The company attributed the decline in revenue primarily to the deconsolidation of its esports and events arm, Nodwin Gaming, which was de-subsidiarised last year. In the corresponding quarter of the previous fiscal, Nodwin had contributed Rs 165 crore to Nazara’s consolidated revenue, which was absent in the current quarter.
Despite the YoY decline, the company returned to profitability on a sequential basis, reporting a profit in Q3 after posting a net loss of Rs 34 crore in Q2FY26. The Q2 loss was largely driven by an impairment charge on Nazara’s investment in Moonshine Technologies, the parent of PokerBaazi, following the regulatory ban on real-money gaming.
Strong 9MFY26 performance
For the nine months ended FY26 (9MFY26), Nazara reported a strong performance, with revenue rising 29.7% year-on-year to Rs 1,431.2 crore, while EBITDA surged 73% YoY to Rs 177.2 crore. The robust growth translated into a marked improvement in profitability, with EBITDA margins expanding to 12.4% during the period.
The company’s flagship kids’ learning app, Kiddopia, saw a long-awaited revival in subscriber growth, supported by Nazara’s Centres of Excellence across user acquisition, data analytics, growth and product development.
Nazara also continued to expand its intellectual property (IP) portfolio, including the launch of Animal Jam on Roblox, unlocking new platform-led growth opportunities. Associate company NODWIN Gaming delivered a strong operational performance and remained profitable during the quarter.
Management commentary
Commenting on the results, Joint Managing Director and CEO Nitish Mittersain said the company continues to make steady progress towards building a global gaming platform. He highlighted disciplined execution, improving operating efficiency and multiple growth drivers across new launches, live content expansion and platform extensions. He also reiterated Nazara’s focus on disciplined capital allocation and strategic acquisitions to drive long-term value creation.
Nazara Technologies shares ended Tuesday’s session 1.54% higher at Rs 284.60 on the NSE. The company announced its quarterly earnings after market hours
On the technical front, the 14-day RSI stands at 59.6, indicating neutral-to-positive momentum and remaining well below overbought levels. The stock is trading above six of its eight key simple moving averages, signalling a bullish near-term trend.
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