Nazara Technologies Limited, a diversified gaming and esports company, delivered exceptional financial results in Q1 FY26, with both revenue and profit posting triple-digit growth rates.
The company reported:
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Revenue from Operations: ₹498.77 crore, up 99.44% YoY.
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Profit After Tax (PAT): ₹68.38 crore, up 202.17% YoY.
This stellar performance underscores strong traction across its gaming portfolio, esports ventures, and gamified learning verticals, supported by operational leverage.
1. Financial Performance Overview
Consolidated Q1 FY26 vs Q1 FY25
| Particulars | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 498.77 | 250.08 | +99.44% |
| Profit Before Tax (PBT) | 124.54 | 50.47 | +146.74% |
| Profit After Tax (PAT) | 68.38 | 22.63 | +202.17% |
Key Observations:
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Revenue nearly doubled YoY, driven by growth across gaming and esports verticals.
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PAT growth exceeded revenue growth, indicating significant operating leverage and margin expansion.
Standalone Q1 FY26 vs Q1 FY25
| Particulars | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 20.32 | 7.99 | +154.32% |
| Profit Before Tax (PBT) | 25.30 | 13.03 | +94.16% |
| Profit After Tax (PAT) | 27.61 | 9.63 | +186.71% |
Key Observations:
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Standalone growth is also robust, reflecting stronger monetisation from India operations.
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Standalone PAT growth shows a similar triple-digit trend, in line with consolidated performance.
2. Revenue Drivers
Nazara’s revenue growth in Q1 FY26 is likely supported by:
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Gaming Division: Strong downloads and in-app purchases in casual and interactive games.
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Esports: Expansion of tournament scale and monetisation from sponsorships, broadcasting, and ticketing.
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Gamified Learning: Growth in user base and premium subscriptions.
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International Markets: Increased contribution from North America and Middle East operations.
The company’s diversified revenue model reduces reliance on a single vertical, cushioning against market volatility.
3. Profitability and Margins
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Consolidated PAT Margin: 13.71% in Q1 FY26 vs 9.05% in Q1 FY25 — strong margin expansion.
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PBT Growth: +146.74% YoY, outpacing revenue growth, signalling cost control and better unit economics.
Likely contributors to margin expansion:
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Improved monetisation from premium users and esports IP rights.
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Higher ad revenues from digital streaming platforms.
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Operating efficiency from scaling existing platforms without proportional expense rise.
4. Share Price Performance and Market Reaction
13 Aug 2025 Trading:
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Opening Price: ₹1,451.00
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Current Price: ₹1,421.00 (down ~2.07% intraday despite strong results).
Long-term returns:
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1-Year: +51.40% — outperforming most tech and media peers.
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5-Year: +70.23%.
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Since listing: +70.23% (steady compounding but still prone to volatility).
The mild drop post-results suggests that the market had priced in strong growth, or investors are cautious about sustainability of such rapid expansion.
5. Industry Context
The Indian gaming industry is experiencing exponential growth, fuelled by:
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Increased smartphone penetration.
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Low data costs.
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Rising adoption of esports as mainstream entertainment.
Nazara, as one of the few listed gaming companies in India, benefits from strong brand recall, diverse product offerings, and early-mover advantage in esports.
6. Risk Factors
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Heavy dependence on user engagement — shifts in gamer preferences can impact revenue.
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Regulatory uncertainties around online gaming and in-app monetisation.
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High competition from global gaming giants and domestic startups.
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Currency fluctuations affecting international earnings.
7. Strategic Outlook for FY26
Management is likely to focus on:
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Expanding esports IPs to international markets.
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Acquiring niche gaming studios to diversify genres.
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Enhancing gamified learning platforms for sustainable recurring revenue.
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Leveraging AI-driven analytics to improve user retention and monetisation.
With continued momentum, FY26 could see Nazara crossing new revenue milestones, while further expanding its international footprint.
Conclusion
Nazara Technologies has delivered outstanding Q1 FY26 results, with revenue nearly doubling and profits tripling YoY. This performance reinforces the company’s position as a leading force in India’s gaming and esports industry.
The key challenge ahead will be sustaining this growth trajectory amid increasing competition and evolving regulations. If managed well, Nazara could continue to deliver exceptional shareholder value in the coming quarters.
