Nazara Q3FY26: PAT steady at Rs 8.8 crore; AdTech EBITDA up 26% even as revenue declines

New Delhi: Nazara Technologies reported Q3FY26 revenue of Rs 406 crore, down 24.1% year-on-year due to the deconsolidation of NODWIN, while EBITDA rose 29.4% to Rs 67.8 crore and margins expanded to 16.7%. 

Gaming contributed 63% of Nazara’s total operating revenue at Rs 257 crore, followed by ad tech at 28% (Rs 115 crore), while e-sports accounted for the remaining 8% (Rs 34 crore).

Profit after tax (PAT) from continued operations stood at Rs 8.8 crore for the quarter, compared to Rs 8.6 crore a year ago, according to the company’s investor presentation. 

For the nine months ended December 31, 2025 (9MFY26), Nazara reported revenue of Rs 1,431.2 crore, up 29.7% year-on-year, and EBITDA of Rs 177.2 crore, up 73%. EBITDA margin improved to 12.4% from 9.3%. 

The company said its performance was driven by execution and operating efficiency, with multiple growth engines across new launches, live content expansion and platform extensions. 

Nazara’s advertising and promotion expense stood at Rs 109.1 crore in Q3FY26, compared to Rs 145.4 crore in Q3FY25. For 9MFY26, advertising and promotion were Rs 350.3 crore, up from Rs 225.8 crore in the year-ago period. 

In mobile gaming, the company flagged increased marketing spends to drive future growth, including higher spending on Love Island in December, which it said had an immediate EBITDA impact, and larger user acquisition spending on Kiddopia at lower CPT alongside higher ARPU. 

Nazara’s AdTech business reported Q3FY26 revenue of Rs 115.7 crore, down from Rs 147.9 crore in Q3FY25, but EBITDA increased to Rs 8.8 crore from Rs 7.0 crore, up 26% year-on-year. 

The company attributed the margin improvement to a higher focus on tech-enabled, higher-margin business verticals, while the revenue decline was linked to a reduced focus on low-margin, non-tech managed services. 

For 9MFY26, AdTech revenue rose to Rs 366.9 crore from Rs 197.7 crore, while EBITDA increased to Rs 18.5 crore from Rs 9.5 crore. 

Separately, Nazara’s regulatory filing flagged an impairment loss linked to the prohibition of online money games under the Promotion and Regulation of Online Gaming Act, 2025, which impacted the company’s standalone year-to-date numbers. 

Nazara Technologies has completed a Rs 27.15 crore acquisition of an additional stake in Rusk Media. It has also separately approved a primary capital infusion of up to Rs 15 crore into the company. 

In an exchange filing dated January 30, Nazara stated that it has made a full cash payment of Rs 27,14,91,792 for 4,276 Series A compulsorily convertible preference shares of Rusk Media, representing 5.23% of the company’s share capital on a fully diluted basis. The filing said Nazara’s holding will rise to 7.18% following this acquisition.

Separately, in its Q3FY26 communication, the company said its board has approved a primary capital infusion of up to Rs 15 crore into Rusk Media, alongside an investment in nCore Games, as part of its broader capital allocation into the Indian gaming ecosystem.

Nazara’s January 30 filing said the acquisition was executed under a share purchase agreement dated November 12, 2025, between the company and Nodwin Gaming, an associate of Nazara.

Nitish Mittersain, Joint Managing Director and CEO of Nazara Technologies, said the company 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," Mittersain said.

Mittersain added, "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."