Nazara Technologies has undertaken a comprehensive portfolio restructuring and outlined an ambitious growth strategy centered on artificial intelligence integration and global intellectual property expansion. The gaming company has completed significant organizational changes while setting aggressive financial targets for the coming years.

Portfolio Restructuring and Strategic Reset

The company has completed a major portfolio reset involving the de-subsidiarisation of Nodwin and impairments of PokerBaazi and Freaks4U operations. This restructuring initiative was specifically undertaken to improve earnings quality and enhance business visibility for stakeholders.

Growth Strategy and Brand Positioning

The core gaming business is expected to anchor future growth with structurally higher EBITDA margins ranging between 20-25%. The company has refreshed its Enter Magic brand to reinforce its strategic push toward AI-enabled, immersive gaming experiences.

Management views ownership of scalable global intellectual properties as the key long-term competitive moat. The company is actively evaluating larger, IP-led global acquisitions that would be funded through a strategic mix of accruals, debt, and equity financing.

Operational Excellence and Global Execution

With over 90% of revenues generated from overseas markets, the company's execution strategy centers on compounding growth through multiple operational levers:

• LiveOps Intensity: Enhanced live operations to maximize player engagement
• AI-Driven Efficiency: Artificial intelligence integration for operational improvements
• New IP Rollouts: Strategic launch of fresh intellectual properties
• Centres of Excellence: Supporting scalable execution without integration risks

Financial Projections and Growth Outlook

Analysts have established robust financial forecasts reflecting the company's strategic positioning and operational improvements. The projections indicate significant acceleration in both revenue and profitability metrics.

The faster EBITDA growth compared to revenue expansion is expected to be driven by mix improvement, operating leverage benefits, and AI-led productivity gains across the organization.

Risk Factors and Market Considerations

Despite the positive outlook, several key risks could impact the company's growth trajectory:

• Execution Challenges: Potential difficulties in implementing IP-led merger and acquisition strategies
• Gaming IP Volatility: Inherent unpredictability in gaming intellectual property performance
• Regulatory Changes: Platform policy modifications that could affect monetization capabilities and capital efficiency

With portfolio cleanup largely complete and execution improvements visible across mobile gaming, PC/console platforms, advertising technology, and offline gaming segments, the company appears positioned for a more durable growth cycle with improving return metrics and enhanced earnings predictability.

Nazara Technologies witnessed significant institutional activity on Monday as SBI Mutual Fund, India's largest fund house, divested part of its holdings in the gaming and e-sports company. Despite the selling pressure from the major institutional investor, the stock demonstrated strong resilience with impressive gains across both exchanges.

Transaction Overview

SBI Mutual Fund executed a substantial block deal on Monday, selling 45 lakh shares of Nazara Technologies at an average price of ₹240.18 per share. The transaction, valued at approximately ₹108 crore, represents just over 1% of the fund house's total holding in the company based on its September quarter shareholding data.

SBI Mutual Fund's Position

Based on September quarter shareholding data, SBI Mutual Fund maintained a 5.90% stake in Nazara Technologies, owning 2.10 crore shares. The Monday transaction represents a partial divestment of the fund's position, with the majority of its holding remaining intact. This strategic reduction suggests portfolio rebalancing rather than a complete exit from the gaming sector.

Broader Shareholding Pattern

Mutual funds collectively held a 6.60% stake in Nazara Technologies at the end of the September quarter. The company maintains a diversified shareholder base with significant participation from various institutional and retail investors.

Market Performance

Despite the institutional selling pressure, Nazara Technologies shares surged 6.10% on Monday, closing at ₹252.00. The stock experienced a notable spike post noon during Monday's trading session, indicating strong buying interest that absorbed the institutional selling. The stock has remained flat in 2025 but delivered an 18% gain in 2024, reflecting the gaming sector's evolving dynamics.