Nazara Technologies Q3 FY25 Net Profit Falls to ₹13.7 crore

Gaming and sports media company Nazara Technologies reported a year-on-year (YoY) decline in net profit for the third quarter ending December 31, 2024. The company’s net profit stood at ₹13.7 crore, significantly lower than the ₹29.5 crore reported in the corresponding quarter of the previous fiscal, as per the company’s regulatory filing.

Nazara Technologies Q3 FY25 Performance 

Despite the decline in net profit, Nazara Technologies recorded a strong revenue growth of 66.9%, with total revenue from operations reaching ₹534.7 crore in Q3 FY25, compared to ₹320.4 crore in the corresponding period last year.

At the operating level, Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew 1.9% to ₹37 crore, slightly higher than the ₹36.3 crore reported in the same fiscal period. However, EBITDA margin contracted to 6.9%, down from 11.3% in the previous fiscal’s Q3, indicating higher operational costs and investments.

Gaming Segment Growth and Strategic Acquisitions

Nazara Technologies’ core gaming segment revenue surged by 53%, fueled by strategic acquisitions and a strong performance from its existing game titles. Among the major acquisitions was Fusebox Games, which bolstered the company’s portfolio. Furthermore, the company recently acquired popular gaming IPs, including:

• CATS: Crash Arena Turbo Stars
• King of Thieves

These acquisitions are expected to directly contribute to Nazara’s revenue and profitability through enhanced publishing control and monetisation strategies.

Upcoming Licensing Deals to Boost Engagement

Nazara is also focused on expanding its licensing agreements and entertainment IP integrations, which are expected to enhance user engagement and drive future revenue growth. The company aims to leverage these IPs to solidify its market position in the rapidly evolving gaming industry.

₹495 Crore Fundraise for Expansion and Growth

To support its growth initiatives and future acquisitions, Nazara Technologies is raising ₹495 crore through a preferential equity issue to Axana Estates LLP, an investment firm led by Arpit Khandelwal and Mithun Sacheti.

This capital infusion, combined with Nazara’s strong cash reserves, will provide financial flexibility for organic and inorganic growth while creating long-term value for stakeholders.

Stock Performance 

On February 13, 2025, Nazara Technologies’ share price ended 0.61% higher at ₹929.15. It reached a 52-week high of ₹1,124.15 on September 19, 2024, and a 52-week low of ₹590.85 on May 27, 2024. As per BSE, the total traded volume for the stock stood at 6986 shares with a turnover of ₹64.83 lakhs.

At the current price, Nazara Technologies shares are trading at a price-to-earnings (P/E) ratio of -105.35x, based on its trailing 12-month earnings per share (EPS) of ₹-8.82, and a price-to-book (P/B) ratio of 5, according to exchange data.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.