In Q2FY26, Nazara recognised an impairment of INR 9.2bn on its investment in Moonshine Technologies due to the regulatory ban on RMG. Nodwin was de-consolidated in Q2FY26. Nodwin impaired its investment in Freaks4U. The impact on Nazara was INR 2bn. Sportskeeda was impacted negatively due to change in Google’s SEO algorithm. On the positive side, Fusebox acquisition has fared better than expected. There are also early signs of improvement in the early learning segment (Kiddopia and Animal Jam). Management has guided for ~25% EBITDA margin in the gaming business in the medium term. This, in our view, should drive consolidated EBITDA margin of ~20%. We think execution on this parameter shall be key to watch. Upgrade to HOLD; INR 275 target price unchanged.
OutlookWe upgrade our rating on the stock from Reduce to HOLD, with an unchanged target price of INR 275 (earlier INR 1,100 stock split 1:4) valuing Nazara Technologies using the SoTP framework.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Nazara Technologies_14112025_ICICI SecuritiesDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
