Nazara Technologies Limited announced its financial performance for Q2 and H1 FY26 and discussed strategic updates during its investor/analyst earnings call held on November 13, 2025. Key highlights include: * Financial Performance (H1 FY26): * Revenue: ₹1025.2 crores, up 80.2% year-on-year. * EBITDA: ₹109.4 crores, up 118.5% year-on-year. * Operating Cash Flow (pre-tax): ₹71.5 crores, up 170.8% year-on-year. * PAT: ₹17.4 crores. * Financial Performance (Q2 FY26): * Revenue: ₹526.5 crores, up 65.1% year-on-year. * EBITDA: ₹62 crores, up 146.4% year-on-year. * PAT: Negative ₹33.9 crores, primarily due to impairments. * Core Gaming Segment: * Grew by 159% in revenue and 253% in EBITDA for H1 FY26, with an EBITDA margin of 23.2%. * Mobile gaming, led by IPs like Love Island, Animal Jam, and WCC, saw Q2 revenue grow 81% and EBITDA grow 95% year-on-year. * PC-Console publishing performed well with IPs like Human Fall Flat (1.25 million units sold in September 2025) and Wobbly Life (>2 million lifetime units). * Offline gaming (Smaaash and Funky Monkeys) delivered ₹12 crores EBITDA in H1 FY26 at a 27.5% margin, with three new Funky Monkey centers launched in Q2 FY26. * Other Segment Performance: * AdTech delivered strong growth in Q2 FY26, with revenue up 501% and EBITDA up 289% year-on-year. * Nodwin’s core business showed profitable growth in Q2 FY26, with revenue and EBITDA growing 31% and 32% respectively. Nazara's stake in Nodwin fell below 50%, leading to de-subsidiarization and a meaningful one-time gain based on fair valuation. * Absolute Sports (Sportskeeda) navigated lower organic traffic, driving a 13% year-on-year cost reduction in Q2 and planning a 40% reduction in Q3. * Impairments and Strategic Adjustments: * Nazara recorded an impairment on its investment in Moonshine Technologies (PokerBaazi) due to new regulations in India's online skill-based real-money gaming space. The company maintains over ₹100 crores in cash and is exploring options for its platform. * A provision for impairment of approximately ₹206 crores was taken for Freaks4U, a subsidiary of Nodwin. This was attributed to significant headwinds in the European esports market, including layoffs and a stagnating market. Nodwin will not continue funding this business. * Future Strategy: * The company is focusing on creating centers of excellence in user acquisition, AI, and data analytics to drive synergies and improve performance across its studios. * Nazara introduced a new brand identity, “Enter. Magic.”, to reflect its focus on interactive entertainment experiences leveraging AI and other emerging technologies. * Management aims to grow the core gaming business at 20-25% year-on-year with an EBITDA margin in the 20-25% range.
