Nazara Technologies to establish AI Center of Excellence in partnership with the Telangana government.

The company stated that the strategic partnership with the Government of Telangana will position the company as a leader in the AI-driven gaming and digital entertainment space and will also result in boosting Telangana’s status as a global hub for AI innovation.

The Nazara AI CoE will focus on accelerating research, development, and innovation in gaming, interactive media, gamified learning, and other digital content. The company will make use of technologies such as AI, virtual and augmented reality, blockchain, and Web 3.0.

The partnership will also support policy development to promote startups, develop skills, and engage global expertise.

Nitish Mittersain, joint managing director and chief executive officer of Nazara Technologies, said that the partnership with the Telangana government will help the company to drive the integration of AI and other emerging technologies in their portfolio. The government’s support will also be vital in policy and partnership developments.

“Telangana’s proactive approach in fostering industry growth through public-private partnerships and policy development has created the ideal ecosystem for this initiative,” he said.

For the quarter ended June 30, 2024, Nazara Technologies reported a 13.3% year-on-year (YoY) rise in its net profit from continued operations to ₹23.6 crore. The company’s revenue from operations for the quarter declined 1.7% YoY to ₹250.1 crore.

In Q1FY25, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) sank 24.7% YoY to ₹24.9 crore. The EBITDA margin for the quarter stood at 10% compared to 13% in the corresponding period last year.

Shares of the company have risen by nearly 11% since the beginning of the year. The stock has gained over 6% in the past year.