Nazara Technologies (NAZARA IN) – Q3FY26 Result Update – Balancing growth & margins is key to revival – HOLD
Published on 04 Feb 2026
We cut our EPS estimates by 11%/8% for FY27E/FY28E as we re-align our depreciation assumptions post de-consolidation of Nodwin. NAZARA IN’s operational performance was better than our estimate with EBITDA margin of 16.7% (PLe 15.4%) driven by healthy performance in the console publishing and offline (SMAASH + Funky Monkey) businesses. Even Nodwin registered a sharp turnaround with revenues up by 1.6x with an EBITDA margin of 15.3% as profitability improved across multiple owned IP’s. Decision to de-consolidate Nodwin and renewed focus on core gaming portfolio reflects higher emphasis on profitability over scale. Considering these factors, we build in a sales CAGR of 11% over the next 3 years with EBITDA margin of 12.6%/15.6%/16.8% for FY26E/FY27E/FY28E. We retain HOLD with a SoTP-based TP of Rs276.
