Nazara Q1 revenue nearly doubles to $57m

Nazara Technologies reported a 99% year-on-year rise in revenue to 498.8 crore rupee (US$57 million) for the first quarter of fiscal 2026.

The Mumbai-based gaming company also posted a 90% year-on-year rise in EBITDA at 47.4 crore rupee (US$5.4 million) and a 118% rise in profit after tax to 51.3 crore rupee (US$5.9 million) for the quarter.

Nazara cited strong results from its key businesses Fusebox, Animal Jam, and Curve Games for the growth.

Nazara Technologies operates in India, North America, and other global markets, offering games and digital ad services.

🔗 Source: Nazara Technologies

🧠 Food for thought

1️⃣ Dual corporate actions signal exceptional financial strength and growth confidence

Nazara’s simultaneous approval of both a stock split and 1:1 bonus issue reflects a company with strong cash reserves and high confidence in future performance.

The combination is particularly telling. While the stock split makes shares more accessible by reducing face value from ₹4 to ₹2, the bonus issue rewards shareholders with free additional shares funded from retained earnings1.

Companies typically issue bonus shares only when they have substantial accumulated profits and want to signal financial health without impacting cash flow2.

This dual action comes after Nazara reported ₹51.3 crores in PAT with 118% year-over-year growth, demonstrating the company has both the earnings and confidence to execute these shareholder-friendly moves.

The timing suggests management believes the current growth trajectory, doubling revenues to ₹498.8 crores, is sustainable enough to warrant increasing the share count while maintaining strong per-share performance.

2️⃣ Nazara’s growth significantly outpaces broader gaming market expansion

Nazara’s 99% revenue growth far exceeds the Indian gaming industry’s projected compound annual growth rate of 19.6%, indicating the company is capturing market share rather than simply riding industry tailwinds3.

While the broader Indian gaming sector is expected to grow from $3.7 billion to $9.1 billion by 2029, Nazara’s performance suggests it’s growing significantly faster than the overall market3.

This outsized growth likely stems from the company’s strategic acquisitions, including Curve Games for ₹247 crores, and its position as India’s only publicly listed gaming company, giving it unique access to capital for expansion4.