1.At a Glance
Nazara Technologies Ltd, India’s most flamboyant listed gamer, has dropped its Q2FY26 (September 2025) results — and let’s just say it’s a mix ofLevel Up!andGame Over!in the same breath.Revenue zoomed 65% year-on-year to ₹526 crore, but EBITDA crashed to a negative ₹164 crore, and net profit turned red at ₹34 crore loss. It’s the kind of quarter where your top line’s winning trophies while the bottom line’s respawning.
At ₹275 per share, Nazara commands a ₹10,175 crore market cap — enough to buy every gaming café in Mumbai and still have spare cash for a Nodwin eSports event. The P/E ratio of 11.9x seems attractive, but with negative EBITDA, it’s like judging a gaming console by its loading screen. Promoter holding has jumped sharply to 35.5%, yet 55.9% of that is pledged — a risky combo that could make even a risk analyst reach for holy water.
And speaking of holy, let’s recall a line from theBhagavad Gita: “Yogastha kuru karmani.” Perform your duty with focus, not attachment to results. Nazara seems to have taken this too literally — revenue focus ✅, profit attachment ❌.
2.Introduction
Nazara Technologies is India’s digital playground operator — a listed hybrid of YouTube, Dream11, and your childhood summer vacations. It started with mobile games, expanded into eSports and gamified learning, and now manages an empire spanning India, Africa, and North America.
You might know them through their crown jewels —WCC (World Cricket Championship),CarromClash,Kiddopia,Nodwin Gaming,Sportskeeda,Halaplay, andQunami. Each brand targets a different tribe: from toddlers learning shapes to adults arguing about cricket stats at midnight.
Nazara’s journey has been one long side quest — first into fantasy gaming, then into early learning apps, then eSports, and finally into shareholder psychology. Because who else gives you a1:1 bonus issue, astock split (₹4 to ₹2), a newExecutive Director (Rohit Sharma), and afresh ₹510 crore capital raise— all in one fiscal year?
If corporate India had an achievement system, Nazara would have unlocked “Financial Juggler – Platinum Tier.”
3.Business Model – WTF Do They Even Do?
Nazara calls itself a“diversified gaming and sports media platform.”That’s fancy talk for a business built like a gaming console with five ports plugged in:
- Mobile Gaming– Flagships likeWorld Cricket ChampionshipandCarromClashdominate casual gaming in India. These are Nazara’s OG cash cows — steady engagement, though not explosive monetization.
- Gamified Learning (Kiddopia)– The U.S.-based Kiddopia app teaches kids through games. Think of it asPeppa Pig meets algebra.
- eSports (Nodwin Gaming)– Organizes tournaments and manages gaming influencers. India’s digital IPL.
- Sports Media (Sportskeeda)– Your one-stop scroll hole for cricket and eSports news.
- Skill, Fantasy & Trivia (Halaplay, Qunami)– Once the fantasy gaming hope, now de-emphasized post the Online Gaming Act.
Nazara’s model is simple:acquire niche IPs, integrate them, and monetize across geographies. The company’s not just selling games; it’s sellingthe culture of gaming. If Reliance Jio connected India’s phones, Nazara’s trying to connect its gamers.
But there’s a flip side — integration costs, regulatory risks, and wildly different monetization models mean that while revenue rises, profits often AFK (Away From Keyboard).
4.Financials Overview
| Metric (₹ Cr) | Latest Qtr (Sep’25) | YoY Qtr (Sep’24) | Prev Qtr (Jun’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 526 | 319 | 499 | +65.1% | +5.4% |
| EBITDA | -164 | 24 | 23 | Loss vs Profit | -813% |
| PAT | -34 | 16 | 51 | Loss vs Profit | -167% |
| EPS (₹)** | -0.79 | 0.72 | 1.85 | N/A | N/A |
(Annualised EPS = latest EPS × 4 = -₹3.16; P/E not meaningful for negative EPS.)
Commentary:Nazara’s top line continues to grow at esports tournament speed, but costs — particularly content and staff expenses — have ballooned faster. The EBITDA crash and PAT loss came after impairment charges, reflecting the real-money gaming shutdowns and write-offs. For now, revenue’s the hero, profitability’s the NPC (Non-Playable Character).
5.Valuation Discussion – Fair Value Range Only
Let’s calculate fair value using three methods —P/E,EV/EBITDA, andDCF— and no hopium.
A. P/E MethodFY25 EPS = ₹2.14; Current Price = ₹275 → P/E ≈ 128x.Industry average = 23.7x.Applying sector discount, fair range =₹90–₹120/share.
B. EV/EBITDAEV = ₹10,143 Cr; EBITDA (TTM) = -₹75 Cr → metric meaningless; hence, valuation basis weak until turnaround.
C. DCF (for educational intent)Average 3-year OCF = ₹55 Cr; growth 8%; WACC 10%.Intrinsic EV ≈ ₹1,400–₹1,800 Cr → Equity Value per share =₹75–₹100.
📘Fair Value Range (Educational Purposes Only): ₹75–₹120/shareDisclaimer: This is for learning only, not investment advice.
6.What’s Cooking – News, Triggers, Drama
Nazara’s corporate kitchen has been busier than a LAN café before a Dota tournament.
- 1:1 Bonus + Stock Split– The September 2025 bonus issue doubled share count, face value halved to ₹2. Why? Because everyone loves free shares more than free DLCs.
- Rohit Sharma Joins as Executive Director– From the crease to the conference room, Nazara adds star power to its board. Maybe he’ll help them bat out of this profit slump.
- Rusk Media Investment (₹27.14 Cr)– Expanding into gaming content and youth entertainment. Because memes drive engagement faster than marketing teams.
- Moonshine’s Real-Money Exit– Following the Online Gaming Act, Nazara diluted its stake in Moonshine, eliminating regulatory baggage.
- Nodwin Deconsolidation– Company to dilute below 50%, turning it into an associate — unlocking flexibility without losing visibility.
- Capital Raise ₹510 Cr– ₹476 Cr still unutilized
