Nazara revenue and profit double in Q1 FY26

Gaming and sports media firm Nazara Technologies reported a 99.6% year-on-year rise in operating revenue for Q1 FY26. Moreover, the Mumbai-based company’s profit doubled at Rs 51 crore in the first quarter of the ongoing fiscal year.

Nazara’s operating revenue rose by 99.6% to Rs 499 crore in Q1 FY26 from Rs 250 crore in Q1 FY25, according to its unaudited financial statements sourced from the National Stock Exchange (NSE).

E-sports accounted for 31% (Rs 154 crore) of the company’s total operating revenue, while the gaming segment held 48% share (Rs 241 crore), followed by ad tech, which contributed 21% (Rs 104 crore).

Nazara also earned Rs 77 crore from interest and gains on financial assets during the quarter, bringing its overall revenue to Rs 576 crore. On a quarter-on-quarter basis, Nazara’s operating revenue decreased 4% to Rs 499 crore in Q1 FY26 from Rs 520 crore in Q4 FY25.

On the line of scale, Nazara’s total expenses surged by 116% to Rs 521 crore in Q1 FY26, compared to Rs 241 crore in the same quarter last year. Content cost stood at Rs 123 crore, while employee benefit expenses rose to Rs 94 crore. Notably, marketing expenses saw a sharp 3X jump, reaching Rs 125 crore in Q1 FY26.

With revenue doubling in the quarter, the company’s profit doubled to Rs 51 crore in Q1 FY26 out of which Rs 15 crore were profit from discontinued operations. On a unit basis, the company spent Rs 1.04 to earn a Rupee of operating revenue with EBITDA of Rs 100 in Q1 FY26.

Recently, Nazara Technologies gave up majority control in Nodwin Gaming by skipping its funding round, reducing its stake below 50%. The move, approved by shareholders, reclassified Nodwin as an associate company, though Nazara remained its largest shareholder.

At the end of the day, Nazra’s share was trading at Rs 1,418 with a total market capitalization of Rs 13,132 crore (approximately $1.5 billion).