Nazara Technologies Q2 FY26 Financial & Strategic Update

Nazara Technologies has reported its financial results for the second quarter ending September 30, 2025. The company's performance was characterized by strong operational growth, counterbalanced by significant one-time exceptional items related to portfolio restructuring and regulatory changes. Operational & Financial Highlights Robust Revenue Growth: Revenue from operations surged 65% year-over-year (YoY) to ₹526.5 crore, driven by strong performance in the company's core gaming and e-sports verticals. EBITDA Performance: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubled to ₹60 crore from ₹25 crore in the corresponding period last year. Margin Expansion: Operational efficiency improved significantly, with EBITDA margins expanding to 11.4% from 8.0% in Q2 FY25. Reported vs. Adjusted Profit: The company reported a net loss of ₹29.3 crore, compared to a ₹23 crore profit in Q2 FY25. This loss is attributed to a one-time exceptional hit. Excluding exceptional items, the net profit stood at ₹885 crore, aided by a substantial non-operational gain. Analysis of Exceptional Items The quarter's statutory profitability was impacted by two major, non-operational events: Gain on Nodwin Reclassification: Nazara ceased control of Nodwin Gaming Pvt. Ltd. as its stake fell below 50%. This triggered a reclassification of the investment from a subsidiary to an associate. Per Ind AS 110 accounting standards, this required a fair-value remeasurement, resulting in a one-time notional gain of ₹1,098 crore, which was recognized under "Other Income." Impairment on Moonshine Technologies: Following the "Gaming Regulation Act, 2025," which bans online real-money games, the company recorded a full impairment charge of ₹915 crore on its investment in Moonshine Technologies (PokerBaazi) due to the mandated cessation of its business operations.