Nazara Technologies Reports Strong FY26 Earnings: EBITDA Jumps 66%

Reader Takeaway: Gaming drives profit surge; revenue dip possible from de-consolidation.

What Happened: FY26 Financial Results

Nazara Technologies reported strong FY26 financial results. Consolidated revenue grew 13% year-over-year to INR 1,829 crore.

EBITDA surged 66% year-over-year to ₹255 crore. This robust performance was largely driven by the company's high-margin gaming business, which contributed 90% of the FY26 EBITDA.

The fourth quarter of FY26 (Q4FY26) also showed strength, with consolidated EBITDA reaching ₹78 crore, a 52% increase YoY. The EBITDA margin for Q4FY26 stood at a healthy 19.5%.

The company plans to consolidate its acquisitions of Bluetile and BestPlay into FY27 financials, pending regulatory approval. These moves are expected to add substantial scale and capabilities.

Why It Matters: Strategic Shift to Gaming Powerhouse

Nazara is shifting towards becoming a high-margin, globally diversified gaming company. This expansion covers mobile gaming, PC/console publishing, and offline gaming segments.

AI is being integrated across the game lifecycle—from development and marketing to live operations—to boost efficiency and player engagement.

Company Strategy: Growth Through Acquisitions

Nazara has consistently pursued growth through strategic acquisitions in gaming and digital sports media. This includes establishing a strong presence in esports through Nodwin Gaming and expanding into fantasy sports and other gaming verticals.

Consolidating the Bluetile and BestPlay acquisitions in FY27 continues this strategy, aiming to strengthen its casual gaming offerings and AI integration.

Key Changes Ahead

• Business Model: Nazara is increasingly focused on higher-margin, global gaming operations.
• Acquisition Scale-up: The planned consolidation of Bluetile and BestPlay from FY27 will significantly boost the company's scale and technological capabilities.
• AI Integration: Expect greater use of AI across Nazara's gaming development, marketing, and operations.
• Reported Revenue Impact: Subsidiary de-consolidation, notably Nodwin Gaming from August 2025, will affect reported revenue figures.

Potential Risks

• The filing notes that Q4FY26 revenue de-growth is due to the de-consolidation of Nodwin Gaming from August 2025. This indicates a potential impact on reported revenue trends from subsidiary divestments.

Peer Comparison

Nazara Technologies operates in a unique segment of the Indian listed market. While Delta Corp Ltd is a player in the gaming and casino sector, its business is primarily focused on physical and online casinos.

Delta Corp reported FY24 revenues of approximately ₹1,228 crore and Profit After Tax of ₹129 crore, highlighting a different business model and revenue stream compared to Nazara's diversified gaming and esports focus.

Key Financials

• FY26 Consolidated Revenue: INR 1,829 Cr (13% YoY increase).
• FY26 Consolidated EBITDA: INR 255 Cr (66% YoY growth).
• Q4 FY26 Consolidated EBITDA Margin: 19.5%.

What to Track Next

• Monitor regulatory approvals for the consolidation of Bluetile and BestPlay acquisitions into FY27 results.
• Track the progress and launch of Smaaash 2.0.
• Observe the expansion plans for Funky Monkeys centres, including new city forays.
• Look out for the development and launch of new gaming IPs, such as "The Traitors" in FY27.