Nazara Technologies (NAZARA IN) – Q2FY26 Result Update – Quarter marred by one-offs – HOLD
Published on 14 Nov 2025
We cut our EPS estimates by 15%/14% for FY27E/FY28E as we re-align our depreciation assumptions. NAZARA IN’s operational performance was broadly in line with EBITDA margin of 11.8% (PLe 11.0%) though bottom line was weighed down by multiple one-offs related to Nodwin, PokerBaazi and Freaks4U. The decision to deconsolidate Nodwin reflects NAZARA IN’s renewed emphasis on profitability over scale. The plan is to now focus on high-margin core gaming portfolio supported by ongoing releases such as new season of Love Island and Big Boss, alongside strong traction in Curve Games. Expansion in offline gaming also remains a key pillar with Smaaash 2.0 slated for relaunch in FY27E and plans to scale Funky Monkeys to ~100 centres over the next few years. Considering these factors, we build in a sales CAGR of 10% over the next 3 years with EBITDA margin of 12.8%/16.0%/16.6% for FY26E/FY27E/FY28E. We retain HOLD with a SoTP-based TP of Rs253.
