Nazara Technologies Q2 Revenue Surges 65% to $59.4 Million Despite Regulatory Hurdles
- ByStartupStory | November 18, 2025
Indian digital entertainment and gaming major Nazara Technologies reported a robust revenue surge of 65% year-on-year for the second quarter of fiscal 2025, reaching approximately ₹526.5 crore ($59.4 million). This impressive growth reflects strong operational momentum across its gaming verticals, even as the company grapples with significant regulatory headwinds affecting its real-money gaming (RMG) business.
Nazara’s consolidated total income for Q2 FY26 stood at ₹1,630.92 crore, driven primarily by a sharp rise in core gaming revenues, LiveOps engagement, and wider cross-platform distribution, encompassing mobile, PC, and console gaming. This marked a staggering 183% growth quarter-on-quarter and over 370% year-on-year, underscoring Nazara’s expanding footprint in the global gaming ecosystem.
However, the company’s Q2 profitability was impacted by a one-time impairment charge of ₹914.7 crore related to its investment in Moonshine Technologies, an online skill-based RMG operator, which faced a government ban on its business. This regulatory action led Nazara to write down its entire carrying value in Moonshine to ₹96.53 crore.
Despite this accounting setback, Nazara demonstrated healthy underlying operating performance. EBITDA for the quarter doubled to ₹62 crore, growing 146% year-on-year, with core gaming margin expansion to 23.2%. Profit before tax rose sharply by 231% quarter-on-quarter to ₹181.97 crore. The firm reported a net loss after tax of ₹33.93 crore, reflecting the Moonshine impairment and other one-time adjustments.
The company’s CEO, Nitish Mittersain, highlighted continued strength in retention rates, deeper engagement through LiveOps (live operations), and strategic investments in user acquisition, analytics, and AI-powered growth centers. These initiatives have enhanced unit economics and catalyzed a shift from publishing individual games to building scalable, long-term gaming franchises.
Nazara also reclassified its esports arm Nodwin Gaming as an associate entity after its shareholding fell below 50%, resulting in a fair-value gain of ₹1,098 crore. This gain boosted other income and partially offset impairment losses.
Mobile gaming franchises such as Love Island, Big Brother, Kiddopia, Animal Jam, and World Cricket Championship continued to fuel top-line growth, supported by wider international distribution and cross-platform availability.
The regulatory clampdown on skill-based real-money gaming remains a key challenge, but Nazara’s core gaming business is growing strongly, delivering revenue growth and expanding margins. The company’s focus on leveraging data-driven decision-making and technological innovation across studios positions it well for sustained growth in India and global markets.
For the first half of FY26, Nazara recorded total income of ₹1,025 crore, increasing 80% year-on-year, alongside a more than doubling in EBITDA to ₹109 crore. This financial strength and strategic agility underline Nazara’s ability to navigate a complex industry environment while capturing emerging opportunities in interactive digital entertainment.
Overall, Nazara Technologies’ Q2 FY26 results reflect a company evolving towards long-term franchise building with strong competitive positioning, despite regulatory disruptions. The substantial revenue growth and operational progress signal a bright outlook for India’s leading listed gaming powerhouse.
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