Indian gaming company Nazara’s revenue declines 24% to Rs 406 crore in Q3 FY26

Nazara Technologies Limited announced its financial results for the third quarter and nine months ended December 2025.

For Q3 FY26, Nazara posted operating revenue of Rs 406 crore, down 24% from Rs 535 crore in the same quarter last year.

The company, however, reported EBITDA of Rs 67.8 crore for the quarter, up 29.4% year-on-year, with margins expanding to 16.7%, reflecting lower costs and improved operating efficiency.

Nazara returned to profitability after reporting a loss in the previous quarter following write-offs, although net profit declined 36% year-on-year to Rs 9 crore in Q3 FY26, compared with Rs 14 crore in Q3 FY25.

Including non-operating income of Rs 11 crore, total revenue stood at Rs 417 crore in Q3 FY26, compared with Rs 557 crore a year earlier. By segment, gaming contributed 63% of operating revenue, or Rs 257 crore, while ad tech accounted for 28%, or Rs 115 crore. Esports contributed 8%, or Rs 34 crore.

Cost discipline remained a key driver during the quarter. Total expenses fell 24% year-on-year to Rs 402 crore in Q3 FY26 from Rs 531 crore in Q3 FY25. Content costs stood at Rs 81 crore, while employee benefit expenses declined to Rs 72 crore. Marketing was the largest cost head, accounting for 27% of total expenses at Rs 109 crore.

For the nine-month period ended December 2025, Nazara reported revenue growth of nearly 30% to Rs 1,431 crore, compared with Rs 1,104 crore in the corresponding period last year. EBITDA for the nine months rose 73% year-on-year to Rs 177.2 crore, with margins expanding to 12.4%, underscoring the company’s focus on scale and operating leverage.

Operationally, the company said its children’s learning app Kiddopia resumed subscriber growth during the quarter, supported by Nazara’s Centres of Excellence in user acquisition, data analytics, growth, and product. The company also expanded its intellectual property footprint, including Animal Jam on Roblox, aimed at unlocking platform-led growth. Associate company NODWIN Gaming reported strong operational performance and profitability during the quarter.

During Q3 FY26, Nazara’s board approved additional investments to deepen its presence in the Indian gaming and content ecosystem. This included an investment in nCore Games, the developer of the made-in-India gaming franchise FAU-G, and a primary capital infusion of up to Rs 15 crore into Rusk Media, a mobile-first, IP-led entertainment platform focused on Gen Z and Gen A audiences.

Commenting on the performance, Nitish Mittersain, Joint Managing Director and CEO of Nazara Technologies, said, “Nazara continued to make strong progress in building a global gaming company. The quarter was driven by disciplined execution, improving operating efficiency, and multiple growth engines across new launches, live content expansion, and platform extensions. We remain focused on disciplined capital allocation, including through strategic acquisitions where Nazara’s operating platform can accelerate scale, improve unit economics, and drive long-term value creation.”