Gaming major Nazara Technologies’ consolidated net profit for the fourth quarter of FY26 (Q4 FY26) zoomed multifold to ₹55.7 Cr from ₹4.1 Cr reported in the year-ago period. Sequentially, it increased 533% from ₹8.8 Cr.

However, the company’s operating revenue declined 23.5% to ₹397.8 Cr during the quarter under review from ₹520.2 Cr in Q4 FY25. On a QoQ basis, it declined 2% from ₹406 Cr. 

The decline was primarily due to the deconsolidation of NODWIN Gaming beginning August 2025. Adjusted for the NODWIN impact, Nazara said Q4 revenue grew 8% YoY.

Including other income of ₹50.7 Cr, Nazara’s total income stood at ₹448.5 Cr during the quarter. Meanwhile, total expenses declined sharply to ₹375.5 Cr in Q4 FY26 from ₹509 Cr in the corresponding quarter last year. 

Purchase, content, event and web server costs fell to ₹68 Cr from ₹164 Cr in Q4 FY25, while advertising and promotion expenses declined to ₹111 Cr from ₹151 Cr. Employee benefit expenses also narrowed to ₹70 Cr in Q4 FY26 from ₹80 Cr in the year ago quarter.

For the full FY26, Nazara’s revenue from operations grew 12.6% YoY to ₹1,829 Cr, while profits zoomed 60.8% YoY to ₹82 Cr during the period under review. 

Margin Expansion Drives Profitability 

At the operating level, EBITDA surged 52% to ₹78 Cr in Q4 FY26 from ₹51 Cr a year ago. EBITDA margin also expanded sharply to 19.5% from 9.8% in Q4 FY25. 

On a full-year basis, Nazara reported its highest-ever EBITDA of ₹255 Cr in FY26, up 66% from ₹153 Cr in FY25, while EBITDA margin for the full year improved 450 basis points to 13.9%.

Notably, the gaming segment accounted for 90% of Nazara’s EBITDA in FY26 compared to 56% in FY25, as the company increased its focus on core gaming operations. 

Within gaming, Love Island contributed 27% of gaming revenue in FY26, followed by Kiddopia at 18%, Animal Jam at 10%, Human Fall Flat at 8%, and Smaaash at 7%.

Meanwhile, Nazara’s mobile gaming business reported FY26 revenues of ₹713 Cr and EBITDA of ₹137 Cr. Within this, Fusebox’s narrative gaming business, which includes Love Island and Big Brother, saw revenue jump to ₹318 Cr in FY26 from ₹260 Cr in FY25, while EBITDA increased to ₹68 Cr from ₹60 Cr. 

The company said two new games were launched during the year and a fourth intellectual property (IP), “The Traitors”, is under development for H1 FY27.

Kiddopia returned to growth during the quarter, with revenue rising 8% YoY in Q4 FY26. The company said higher marketing spends impacted short-term EBITDA, but user acquisition efficiency improved as 24-month LTV/CAC rose to 1.89 in Q4 FY26 from 1.67 a year earlier. Subscribers also increased to 2.2 Lakh in Q4 FY26 from 2.1 Lakh in Q3 FY26.

Animal Jam reported FY26 revenue of ₹108 Cr, up 3% YoY, while EBITDA rose 23% to ₹27 Cr. EBITDA margin expanded to 25% from 20.9% in FY25. 

Nazara attributed the margin expansion to LiveOps initiatives, content velocity and integration of its user acquisition and data analytics centres of excellence (COEs).

Nazara’s PC and console publishing business generated FY26 revenue of ₹261 Cr and EBITDA of ₹101 Cr, translating into a margin of about 39.1%. 

The company said Human Fall Flat crossed 58 Mn lifetime units sold globally and sold more than 2 Mn units during FY26. Nazara also extended the title’s licence till 2030.

Its offline gaming business, comprising Smaaash and Funky Monkeys, reported FY26 revenue of ₹99 Cr and EBITDA of ₹27 Cr. Nazara expanded Funky Monkeys from 11 centres in Q1 FY26 to 20 centres by the end of Q4 FY26, while Smaaash 2.0 is currently under development.

Gaming Bets Pay Off 

Highlighting its AI-led gaming strategy, Nazara said that it now embeds AI across the game lifecycle, including development, user acquisition, LiveOps and content generation. It added that World Cricket Championship 4, built with AI across engine, content and QA pipelines, is expected to enter public beta in mid-May 2026.

On the acquisition front, Nazara said the acquisition of Bluetile and BestPlay, its largest M&A transaction to date, will add 17 casual puzzle gaming IPs and 22 Mn monthly active users. The company expects to complete the deal by FY27, subject to regulatory approvals. 

Nazara said the acquisition would significantly scale gaming revenue and EBITDA in the coming fiscal year.

Meanwhile, esports and youth media subsidiary NODWIN Gaming reported FY26 revenue of ₹658 Cr, up 25% YoY, while EBITDA turned positive at ₹21 Cr against a loss of ₹14 Cr in FY25. Nazara said the turnaround was aided by the deconsolidation of loss-making subsidiary Freaks4U and stronger live event execution.

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