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Nazara Technologies has delivered one of its strongest financial performances yet, signaling a major shift in the scale and maturity of India’s gaming industry.
The company, which remains India’s only publicly listed gaming firm, reported audited financial results for the financial year ending March 31, 2026, posting record revenue, sharply improved profitability, and strong operating cash flow as its gaming-focused strategy continues to gain momentum globally.
Nazara reported FY26 revenue of ₹1,829 crore, while EBITDA surged 66% year-on-year to an all-time high of ₹255 crore. The company also generated pre-tax operating cash flow of ₹213 crore, marking an 81% increase compared to FY25 and reflecting an impressive EBITDA-to-cash conversion ratio of 84%.
The results underline how Nazara has evolved from a diversified digital entertainment business into a focused global gaming platform.
Gaming Becomes the Core Growth Engine
One of the biggest highlights from Nazara’s FY26 performance was the growing dominance of its gaming business.
Gaming contributed nearly 90% of total EBITDA in FY26, up significantly from 56% in FY25. The sharp increase came as the company strategically reduced exposure to lower-margin adjacent businesses and concentrated resources on scaling high-growth gaming assets.
Speaking on the company’s transformation, Nitish Mittersain said:
“FY26 was a pivotal year for Nazara. We delivered our highest-ever EBITDA at ₹255 crore, with EBITDA growing 66% year-on-year and Q4 EBITDA margins reaching 19.5%. Nazara today operates at a materially different scale than it did 12 months ago.”
He added that operating leverage across the business is now becoming visible and compounding rapidly, with the company now focused on expanding its gaming ecosystem globally.
Strong Q4 Performance Boosts Investor Confidence
Nazara ended FY26 on a high note with a particularly strong fourth quarter.
For Q4 FY26, the company reported:
- Revenue of ₹398 crore
- EBITDA of ₹78 crore
- EBITDA margin of 19.5%
- Consolidated net profit of ₹55.7 crore
The quarterly EBITDA grew 52% year-on-year, while margins expanded nearly 970 basis points compared to the same quarter last year.
Perhaps even more notable was the surge in quarterly net profit. Nazara’s consolidated profit jumped from just ₹4.1 crore in Q4 FY25 to ₹55.7 crore in Q4 FY26, showcasing a sharp improvement in operational efficiency and monetization.
Standalone Loss Driven by Exceptional Charges
Despite strong operational performance, Nazara reported a standalone loss of ₹934 crore for FY26, compared to a profit of approximately ₹28 crore in the previous financial year.
However, the company clarified that the decline was largely due to exceptional items, including a substantial impairment charge related to its investment in an associate company.
Analysts note that this loss does not reflect deterioration in the core gaming business, which continues to expand profitably at the consolidated level.
Nazara Bets Big on Acquisitions
A key pillar of Nazara’s FY26 strategy was aggressive expansion through acquisitions.
During the year, the company completed the acquisition of Bluetile and BestPlay, which Nazara described as its largest merger and acquisition deal to date.
The acquisition significantly strengthens Nazara’s mobile gaming portfolio by adding:
- 17 casual mobile gaming intellectual properties (IPs)
- 22 million monthly active users
The company stated that the full financial impact of the acquisition will become more visible in FY27 once the acquired entities are fully integrated into Nazara’s consolidated financial statements.
This move aligns with Nazara’s broader strategy of building a scalable global gaming platform through both organic growth and targeted acquisitions.
Existing Gaming IPs Continue to Perform
Nazara’s existing portfolio of gaming assets also showed strong momentum during FY26.
Kiddopia Gains Subscriber Momentum
Kiddopia, Nazara’s subscription-based learning and gaming app for children, recorded subscriber growth for the second consecutive quarter.
The company also highlighted improvements in unit economics, indicating stronger monetization and retention trends within the platform.
Animal Jam Expands to Roblox
Animal Jam continued to improve margins while also expanding onto Roblox, opening access to a massive global gaming audience.
The move demonstrates Nazara’s increasing focus on cross-platform distribution and community-driven gaming ecosystems.
Fusebox Scales Narrative Gaming Engine
Fusebox, Nazara’s narrative gaming studio focused on reality television-based content, successfully scaled its storytelling engine across multiple entertainment IPs.
The company also confirmed additional launches planned for FY27, suggesting further expansion into interactive entertainment and mobile narrative gaming.
Human Fall Flat Hits Major Milestone
On the PC and console side, Human: Fall Flat crossed 58 million lifetime units sold globally.
The milestone reinforces Nazara’s growing presence in premium international game publishing, an area traditionally dominated by Western gaming companies.
Building a Global Gaming Infrastructure
Beyond individual games, Nazara has also invested heavily in building platform-wide operational capabilities.
The company has established what it calls “Centres of Excellence” across areas such as:
- User acquisition
- Data analytics
- Artificial intelligence
- Product development
- Growth optimization
These centralized systems are designed to support every gaming property Nazara owns and help newly acquired studios scale faster.
This infrastructure-focused approach mirrors strategies used by global gaming giants, where shared technology, analytics, and monetization tools improve efficiency across multiple game studios and titles.
Board Strengthened with Industry Veterans
Alongside its financial results, Nazara announced two major board appointments aimed at strengthening strategic oversight and long-term governance.
Mithun Sacheti has joined the company as a Non-Executive Director. Sacheti is widely recognized for building CaratLane into one of India’s leading digital-first jewellery brands.
Meanwhile, Muraarie Rajan has been appointed as an Independent Director. Rajan brings more than 35 years of experience in global M&A and strategic advisory.
The appointments suggest Nazara is preparing for larger-scale international expansion and more sophisticated deal-making in the years ahead.
India’s Gaming Industry Enters a New Phase
Nazara’s FY26 performance reflects a broader transformation underway in India’s gaming ecosystem.
What was once considered a niche entertainment segment is now evolving into a serious global business opportunity driven by mobile adoption, digital payments, AI-powered gaming experiences, and rising global demand for interactive content.
With record EBITDA, expanding global IP ownership, strong cash generation, and an increasingly international gaming portfolio, Nazara Technologies appears to be positioning itself as one of the most important gaming companies to emerge from India.
And if FY26 is any indication, the company’s next phase may be far bigger than just the Indian market.