Nazara Technologies has started its fiscal year on a strong note, posting results that exceeded market expectations. The diversified gaming and media powerhouse reported consolidated revenue of ₹498.80 Crores in Q1 FY26, a remarkable 99.44% year-over-year surge from ₹250 Crores. Profit after tax also impressed, jumping 118% to ₹51.30 Crores, compared to ₹23.50 Crores in the same quarter last year.
Joint MD and CEO Nitish Mittersain attributed this success to the company’s sharpened focus on IP-led gaming and reinvestment into expanding its intellectual property portfolio.
“We are seeing early results from our sharpened focus on IP-led gaming and are reinvesting this momentum into expanding our IP portfolio,” he said.
Key Financial Highlights
- Consolidated Revenue: ₹498.80 Cr (up 99.44%)
- EBITDA: ₹47.40 Cr (up 90.40%)
- Net Profit (Continuing Ops): ₹36.42 Cr (up 129%)
- Total Profit After Tax: ₹51.30 Cr (up 118%)
- Total Expenses: ₹451 Cr (up 100.20%)
While revenue nearly doubled, expenses also climbed significantly as the company invested heavily in marketing, product innovation, and acquisitions.
PokerBaazi Leads Growth Through Moonshine
The standout engine of growth came from Moonshine Technologies, Nazara’s associate company and the parent of PokerBaazi. Moonshine reported ₹191.80 Crores in net revenue, a 54% YoY growth, while PokerBaazi’s Gross Gaming Revenue (GGR) surged 46% YoY to ₹434 Crores.
However, the surge came at a cost. Moonshine posted an EBITDA loss of ₹73.90 Crores, up from a ₹29.30 Crores loss a year ago, mainly due to heavy marketing tied to the IPL season. This campaign, though costly, boosted user liquidity and drove record highs in both daily and monthly active users.
Nazara’s strategic ₹982 Crore investment in Moonshine in 2024 has started to pay off, with PokerBaazi firmly establishing itself as the market leader in India’s online poker industry.
Diversified Portfolio Powering Expansion
Beyond real-money gaming, Nazara continues to strengthen its diversified portfolio:
- Gaming Segment: Revenue jumped 158.6% YoY to ₹240 Crores, boosted by the acquisition of UK-based publisher Curve Games, expanding Nazara’s presence in PC and console gaming.
- Ad Tech: Delivered spectacular growth with revenue of ₹106 Crores, more than four times last year’s figure. To drive further scale, Nazara appointed industry veteran Rohit Sharma as Executive Director.
- eSports: Through associate company Nodwin Gaming, revenue climbed 16% YoY to ₹154 Crores, cementing Nazara’s position as a leader in India’s eSports ecosystem.
Recent acquisitions like Smaaash indoor centres, Funky Monkeys kids’ brand, and a Pokerverse VR title showcase Nazara’s multi-pronged growth strategy.
Stock Market Reaction and Shareholder Rewards
The market rewarded Nazara’s Q1 performance handsomely. Following the results announcement on August 12, the company’s stock surged to a new 52-week high of ₹1,412.90, closing the week strong. Adding to investor cheer, the board proposed a 1:1 bonus issue and a stock split (₹4 to ₹2 face value), subject to approval.
The Overhang: Supreme Court Verdict on RMG
Despite the stellar quarter, one looming challenge remains. The Supreme Court of India has reserved judgment in the Gameskraft case, which will determine the legality and tax treatment of real-money gaming. With retrospective GST demands exceeding ₹1.50 Lakh Crores, Nazara and its subsidiaries like OpenPlay face potential liabilities of over ₹1,120 Crores.
ALSO READ: Nazara Sells 94.86% Stake in OpenPlay to Moonshine Technology for Rs 104.34 Crore
Outlook
Nazara’s Q1 FY26 results confirm that its IP-led strategy and RMG investments are driving growth across multiple verticals. If the Supreme Court verdict provides clarity without crippling taxes, Nazara is positioned to scale further, leveraging its gaming, ad tech, and eSports ecosystems.
For now, the company has momentum on its side, with PokerBaazi leading the charge and diversified businesses cushioning industry risks.
