Hold Nazara Technologies; target of Rs 253: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Nazara Technologies with a target price of Rs 253 in its research report dated November 14, 2025.

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November 17, 2025 / 12:56 IST

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Nazara Technologies

We cut our EPS estimates by 15%/14% for FY27E/FY28E as we re-align our depreciation assumptions. NAZARA IN’s operational performance was broadly in line with EBITDA margin of 11.8% (PLe 11.0%) though bottom line was weighed down by multiple one-offs related to Nodwin, PokerBaazi and Freaks4U. The decision to deconsolidate Nodwin reflects NAZARA IN’s renewed emphasis on profitability over scale. The plan is to now focus on highmargin core gaming portfolio supported by ongoing releases such as new season of Love Island and Big Boss, alongside strong traction in Curve Games. Expansion in offline gaming also remains a key pillar with Smaaash 2.0 slated for relaunch in FY27E and plans to scale Funky Monkeys to ~100 centres over the next few years.

Outlook

Considering these factors, we build in a sales CAGR of 10% over the next 3 years with EBITDA margin of 12.8%/16.0%/16.6% for FY26E/FY27E/FY28E. We retain HOLD with a SoTP-based TP of Rs253.

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