as India, North America and Europe.

In March, the firm announced a preferential issue of warrants worth Rs 500 crore, with the proceeds planned to support strategic acquisitions, including Bluetile and BestPlay transactions, and accelerate growth across existing business verticals.

Nazara also announced the appointment of Mithun Sacheti, founder of CaratLane, as a non-executive director and Muraarie Rajan as an independent director on its board.