Nazara Technologies on November 12 reported a loss of Rs 33.9 crore for the quarter ended September 30, 2025, marking the diversified gaming and sports media company's first loss-making quarter since it went public in 2021.
Why did Nazara report a loss in Q2FY26?The loss was primarily due to a one-time impairment of its Rs 914.7 crore investment in Moonshine Technologies (PokerBaazi) following the government's recent law that imposed a blanket ban on real-money games in the country.
Nazara Technologies also recognized Rs 206.3 crore as its share of loss from associate firm Nodwin Gaming for the period between August 13 and September 30, 2025, largely due to a provision for impairment related to Freaks4U. In Q2FY26, the firm booked an additional Rs 17.5 crore as its equity share of loss in Moonshine Technologies (PokerBaazi).
This was partly offset by a one-time gain of Rs 1,098.5 crore, after Nazara revalued its retained stake in Nodwin Gaming at fair value following its de-subsidiarisation, as the company’s holding in Nodwin Gaming fell to 47.66 percent.
Nazara's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) however grew by 146.4 percent year-on-year (YoY) to Rs 62 crore for the quarter from Rs 25.2 crore in the year-ago quarter.
The company's revenue from operations also grew 65.1 percent YoY to Rs 526.5 crore for the quarter, from Rs 318.9 crore in the corresponding quarter last year.
In a statement, Nazara founder Nitish Mittersain said the accounting adjustments this quarter, including the Moonshine impairment and Nodwin fair value gain, are "one-time items and do not impact operating cash flows or the momentum of the company's core business."
What drove Nazara's revenue growth in Q2-FY26?Nazara's revenue growth was fueled by a strong performance in its core gaming business, bolstered by recent acquisitions such as UK-based mobile gaming studio Fusebox and PC/Console publisher Curve Games.
A snapshot of Nazara's mobile gaming revenuesThe mobile gaming segment’s revenue jumped 81 percent year-on-year to Rs 206 crore for the quarter, from Rs 114 crore in the same period last year. This was led by more than 25 global franchises, including Love Island, Big Brother, Kiddopia, Animal Jam, and WCC (World Cricket Championship), supported by recurring content seasons and strong engagement metrics, the firm stated.
Read: Nazara subsidiary Fusebox Games to develop a Bigg Boss mobile game
The PC and console publishing business reported revenues of Rs 60.7 crore for the quarter, driven by steady performance of evergreen global titles like Human: Fall Flat, alongside incremental gains from catalogue monetisation and platform expansion, the company stated.
The offline gaming business, which comprises of interactive entertainment brands Smaaash and Funky Monkeys, reported revenues of Rs 29.6 crore for the quarter. Nazara stated that these brands delivered profitable growth driven by standardised centre playbooks, growing repeat footfall, and disciplined expansion.
“Nazara continued strengthening its position as an IP-led, global gaming platform. In H1-FY26, core gaming revenues grew 159 percent and EBITDA grew 253 percent, driven by deeper LiveOps engagement, global scale, and strong unit economics across mobile, console, and PC," Mittersain said.
"We are evolving from publishing individual games to building and scaling long-term franchises. Our Centres of Excellence in UA, Analytics, AI, and Growth are creating portfoliowide operating leverage," he added.
Last year, Nazara implemented a new operating model that brought the core gaming business into the parent entity. The company had stated this move would boost the parent firm's revenue and free cash flow, enabling investments in both organic and inorganic growth.
How did Nazara's adtech and esports verticals perform in Q2-FY26?Adtech business Datawrkz's revenue increased six-fold to Rs 145.1 crore for the quarter while EBITDA profit rose nearly four-fold to Rs 7 crore.
Nodwin Gaming reported overall revenues of Rs 163 crore for the quarter, while EBITDA loss was at Rs 12.4 crore. The company's core business is however growing profitably, posting revenues of Rs 124 crore and EBITDA profit of Rs 3 crore.
Meanwhile, Sportskeeda reported revenues of Rs 33.3 crore for the quarter, while EBITDA profit was at Rs 1.8 crore. The company has also forayed into Pickleball by acquiring the Mumbai franchise in the inaugural Indian Pickleball League.
Sportskeeda parent Absolute Sports will build and operate the team, including its digital identity, brand, website, social channels, athlete marketing, and fan engagement programmes, the firm stated.
Nazara is also hiking its ownership in mobile-first digital entertainment startup Rusk Media by purchasing 5.23 percent stake from Nodwin Gaming in an all-cash deal of up to Rs 27.15 crore. Once completed, Nazara will hold 7.18 percent in Rusk Media on a fully diluted basis.
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