Nazara Technologies Revenue Report: Gaming Firm Experiences Revenue Decline

Nazara Technologies, a prominent gaming and sports media company, reported a 23.5% drop in its revenue year-on-year during the final quarter of the last fiscal year (Q4 FY26). In contrast, the profit for the firm skyrocketed over 13 times during the same timeframe.

The operating revenue for Nazara fell to Rs 398 crore in Q4 FY26, down from Rs 520 crore in Q4 FY25, as per financial data obtained from the National Stock Exchange (NSE).

Revenue Breakdown

The gaming division remained the primary contributor to the firm’s income, generating 70% of total operating revenue. This segment saw its revenue soar by 78% year-on-year, rising to Rs 278 crore in Q4 FY26 from Rs 156 crore in Q4 FY25.

However, earnings from other business areas, including esports and ad-tech, plummeted by 85% and 40%, resulting in revenues of Rs 32 crore and Rs 89 crore, respectively, in Q4 FY26. This decline was largely attributed to the deconsolidation of NODWIN Gaming, reduced sponsorship expenditures in esports, and a slowdown in digital advertising demand from gaming and startup sectors.

When factoring in additional income, Nazara’s total earnings reached Rs 448 crore in Q4 FY26, compared to Rs 538 crore in the same quarter of the previous fiscal year.

Annual Performance Overview

For the entire fiscal year, Nazara achieved a 12.6% increase in operational revenue, totalling Rs 1,829 crore in FY26, while profits rose by 60.8%, reaching Rs 82 crore during this period.

Expenditure Insights

On the expenditure side, the total costs for the company decreased by 29%, falling to Rs 375 crore in Q4 FY26 from Rs 528 crore in Q4 FY25. Marketing continued to be the largest expense category at Rs 111 crore, followed by costs related to employee benefits and content.

The significant overall cost reductions in areas such as content, advertising, employee benefits, and platform fees contributed to the dramatic surge in Nazara’s profit, which climbed over 13 times year-on-year to Rs 55.7 crore in Q4 FY26, up from Rs 4.07 crore in Q4 FY25.

Market Performance

By the close of today’s trading session, Nazara Technologies’ shares were valued at Rs 262.95, resulting in an estimated market capitalisation of around Rs 9,741 crore.