Nazara’ Q3 FY26 revenue declines 24% to Rs 406 Cr; profit down 36%

Gaming and sports media firm Nazara Technologies reported a 24% year-on-year fall in its operating revenue for Q3 FY26. However, the company has regained profitability after booking loss in last quarter due to write off. 

Nazara’s operating revenue fell to Rs 406 crore in Q3 FY26 from Rs 535 crore in Q3 FY25, according to its unaudited financial statements sourced from the National Stock Exchange (NSE).

E-sports accounted for 8% (Rs 34 crore) of the company’s total operating revenue, while the gaming segment held 63% share (Rs 257 crore), followed by ad tech, which contributed 28% (Rs 115 crore).

Nazara booked Rs 11 crore under non-operating income bringing its overall revenue down to Rs 417 crore in Q3 FY26 from Rs 557 crore in Q3 FY25. For the nine-month period, the company’s revenue increased by 30% to Rs 1,431 crore from Rs 1,104 crore, a year earlier

On the line of scale, Nazara’s total expenses fell by 24% to Rs 402 crore in Q3 FY26, compared to Rs 531 crore in the same quarter last year. Content cost stood at Rs 81 crore, while employee benefit expenses fell to Rs 72 crore. Notably, marketing expenses was the largest cost center, accounting for 27% of the total cost at Rs 109 crore in Q3 FY26.

The company’s net profit decreased 36% to Rs 9 crore in Q3 FY26 as compared to a profit of Rs 14 crore in Q3 FY25.

In the third quarter, SBI Mutual Fund sold 45,09,360 Nazara shares worth Rs 108 crore. This trimmed its stake in Nazara from 5.78% (2.14 crore shares) to 4.55% (1.69 crore shares).

At the end of the day, Nazra’s share was trading at Rs 285 with a total market capitalization of Rs 10,554 crore (approximately $1 billion).