Nazara Technologies reported Q3 FY26 revenues of INR406 crore, down 24.1% due to the deconsolidation of NODWIN Esports. However, EBITDA surged 29.4% to INR67.8 crore, expanding margins to 16.7%. Management emphasized profitable user acquisition in Kiddopia, strategic investments in the Indian gaming ecosystem, and strong performance from subsidiaries like NODWIN, which returned to profitability.
Q3 FY26 Financial Highlights and Margin Improvement
Nazara Technologies announced its Q3 FY26 results, reporting revenues of INR406 crore, marking a 24.1% decrease year-on-year. This dip was primarily attributed to the deconsolidation of the NODWIN Esports business. Conversely, profitability showed significant strength, with EBITDA reaching INR67.8 crore, an increase of 29.4% over the same period. Consequently, margins expanded substantially to 16.7% as the company sharpened its focus on higher-margin, IP-based gaming operations.
For the nine months ended FY26 (9M FY26), revenue grew by 29.7% YoY to INR1,431.2 crore, while EBITDA saw a 73% YoY increase to INR177.2 crore, resulting in an overall margin of 12.4%.
Segmental Performance Deep Dive
Mobile Gaming and Kiddopia
The mobile gaming segment remains robust, posting revenues of INR534.7 crore (up 48% YoY) and EBITDA of INR99.2 crore (up 43% YoY). CEO Nitish Mittersain noted that Kiddopia successfully returned to subscriber growth this quarter, driven by Centers of Excellence in user acquisition and data analytics. Management confirmed they are acquiring users at profitable CAC and LTV profiles, expecting revenue scale to eventually offset short-term margin dips in the segment.
PC and Console Publishing (Curve Games)
The PC and console publishing segment, represented by Curve, is focused on high-margin IP monetization. Human Fall Flat remains a long-tail seller with 58 million units in lifetime sales. New momentum was seen from Wobbly Life on Switch, exceeding 200,000 units in sales. Stuart Dinsey, CEO of Curve, mentioned investing in five or six new titles signed since acquisition, expected to launch in FY27 and FY28.
Offline Gaming
The offline portfolio delivered healthy profitability with a 36% EBITDA margin in Q3 FY26. Funky Monkey expanded its footprint by four new centers and maintains a target steady-state margin of 35-40%, with a typical payback period of 18 to 24 months per store. Smaaash is currently undergoing a relaunch of its Smaaash 2.0 experience, planned for H1 of the next fiscal year.
NODWIN and Absolute Sports
Associate company NODWIN demonstrated a strong turnaround, reporting Q3 FY26 revenue growth of 58% YoY to INR261 crore and EBITDA profitability of INR40 crore, following the deconsolidation of the non-core German business (Freaks 4U). Akshat Rathee, CEO of NODWIN, detailed the strategy of building sustainable, long-term revenue through marquee IPs like DreamHack and executing major world championships.
In Absolute Sports, Sportskeeda saw a decline due to the March Google core update but has aggressively cut costs (down 32% YoY). Meanwhile, Pro Football Network saw a 58% revenue increase year-to-date.
Capital Allocation and Future Outlook
Nazara continues to focus on disciplined capital allocation. The company holds a net cash position of approximately INR700 crore, which will be deployed for organic growth and undertaking additional M&A, particularly in gaming studios.
For FY27 growth drivers, Nitish Mittersain pointed to:
- Fusebox Games: Revenue growth driven by the launch of new licensed IPs like Big Boss (India) and Big Brother (Global), alongside the existing Love Island.
- Kiddopia: Continued scaling of user acquisition efforts.
- WildWorks: Launching a new hyper-casual game, Go Slinky Go, expected for a public release by the end of Q1 FY27, in addition to the ongoing launch of Animal Jam on Roblox.
The management expressed confidence that focusing on core, IP-driven gaming businesses will see margins rise to beyond 20% within the next two to three quarters.
Source: BSE
