Nazara Technologies Q4 FY26 Results: Net Profit Jumps 14x to ₹55.7 Crore, Gaming Segment Powers Record EBITDA

By Kaushik Brahmakshatriya

Published On 04 June 2026.

Nazara Technologies Q4 FY26 Results

Introduction

India’s only publicly listed gaming company, Nazara Technologies (NSE: NAZARA), has delivered a landmark set of numbers for the fourth quarter of Financial Year 2026 (Q4 FY26, period ended March 31, 2026). The company reported a consolidated net profit of ₹55.7 crore — a stunning 14-times jump compared to ₹4.1 crore in the same quarter last year. While the top line showed a decline due to the de-consolidation of Nodwin Gaming from August 2025, the quality of earnings improved dramatically. EBITDA margins hit 19.5%, their highest level in the company’s listed history.

Let’s break down every important number, segment performance, and what it means for investors.

Nazara Technologies Q4 FY26: Key Financial Highlights

Q4 FY26 Standalone Financial Summary

Financial Metric	Q4 FY26	Q4 FY25	YoY Change
Revenue from Operations	₹1,829 Cr	₹1,623.90 Cr	+13.0%
EBITDA	₹255 Cr	₹153 Cr	+66.0%
Pre-Tax Operating Cash Flow	₹213 Cr	₹117 Cr	+81.0%
EBITDA to OCF Conversion	84%	76%	+8 ppts
Net Profit (PAT)	₹213 Cr	₹51.00 Cr	+60.6%
EBITDA to OCF Conversion	84%	76%	+8 ppts
Profit (PAT)	₹81.90 Cr	₹51.00 Cr	+60.6%
Gaming % of Total EBITDA	90%	56%	+34 ppts

For the full financial year FY26, Nazara posted its highest-ever EBITDA of ₹255 crore, growing 66% year-on-year. Pre-tax operating cash flow touched ₹213 crore, up 81% — an 84% EBITDA-to-cash conversion rate that signals strong earnings quality in the core business.

Annual revenue grew 13% to ₹1,829 crore, comfortably crossing the ₹1,800 crore milestone. The company’s net profit for FY26 stood at ₹81.9 crore, up from ₹51 crore in FY25.

Segment-Wise Performance: Gaming Dominates, Esports Contracts

Q4 FY26 Segment Revenue Breakdown

Business Segment	Q4 FY26 Revenue	Q4 FY25 Revenue	YoY Change	% of Q4 Revenue
Gaming	₹278 Cr	₹156 Cr	+78.2%	70%
AdTech (Datawrkz)	₹89 Cr	₹148 Cr	-40.0%	22%
Esports	₹32 Cr	₹216 Cr	-85.0%	8%
Total	₹397.78 Cr	₹520.20 Cr	-23.5%	100%

The gaming segment delivered an exceptional performance, with revenues nearly doubling — up 78.2% year-on-year to ₹278 crore. This includes contributions from flagship titles and global platforms such as World Cricket Championship (WCC), Curve Games, Kiddopia, Animal Jam, and Fusebox Games.

The sharp drop in esports revenue (down 85% to ₹32 crore) is primarily a result of the de-consolidation of Nodwin Gaming, Nazara’s esports subsidiary. Nodwin was removed from Nazara’s consolidated financials from August 2025 onwards. For the full year FY26, the gaming contribution to total EBITDA jumped from 56% in FY25 to 90%, making Nazara almost purely a gaming-first company in terms of profitability.

AdTech revenues for the full year FY26 rose 32% to ₹454 crore from ₹346 crore in FY25, though Q4 specifically saw a decline due to seasonality and business restructuring.

Key Positives: What Worked in Q4 FY26

1.Margin Expansion is Real and SustainableEBITDA

margins at 19.5% in Q4 FY26 represent a structural improvement, not a one-time benefit. Total expenses fell 28.8% year-on-year as content costs, platform fees, and commissions were rationalized. Content and event costs reduced from ₹125.4 crore to ₹64.8 crore; platform fees dropped from ₹79.9 crore to ₹37.2 crore.

2. Gaming Segment Scaling Globally

The gaming segment’s 78.2% growth in Q4 is the standout highlight. Nazara’s global gaming platform — spanning mobile games, browser games, and kids’ gaming — is scaling effectively. WCC and Animal Jam continue to drive engagement across international markets.

3. Cash Flow Strength

An 84% EBITDA-to-OCF conversion ratio is exceptionally healthy for a technology and media company. This means Nazara is genuinely converting profits into cash, not just reporting book gains.

Key Concerns: What Investors Should Watch

Despite the strong profitability story, a few areas warrant caution. Revenue at ₹397.78 crore was the lowest quarterly revenue in recent periods, declining 23.5% year-on-year. While this is partly structural (Nodwin de-consolidation), the underlying decline in AdTech and esports needs monitoring.

Additionally, Nazara recognized a ₹914.7 crore impairment on its investment in Moonshine Technology (its associate in the real-money gaming space), triggered by the enactment of the Promotion and Regulation of Online Gaming Act, 2025. This led to a standalone loss of ₹934 crore for FY26, a sharp reversal from the ₹28 crore profit reported in FY25 on a standalone basis.

Quarterly net profit performance has also been erratic — from ₹68.38 crore in Q1 FY26, to a loss of ₹29.35 crore in Q2 FY26, then recovering to ₹8.8 crore in Q3 and ₹55.7 crore in Q4. This kind of swing raises questions about earnings consistency.

Management Commentary

Nitish Mittersain, Founder, CEO & Joint MD of Nazara Technologies, remarked:”FY26 was a pivotal year for Nazara.

We delivered our highest-ever EBITDA at ₹255 crore, with EBITDA growing 66% year-on-year and Q4 EBITDA margins reaching 19.5%. Nazara today operates at a materially different scale than it did 12 months ago. The scale, quality and earnings capacity of the platform have expanded significantly. Operating leverage is real, and it is compounding.”

Frequently Asked Questions (FAQ)

Q1. What was Nazara Technologies’ net profit in Q4 FY26?

Nazara Technologies reported a consolidated net profit of ₹55.7 crore in Q4 FY26, compared to ₹4.1 crore in Q4 FY25 — a growth of over 14 times year-on-year.

Q2. Why did Nazara’s Q4 FY26 revenue decline despite profit growth?

Revenue from operations fell 23.5% year-on-year to ₹397.78 crore, primarily due to the de-consolidation of Nodwin Gaming from August 2025. The esports segment, which was previously consolidated, no longer contributes to Nazara’s top line. Adjusting for this structural change, the core gaming business actually grew strongly.

Q3. What was Nazara’s EBITDA margin in Q4 FY26?

EBITDA margins for Q4 FY26 stood at 19.5%, up by nearly 970 basis points compared to the same quarter last year — the highest quarterly margin in the company’s listed history.

Q4. How did Nazara’s gaming segment perform in Q4 FY26?

The gaming segment was the star performer, contributing 70% of quarterly revenue at ₹278 crore — a jump of 78.2% year-on-year from ₹156 crore in Q4 FY25.

Q5. What is the full-year FY26 revenue of Nazara Technologies?

Nazara reported full-year FY26 revenue of ₹1,829 crore, up 13% from ₹1,623.9 crore in FY25. Full-year EBITDA reached a record ₹255 crore, growing 66% year-on-year.

Q6. What was the impact of the Online Gaming Act on Nazara’s financials?

Nazara recorded a ₹914.7 crore impairment charge on its investment in Moonshine Technology (an associate in real-money gaming) due to the Promotion and Regulation of Online Gaming Act, 2025. This impacted standalone results but did not affect consolidated operational earnings.

Q7. Is Nazara Technologies a good stock to buy after Q4 FY26 results?

Investors should conduct thorough due diligence before making any investment decision. While margin expansion and gaming growth are positives, revenue decline and profit volatility are risk factors. This article is for informational purposes only and does not constitute investment advice.

Conclusion

Nazara Technologies Q4 FY26 results tell a story of a company in deliberate transformation. Revenue declined on the surface, but that headline number conceals a powerful underlying shift — the company has shed lower-margin businesses, scaled its global gaming platform dramatically, and delivered its best-ever EBITDA margins. With gaming now contributing 90% of EBITDA and operating cash flow conversion at 84%, Nazara is building a leaner, more profitable business.

Whether the company can reverse top-line momentum while sustaining margin quality will be the key test for FY27. For investors tracking India’s gaming sector, Nazara remains the only listed pure-play gateway to this emerging opportunity.

Disclaimer: This article is published for informational and educational purposes only. The financial data mentioned is sourced from publicly available NSE filings and company press releases. This does not constitute investment advice, buy/sell recommendations, or financial guidance. Please consult a SEBI-registered investment advisor before making any stock market investment decisions.