Nazara Technologies has unveiled its FY 2025-26 Annual Report, showcasing consolidated revenue of Rs 1,829 crore and a strategic pivot toward a gaming-first global platform. With 90% of group EBITDA now derived from gaming, the company is scaling international operations in the US and UK. While reporting record growth, the firm noted regulatory headwinds, including ongoing GST-related notices and recent impairment losses linked to online gaming legislation. Investors should note the company is not paying a dividend this year due to standalone losses.
Nazara Technologies FY 2025-26 Performance Overview
Consolidated Revenue: Rs 1,829.0 crore | Consolidated EBITDA: Rs 254.8 crore
Reader Takeaway: Gaming segment drives 90% of EBITDA, though regulatory tax notices and standalone losses present near-term headwinds.
What just happened
Nazara Technologies has released its FY 2025-26 Annual Report, confirming a consolidated revenue of Rs 1,829 crore and EBITDA of Rs 254.8 crore. The gaming business emerged as the primary engine, delivering Rs 1,072.2 crore in revenue and a strong 24.7% EBITDA margin. During the year, the company shifted its registered office to Worli, Mumbai, and completed key structural changes, including the reclassification of NODWIN Gaming as an associate entity.
Why this matters
The company is aggressively moving toward a 'gaming-first' model with a focus on high-margin, IP-led growth. By centralizing user acquisition and AI-driven development via Centres of Excellence, Nazara aims to capture larger market shares in the US and UK. The acquisition of a 50.01% stake in Bluetile and BestPlay for US$ 100.3 million highlights its intent to further consolidate global gaming assets.
Governance and Corporate Actions
The Board has not declared a dividend for the fiscal year citing standalone losses. Several leadership changes were enacted, including the appointment of Rohit Sharma as Executive Director. The 27th Annual General Meeting is scheduled for September 25, 2026, via video conference.
Risks to watch
Regulatory uncertainty remains a primary concern, with subsidiaries facing multiple GST-related show-cause notices. Additionally, the enactment of the Promotion and Regulation of Online Gaming Act, 2025, has resulted in impairment losses on certain investments. Dependence on platform giants like Google and Apple for app distribution remains a critical operational risk factor.
Context metrics
- Gaming segment contribution to Group EBITDA: ~90%
- International revenue share: Over 90% of gaming revenue
- SMAAASH Entertainment FY26 Revenue: Rs 75.9 crore