Gaming company Nazara Tech reports Rs 29 crore loss in Q2 FY26; revenue grows 65% to Rs 526 crore

Mumbai-based listed gaming company Nazara Technologies posted a strong operational performance in the second quarter and first half of FY26, even as accounting adjustments tied to India’s new real-money gaming regulations pushed the company into a quarterly loss.

The Mumbai-headquartered firm reported a consolidated net loss of Rs 29.35 crore in Q2FY26, compared with a profit of Rs 23.83 crore a year earlier. The loss stemmed from a significant write-down of its investment in Moonshine Technologies following the government’s ban on online skill-based real-money gaming.

Despite the impairment, Nazara’s operating business continued to expand at a rapid pace across mobile gaming, PC and console publishing, and offline interactive entertainment.

Revenue from operations for Q2 rose 65% year-on-year to Rs 526.46 crore, supported by stronger retention trends, deeper LiveOps engagement, and a steady increase in cross-platform distribution. Sequentially, revenue grew 5.5%.

For H1FY26, the company reported Rs 1,025.2 crore in revenue, up 80.2% from the previous year, while EBITDA climbed 118.5% to Rs 109.4 crore. Mobile gaming remained the largest contributor, led by global franchises such as Love Island, Big Brother, Kiddopia, Animal Jam, and World Cricket Championship.

Nazara’s PC and console publishing business, anchored by enduring global titles including Human: Fall Flat, also delivered steady performance through catalogue monetization and platform expansion. Offline ventures Smaaash and Funky Monkeys recorded profitable growth as well, benefiting from standardized centre formats, rising repeat footfall, and disciplined rollouts.

Nazara has also begun deploying its Centers of Excellence in user acquisition, analytics, AI, and growth across multiple studios, a move that is improving retention, LTV/CAC, and the overall speed of decision-making.

During the quarter, the company ceased to hold a controlling stake in its esports subsidiary Nodwin Gaming, which was converted into an associate entity. The fair-value remeasurement of Nazara’s retained stake generated a one-time gain of Rs 1,098.46 crore, contributing to a sharp rise in other income to Rs 1,104.46 crore, compared with Rs 25.31 crore in the same quarter last year.

Total expenses stood at Rs 534.25 crore, up 66.3% year-on-year. The largest hit came from the regulatory overhaul of the real-money gaming industry. Nazara reduced the carrying value of its stake in Moonshine Technologies to Rs 96.53 crore, resulting in a total impairment of Rs 914.7 crore in Q2.

Moonshine operated platforms including PokerBaazi and other card-based gaming properties that were directly impacted by the new Online Gaming Act. The company said that these are one-time accounting adjustments and do not affect operating cash flows.

Nitish Mittersain, Joint Managing Director and CEO of Nazara Technologies, said that the company continued strengthening its position as a global, IP-led gaming platform.

He highlighted the sharp rise in core gaming revenues and EBITDA, driven by deeper LiveOps engagement, global scale, and strong unit economics across mobile, console, and PC. He added that Nazara is evolving from publishing individual titles to building long-term gaming franchises and that the company’s Centers of Excellence are enhancing operating leverage across the portfolio.

Nazara’s portfolio today spans Curve Games, Kiddopia, Animal Jam, Fusebox Games, World Cricket Championship, and Sportskeeda, in addition to its expanding offline entertainment businesses. Even with the regulatory drag on real-money gaming investments, the company’s core gaming operations continue to gain momentum across global markets.