Nazara Technologies Q1 Net Profit More Than Doubles to ₹51.3 Crore, Revenue Nearly Doubles {update}

EBITDA and Margins Improve
Nazara reported an EBITDA of ₹47.4 crore for Q1 FY26. This was up 90.4% year-on-year from ₹24.9 crore. The company’s core gaming EBITDA margin stood at 24.4%, highlighting stronger operational efficiency. On a consolidated basis, margins were slightly lower, at around 9.5%, due to higher marketing and user acquisition spends.

Key Growth Drivers
The performance was boosted by Nazara’s recent acquisitions. Fusebox, Animal Jam, and Curve Games added significant value to the gaming portfolio. These brands helped expand the company’s audience and revenue streams.
Nazara also strengthened its user acquisition and analytics capabilities during the quarter. This allowed the company to target users more effectively and optimise marketing spending.

Corporate Actions: Stock Split and Bonus Issue
Apart from strong financial results, Nazara’s board approved two major corporate actions:

• A 1:2 stock split, which will reduce the face value of shares from ₹4 to ₹2.
• A 1:1 bonus issue, which will give shareholders one additional share for every share they hold.

These steps are aimed at improving stock liquidity and rewarding shareholders.

Gaming Continues to Lead the Business
Gaming remains the largest revenue contributor for Nazara. The company’s focus on acquiring popular game titles and expanding into new genres has paid off. The addition of global IPs has improved the reach of its gaming division and opened new monetisation opportunities.
Nazara’s eSports and gamified learning verticals also showed healthy traction during the quarter.

Management Outlook
The management expressed confidence in sustaining growth in the coming quarters. They pointed to the company’s expanding portfolio, strong brand presence, and growing global audience as reasons for optimism. Nazara aims to keep investing in new games, content, and technology to maintain its growth momentum.

Market Reaction
Investors welcomed the Q1 results and corporate actions. The share price saw increased trading activity following the announcement. Analysts believe that the stock split and bonus issue could attract more retail investors in the coming months.

Nazara Technologies has started FY26 on a strong note. With net profit more than doubling and revenue almost doubling, the company’s strategy of acquisitions, brand building, and user-focused marketing is delivering results. The corporate actions signal confidence from the management and a focus on rewarding shareholders.

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