Mumbai: Nazara Technologies Limited has reported its audited financial results for the quarter and full year ended March 31, 2026, delivering its strongest profitability to date and signalling a strategic shift toward a high-margin, IP-led gaming model.
The company posted FY26 revenues of INR 1,829 crore, while EBITDA surged 66% year-on-year to INR 255 crore, marking a pivotal year in its evolution. Profitability gains were underpinned by operating leverage and a sharper focus on core gaming, with EBITDA margins expanding significantly through the year.
In Q4FY26, Nazara reported revenues of INR 398 crore, down 24% year-on-year due to the de-consolidation of NODWIN Gaming from August 2025. However, on a like-for-like basis excluding Nodwin, revenues grew 8%, indicating underlying strength in the core business. Quarterly EBITDA rose 52% YoY to INR 78 crore, with margins touching 19.5%—an expansion of nearly 970 basis points.
Gaming drives profitability shift
A key highlight of FY26 was the sharp increase in EBITDA contribution from the gaming segment, rising from 56% in FY25 to 90% in FY26. This reflects Nazara’s deliberate pivot toward its core gaming portfolio, moving away from lower-margin verticals.
The company is increasingly positioning itself as a globally diversified gaming platform across mobile, PC, console, and offline gaming, with a presence spanning India, North America, and Europe.
IP expansion and M&A scale-up
Nazara’s intellectual property (IP) portfolio expanded meaningfully during the year, led by its largest acquisition to date—Bluetile and BestPlay—which added 17 casual mobile IPs and approximately 22 million monthly active users. The consolidation of these assets is expected to significantly enhance revenue and EBITDA scale from FY27 onward.
Existing IPs also delivered improved performance.
- Kiddopia continued subscriber growth for the second consecutive quarter with better unit economics.
- Animal Jam expanded margins and extended its presence onto Roblox.
- Fusebox scaled its narrative gaming engine across multiple reality-TV IPs, with further launches planned in FY27.
- PC and console title Human: Fall Flat crossed 58 million lifetime units globally, reinforcing Nazara’s global publishing credentials.
COE playbook underpins operating leverage
Central to Nazara’s performance is its Centres of Excellence (COE) framework, spanning user acquisition, data analytics, artificial intelligence, growth, and product. These capabilities are now embedded across the lifecycle of all owned and acquired gaming IPs, enabling scalability and improved monetisation.
The company reported a pre-tax operating cash flow (OCF) of INR 213 crore, up 81% YoY, supported by a strong EBITDA-to-OCF conversion ratio of 84%, reflecting efficient cash generation.
Leadership additions signal strategic intent
Nazara also strengthened its board with the appointment of Mithun Sacheti, Founder of CaratLane, as Non-Executive Director, and Muraarie Rajan as Independent Director. The appointments bring expertise in consumer brand-building, global M&A, and strategic advisory.
Outlook: scaling a global gaming platform
Commenting on the results, Nitish Mittersain, Joint MD & CEO, said FY26 marked a step-change in scale, profitability, and earnings capacity. He emphasised that operating leverage is now “real and compounding,” with the next phase focused on global expansion.
Heading into FY27, Nazara appears positioned to scale further on the back of a larger IP portfolio, improving margins, and an AI-enabled gaming infrastructure—while maintaining disciplined execution and a focus on sustainable profitability.
