Nazara Technologies Reports Significant Growth in Q1 FY26

Nazara Technologies, a notable player in gaming and sports media, has showcased a remarkable 99.6% year-on-year increase in operating revenue for Q1 FY26. The company, based in Mumbai, has seen its profit double to Rs 51 crore during the first quarter of this fiscal year.

Stellar Operating Revenue Growth

Nazara’s operating revenue in Q1 FY26 surged to Rs 499 crore, compared to Rs 250 crore in Q1 FY25, as per the unaudited financial statements made available through the National Stock Exchange (NSE).

Revenue Breakdown by Segment

E-sports accounted for 31% of Nazara’s total operating revenue, translating to Rs 154 crore. Meanwhile, the gaming segment represented 48% with Rs 241 crore, and ad tech contributed 21%, amounting to Rs 104 crore.

Overall Revenue and Financial Gains

During the quarter, Nazara also recorded Rs 77 crore from interest and earnings on financial assets, raising its total revenue to Rs 576 crore. When examining the quarter-on-quarter performance, there was a slight decline of 4% in operating revenue, down from Rs 520 crore in Q4 FY25.

Increase in Total Expenses

Nazara’s total expenses escalated by 116%, reaching Rs 521 crore in Q1 FY26, in contrast to Rs 241 crore from the same period last year. The content costs were reported at Rs 123 crore, while employee benefit expenses rose to Rs 94 crore. Remarkably, marketing expenses soared threefold to Rs 125 crore in Q1 FY26.

Profitability Highlights

With revenue doubling, Nazara’s profit also doubled to Rs 51 crore in Q1 FY26, including Rs 15 crore from discontinued operations. On a per-unit basis, the company expended Rs 1.04 to generate a Rupee of operating revenue, yielding an EBITDA of Rs 100 in Q1 FY26.

Strategic Business Moves

Recently, Nazara Technologies opted to relinquish majority control of Nodwin Gaming by not participating in its funding round, which reduced its stake below 50%. This decision, sanctioned by shareholders, has reclassified Nodwin as an associate company, although Nazara remains its largest shareholder.

Current Market Position

As of the latest trading day, Nazara’s shares were valued at Rs 1,418, which places the company’s total market capitalisation at approximately Rs 13,132 crore (around $1.5 billion).