Nazara Tech Q3 Results: Margin more than doubles YoY; profit, revenue decline

Nazara Technologies Ltd reported mixed financial performance for the December quarter, with headline profit and revenue coming under pressure, while operating metrics showed a sharp improvement.

The gaming

company’s net profit declined 35.8% year-on-year to ₹8.8 crore, compared with ₹13.7 crore in the same quarter last year. Revenue fell 24% to ₹406 crore from ₹534.7 crore a year ago, reflecting moderation across parts of its portfolio.

However, operating performance strengthened significantly during the quarter. EBITDA surged 80.7% year-on-year to ₹67.4 crore, up from ₹37.3 crore, supported by tighter cost controls and improved execution. EBITDA margin expanded sharply to 16.6% from 7% a year ago, signalling better operating leverage.

Operationally, Kiddopia saw a long-awaited return to subscriber growth, driven by Nazara’s Centres of Excellence in user acquisition, data analytics, growth and product development. The company also expanded its intellectual property footprint, including Animal Jam on Roblox, unlocking new platform-led growth opportunities. Associate company NODWIN Gaming delivered strong operational performance and profitability during the quarter.

The board approved a fresh investment in nCore Games, the developer of made-in-India franchise FAU-G, and a primary capital infusion of up to ₹15 crore into Rusk Media, reinforcing Nazara’s focus on nurturing the domestic gaming ecosystem.

Commenting on the performance, Joint Managing Director and CEO Nitish Mittersain said the quarter reflected disciplined execution, improving operating efficiency and progress across multiple growth engines, with a continued focus on strategic capital allocation.

Ahead of the earnings announcement, shares of Nazara Technologies closed 1.64% higher at ₹284.90 on the NSE.