Nazara Technologies Sees 54% Surge in Q1 Profit, Driven by Gaming Growth and Strategic Moves

Financial Highlights

Nazara posted revenue of ₹4.988 billion ($56.76 million) for the quarter ending June 30, 2025, nearly doubling from ₹2.5008 billion ($28.46 million) in the same period last year. Despite a sequential dip of 4.8% from the March quarter, the company delivered solid profitability metrics:

• EBITDA surged 90% YoY to ₹474 million (~$5.4 million)
• Pre-tax profit rose to ₹306.2 million (~$3.49 million)
• Net profit climbed 54% YoY
• Core gaming EBITDA margin stood at 24.4%
• Profit after tax reached ₹513 million (~$5.84 million), up 118% YoY

Segment Performance

• Gaming led the charge with ₹2.4092 billion ($27.43 million) in revenue and ₹181 million ($2.06 million) in profit.
• Esports generated ₹1.5414 billion ($17.54 million) but reported a loss of ₹243.5 million ($2.77 million).
• Ad tech contributed ₹1.0606 billion (~$12.08 million).

Key growth drivers included Fusebox Games, Animal Jam, and Curve Games, supported by the company’s data and user acquisition centers of excellence.

Corporate Actions to Boost Shareholder Value

Nazara’s board approved two key measures:

• A stock split, reducing the face value of shares from ₹4 to ₹2
• A bonus issue, granting one bonus share for every share held post-split

Strategic Acquisitions and Investments

• Curve Digital Entertainment: Nazara UK completed a $29.55 million acquisition
• Sportskeeda: Acquired ITR Wrestling and TJR Wrestling IPs for $1.25 million
• AFK Gaming: Nodwin Gaming acquired a 92.3% stake for $860,000
• STAN investment: Nazara Dubai committed up to $1 million for a 1.54% stake in Singapore-based Getstan Technologies

CEO Nitish Mittersain emphasized the success of Nazara’s IP-first approach:

“We’re reinvesting the momentum from our early wins in IP-based gaming into expanding our portfolio and strengthening user acquisition.”

Strengthening Leadership

Nazara appointed Rohit Sharma as Executive Director. With over 25 years in gaming and digital media, Sharma previously founded POKKT Mobile Ads, later acquired by Japan’s AnyMind Group, where he served as global COO and board member.

Global Reach and Product Portfolio

Operating across India, North America, and other global markets, Nazara’s offerings include Curve Games, Kiddopia, Animal Jam, Fusebox Games, World Cricket Championship, and Sportskeeda. Offline gaming is represented by Funky Monkeys and Smaash Entertainment, while Datawrkz leads its digital adtech business.

Tax Disputes

Nazara disclosed ongoing disputes over goods and services tax involving some subsidiaries. The total tax notices exceed ₹11.87 billion (~$1.35 billion), but the company maintains that no liabilities are expected from these proceedings.