Nazara Technologies Reports Revenue Growth

Nazara Technologies has achieved a notable 65% year-on-year increase in operating revenue for Q2 FY26. However, the Mumbai-based firm encountered a decline in profitability due to write-offs related to its investment in PokerBaazi, a development stemming from the recently enacted Promotion and Regulation of Online Gaming Act, 2025.

Growth in Operating Revenue

The company’s operating revenue rose significantly to Rs 526 crore in Q2 FY26, up from Rs 319 crore in Q2 FY25, based on unaudited financial reports from the National Stock Exchange (NSE). E-sports contributed 17% (Rs 87 crore) to this total, while the gaming segment accounted for 56% (Rs 296 crore), and ad tech made up 27% (Rs 143 crore) of the revenue.

Non-Operating Income Boost

Nazara also saw non-operating income reaching Rs 1,105 crore, which propelled the overall revenue to Rs 1,631 crore in Q2 FY26, compared to Rs 344 crore in the same period last year. On a half-yearly basis, revenue surged by 80%, increasing to Rs 1,025 crore in H1 FY26 from Rs 569 crore in H1 FY25.

Rising Expenses

In terms of expenses, Nazara’s total costs escalated by 66% to Rs 534 crore in Q2 FY26, compared to Rs 321 crore in the prior year’s quarter. Content costs were Rs 160 crore, and employee benefits expenses climbed to Rs 78 crore. Interestingly, marketing expenses nearly tripled, reaching Rs 116 crore in Q2 FY26.

Impact of Regulatory Changes

Following the enactment of the Promotion and Regulation of Online Gaming Act, Nazara recognised a substantial reduction of Rs 914.70 crore in its investment in Moonshine Technologies. Consequently, the company reported a loss of Rs 34 crore in Q2 FY26, a stark contrast to a profit of Rs 18 crore recorded in Q2 FY25. Over the half-year period, profits fell by 57.5% to Rs 17 crore in H1 FY26, down from Rs 40 crore in H1 FY25.

Plans for Acquisition Cancelled

This August, Nazara also decided to halt its plans to acquire a minority stake in Moonshine Technology Private Limited, the parent company of PokerBaazi, due to the ramifications of the online gaming regulation law.

Market Performance

As of the end of the trading day, Nazara’s shares were priced at Rs 257, with a total market capitalisation of Rs 9,539 crore, roughly equating to $1 billion.