Nazara Technologies Q3 Results | Net profit tanks 54% to ₹14 crore despite 67% revenue surge

Gaming and sports media firm Nazara Technologies Ltd on Thursday (February 13) reported a 53.6% year-on-year (YoY) decline in net profit at ₹13.7 crore for the third quarter that ended December 31, 2024.

In the corresponding quarter of the previous fiscal, Nazara Technologies posted a net profit of ₹29.5 crore, the company said in a regulatory filing. The company's revenue from operations spiked 66.9% to ₹534.7 crore as against ₹320.4 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA was up 1.9% to ₹37 crore in the third quarter of this fiscal over ₹36.3 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 6.9% in the reporting quarter as compared to 11.3% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

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Nazara Technologies' core gaming segment revenue grew by 53%, driven by strategic acquisitions, including Fusebox Games, and strong performance from existing titles like Animal Jam. The company recently acquired popular gaming IPs CATS: Crash Arena Turbo Stars and King of Thieves, which will now be operated and published by Nazara, ensuring direct revenue and profit contributions.

Additionally, upcoming licensing agreements and integrations of entertainment IPs are expected to further boost user engagement. To support its expansion, Nazara is raising ₹495 crore through a preferential equity issue to Axana Estates LLP, led by Arpit Khandelwal and Mithun Sacheti. This capital infusion, combined with Nazara’s strong cash reserves, provides financial flexibility for future acquisitions and organic growth, driving long-term value creation.

The results came after the close of the market hours. Shares of Nazara Technologies Ltd ended at ₹935.60, up by ₹12.05 or 1.30% on the BSE.

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