Nazara Technologies' Q2 FY 2025-26 Quarterly Results

Result Summary

• Nazara Technologies Ltd reported a 183.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 373.8%.
• Its expenses for the quarter were up by 2.5% QoQ and 66.3% YoY.
• The net profit decreased 193.2% QoQ and decreased 308.9% YoY.
• The earnings per share (EPS) of Nazara Technologies Ltd declined at 0.84 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Nazara Technologies Ltd is a diversified gaming and sports media company based in India. The company is known for its wide array of offerings in the digital content space, including mobile games, eSports, and gamified learning. Nazara operates across multiple segments, such as subscription-based mobile games and real money gaming, catering to a diversified audience. The company has made its mark in emerging markets with a focus on India, the Middle East, Africa, and Southeast Asia. Recently, Nazara has been in the spotlight for expanding its footprint in the eSports segment, an area where it is expected to leverage its existing infrastructure and expertise to drive growth.

Revenue

In the second quarter of FY26, Nazara Technologies Ltd reported a substantial increase in total income, amounting to ₹1,630.92 crores. This represents a remarkable quarter-over-quarter (QoQ) growth of 183.2% from ₹575.87 crores in Q1FY26, and an even more significant year-over-year (YoY) increase of 373.8% from ₹344.25 crores in Q2FY25. This sharp rise in total income can be attributed to the company's strategic focus on expanding its gaming and eSports offerings. The substantial revenue growth highlights the effectiveness of Nazara's initiatives in capitalizing on the growing demand for digital and interactive entertainment.

Profitability

The profitability of Nazara Technologies Ltd during Q2FY26 presents a complex picture. The company reported a profit before tax of ₹181.97 crores, showing an impressive QoQ increase of 231.6% from ₹54.87 crores in Q1FY26 and a YoY growth of 691.9% from ₹22.98 crores in Q2FY25. However, the profit after tax was negative, at -₹33.93 crores, a stark contrast to the positive ₹36.42 crores reported in Q1FY26 and ₹16.24 crores in Q2FY25. This significant drop in profitability after tax is further reflected in the earnings per share (EPS), which decreased to -₹0.84 from ₹6.04 in Q1FY26 and ₹3.11 in Q2FY25. The negative tax amount of -₹7.78 crores in Q2FY26, compared to -₹5.80 crores in Q1FY26 and ₹3.65 crores in Q2FY25, adds to the complexity of the financial results for this quarter.

Operating Metrics

The operating metrics for Nazara Technologies Ltd reveal an increase in total expenses, which rose to ₹534.25 crores in Q2FY26, marking a 2.5% QoQ increase from ₹521.00 crores in Q1FY26 and a 66.3% YoY rise from ₹321.27 crores in Q2FY25. This increase in expenses indicates a scaling of operations to support the company's expanding business activities. Despite the rise in expenses, the company achieved a significant increase in profit before tax, although the profit after tax turned negative. The disparity between the pre-tax and post-tax profitability figures suggests that factors such as tax adjustments or extraordinary items may have impacted the net results. The financial data highlights the dynamic nature of Nazara's operations and the associated costs of leveraging growth opportunities in the digital entertainment industry.