Nazara Technologies delivered strong operational performance in Q3FY26, demonstrating significant margin expansion and profitability turnaround. The gaming company reported consolidated net profit from continuing operations of ₹8.8 crores compared to a loss of ₹33.9 crores in the previous quarter, showcasing effective execution of its profit-led growth strategy.

Financial Performance Highlights

The company's financial metrics showed robust profitability improvements with EBITDA margins expanding significantly both year-over-year and quarter-over-quarter. The results reflect the impact of disciplined capital allocation and focus on scalable gaming operations.

For the nine-month period, Nazara demonstrated exceptional growth momentum with revenue increasing 29.7% YoY to ₹1,431.2 crores and EBITDA surging 73% YoY to ₹177.2 crores, with margins expanding to 12.4%.

Gaming Segment Delivers Strong Performance

The mobile gaming division achieved impressive results with the gaming segment delivering a 25% EBITDA margin in Q3FY26. The company's focus on scalable gaming IP and franchises showed positive momentum across multiple properties.

Kiddopia Recovery Through Centre of Excellence Strategy

The implementation of Centres of Excellence across User Acquisition, Data Analytics, Growth, and Product functions proved instrumental in Kiddopia's performance turnaround. The educational gaming app achieved subscriber growth recovery in Q3FY26 after several quarters of decline. CEO Nitish Mittersain highlighted that the company maintained disciplined user acquisition costs while scaling marketing spend, with cost per trial improving from $37.5 to $35.8 despite increased spending.

Strategic Investments and Business Expansion

The board approved strategic investments including nCore Games, developers of the made-in-India franchise 'FAU-G', and a primary capital infusion of up to ₹15 crores into Rusk Media, a mobile-first entertainment platform for Gen-Z and Gen-A audiences. These minority investments underscore Nazara's commitment to supporting the Indian gaming ecosystem while maintaining strategic flexibility for future monetization or acquisition opportunities.

Diversified Portfolio Performance

The PC and Console publishing division maintained strong performance with ₹70.9 crores revenue and ₹27.8 crores EBITDA in Q3FY26. The offline gaming segment delivered healthy margins with approximately 36% EBITDA margin, while the AdTech division showed robust growth momentum. Management indicated plans to expand Funky Monkey centers at one to two locations per month, with each center achieving breakeven within 18-24 months.

Adjusted for Nodwin deconsolidation, Q3FY26 YoY revenue growth stood at 9.8%, reflecting the underlying strength of Nazara's core gaming operations and successful implementation of strategic initiatives across multiple business verticals.

Nazara Technologies Limited has successfully completed its strategic acquisition of Series A Compulsorily Convertible Preference Shares (CCPS) in Rusk Media Private Limited, marking a significant milestone in the company's expansion strategy. The transaction, completed on January 30, 2026, represents a substantial investment in the gaming and media sector.

Transaction Details

The acquisition involved a comprehensive share purchase arrangement with specific financial parameters. Nazara Technologies paid the full consideration amount through a cash transaction, demonstrating the company's strong financial position and commitment to strategic growth.

Shareholding Impact

The completed acquisition significantly enhances Nazara Technologies' position in Rusk Media Private Limited. Following this transaction, the company's total holding in RMPL has increased to 7.18%, providing greater influence and participation in the target company's operations and strategic decisions.

Legal Framework and Compliance

The acquisition was executed pursuant to a Share Purchase Agreement dated November 12, 2025, including amendments thereto. The transaction involved Nodwin Gaming Private Limited, an associate of Nazara Technologies, as a party to the agreement. The company has fulfilled all regulatory disclosure requirements under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Significance

This acquisition represents Nazara Technologies' continued focus on expanding its presence in the gaming and media ecosystem. The investment in Rusk Media Private Limited aligns with the company's broader strategy of building a comprehensive portfolio of gaming and entertainment assets. The transaction demonstrates the company's ability to execute strategic acquisitions while maintaining strong financial discipline through cash-based transactions.