Nazara Technologies Reports Significant Growth in Q3 FY25 Revenue

Gaming and sports media company Nazara Technologies has announced a remarkable year-on-year growth of 67% in operating revenue for the third quarter of FY25, in comparison to the same quarter of FY24. However, it is important to note that the Mumbai-based firm experienced a significant decline of 53% in profits.

Nazara’s operating revenue surged by 67%, reaching Rs 535 crore in Q3 FY25, up from Rs 320 crore during Q3 FY24. This information is based on the company’s unaudited consolidated financial statements obtained from the National Stock Exchange (NSE).

E-sports and Gaming Segments Drive Revenue Growth

The e-sports segment made up 43.5% of Nazara’s total operating revenue, contributing Rs 232.6 crore, while the gaming sector contributed 29% of the revenue, amounting to Rs 155 crore. Additionally, the ad tech segment provided a 2% share, accounting for Rs 10.5 crore of the topline.

Moreover, during this quarter, Nazara generated Rs 22 crore from interest and gains on financial assets, culminating in an overall revenue of Rs 556.6 crore.

Rising Expenses Impact Profit Margins

The company’s total expenses saw a substantial increase of 76%, rising to Rs 531 crore in Q3 FY25 from Rs 301 crore in Q3 FY24. The combination of content, events, and web servers represented 32% of the total expenses, translating to Rs 169 crore, while employee benefits accounted for 17%, which is Rs 88.6 crore. Interestingly, marketing expenditures soared to Rs 145 crore, growing 3.5 times compared to Rs 41 crore in Q3 FY24.

Despite the impressive growth in revenue, Nazara’s profits fell sharply by 53% year-on-year to Rs 13.7 crore in Q3 FY25, down from Rs 29.5 crore in the same quarter last year.

At the close of trading, Nazara’s stock was valued at Rs 930.65, leading to a total market capitalization of Rs 7,957.18 crore, which is approximately $916 million.