Nazara Tech shares zoom over 9% despite Q2 loss of ₹33.9 crore, revenue soars 65% YoY; check numbers

The stock was trading 7.73% higher at ₹277.20 per equity share as of 1:19 pm.

Nazara Tech Q2 results

The surge in the scrip comes despite the company reporting a consolidated net loss of ₹33.93 crore during the quarter under review, compared to a profit of ₹16.24 crore in the September quarter of the 2024-25 fiscal year (Q2FY25).

The company stated that the loss was caused by a one-time impairment of ₹914.70 crore on its investment in associate company Moonshine Technologies, which operates PokerBaazi, due to the prohibition on offering online money games following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

“Nazara’s stake in Nodwin Gaming reduced below 50%, resulting in the de-subsidiarization of the business. Consequently, Nazara measured its retained stake in Nodwin Gaming at fair value, leading to a one-time gain,” the firm said in a regulatory filing.

It witnessed a 65.06% year-on-year (YoY) increase in its revenue from operations to ₹526.46 crore for the September FY26 quarter, as against ₹318.94 crore in the year-ago period, bolstered by improved retention, deeper LiveOps engagement, and cross-platform distribution across mobile, console, and PC.

During the reporting quarter, the gaming segment contributed ₹295.88 crore to revenue, representing nearly three times the annual growth from ₹114.05 crore in Q2FY25.

Its Adtech business revenue increased nearly five-fold YoY to ₹143.79 crore in the second quarter of the current fiscal year, compared to ₹24.13 crore in the same period of FY25.

However, its e-sports segment revenue fell 51.95% annually to ₹87.34 crore, as against ₹181.76 crore in the year-ago quarter.

Mobile gaming remained its contributor, led by global franchises, supported by recurring content seasons and strong engagement metrics.

Furthermore, its PC/console publishing business continued to perform steadily through evergreen global titles, alongside incremental gains from catalogue monetisation and platform expansion, it added.

Its offline interactive entertainment brands, Smaaash and Funky Monkeys, delivered profitable growth driven by “standardized centre playbooks, growing repeat footfall, and disciplined expansion.”

The firm’s EBITDA (earnings before interest, tax, depreciation, and amortisation) stood at ₹62 crore during the quarter under review, marking a 146.4% YoY jump from ₹25.2 crore in Q2FY25.

Its EBITDA margin expanded by 390 basis points (bps) annually to 11.8% from 7.9%, it added.

What the management said

Commenting on the earnings, Nitish Mittersain, Joint Managing Director & CEO of Nazara Tech, said that Nazara continued to strengthen its position as an IP-led, global gaming platform. In H1FY26, core gaming revenues grew 159% and EBITDA grew 253%, driven by deeper LiveOps engagement, global scale, and strong unit economics across mobile, console, and PC.

“We are evolving from publishing individual games to building and scaling long-term franchises. Our Centres of Excellence in UA, Analytics, AI, and Growth are creating portfolio-wide operating leverage. The accounting adjustments this quarter, including the Moonshine impairment and NODWIN fair value gain, are one-time items and do not impact operating cash flows or the momentum of our core business,” he added.

Nazara Tech has a total market capitalisation of ₹10,224.83 crore, as of November 13, 2025, according to data on the NSE.