Nazara Technologies shares in focus after Q4 revenue nearly doubles; net profit surges to Rs 4 crore

Shares of online gaming company Nazara Technologies will be in focus on Tuesday after the firm reported a 95% year-on-year (YoY) jump in operating revenue to Rs 520.2 crore in Q4FY25, even as total expenses surged due to higher marketing and employee costs.

The company posted a net profit of Rs 4 crore for the quarter ended 31 March, up from Rs 0.18 crore in the year-ago period.

In the post-earnings call, CEO Nitish Mittersain said Nazara expects a higher contribution from its high-margin gaming businesses in FY26, which should drive further profitability. The company also plans to expand its global publishing business through acquisitions such as Curve Games and Fusebox, along with continued organic growth.

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Expenses and segment performance

Total expenses rose 85% YoY to Rs 527.7 crore in the March quarter, driven largely by a threefold increase in advertising and promotional spend, which surged to Rs 151.03 crore. Employee benefit expenses also climbed 80.7% to Rs 79.9 crore.

The esports division remained Nazara’s largest revenue contributor, posting a 47% YoY growth. Gaming revenue rose 72% to Rs 156.4 crore, and the adtech vertical also reported gains.

For the full financial year FY25, Nazara posted a 42.6% increase in operating revenue to Rs 1,623.9 crore from Rs 1,138.2 crore. However, net profit declined 31.8% to Rs 50.9 crore. The company recorded its highest-ever annual EBITDA at Rs 153.5 crore.

Acquisition push

Nazara continues to raise capital to fund both organic growth and strategic acquisitions. As reported by ET on 18 April, the company has earmarked Rs 800–1,000 crore for inorganic expansion in FY26, targeting international gaming studios with strong IPs and annual revenue of around Rs 100 crore.

On 20 May, Nazara completed its largest international acquisition by acquiring UK-based PC and console game publisher Curve Games for Rs 247 crore.

Other acquisitions include Fusebox Games (UK), Moonshine Technology (parent of PokerBaazi), Comic Con India, marketing firm Publishme (focused on West Asia and Turkey), Branded (Singapore), Ninja Global (Turkey), and Paper Boat Apps, creator of Kiddopia.

Earlier this month, the National Company Law Tribunal (NCLT) approved Nazara’s resolution plan to acquire Smaaash Entertainment, backed by Sachin Tendulkar, which was undergoing insolvency proceedings under the IBC.

In January, Plutus Wealth Management founder Arpit Khandelwal and CaratLane founder Mithun Sacheti together invested Rs 495 crore in Nazara via Axana Estates LLP, triggering a mandatory open offer. The preferential allotment at Rs 990 per share gave Axana a 5.4% stake, and the Competition Commission of India (CCI) approved the deal last week.

Nazara Technologies share price target

According to Trendlyne, the average target price for Nazara Technologies is Rs 979, indicating a downside of nearly 23% from current levels. Of the 11 analysts tracking the stock, the consensus rating is ‘Hold’.

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