Outcome of Board Meeting: Nazara Technologies

The board’s recent meeting confirmed the audited financial results for FY 2025‑26, approving an unmodified opinion from the CEO and appointing two new directors while reassigning the founding chairman to a non‑executive role. Internal audit responsibilities for FY 2026‑27 were assigned to MAKK & CO., and a previously filed amalgamation scheme with Paper Boat Apps was withdrawn.

Audit coverage extended to 20 subsidiaries and 11 associates, totaling assets of ₹1,57,390 lakhs and revenue of ₹1,13,393 lakhs; the audit opinion remained unmodified with no material deficiencies. Consolidated financials for FY 2025‑26 showed operating revenue of ₹39.78 billion, a slight decline from the prior year, and net profit before tax falling to ₹4.25 billion due to higher operating expenses and a drop in gaming segment revenue. Total assets rose to ₹437.12 billion, while cash and equivalents fell sharply, reflecting significant investing outflows.

Segment analysis highlighted gaming as the dominant asset holder at ₹134.1 billion, with e‑sports and ad‑tech also contributing to capital employed growth. Leverage increased modestly, with segment liabilities at ₹68.9 billion and unallocated items remaining substantial.

The audit report noted a quarterly operating loss of ₹94,321 lakhs and significant impairment losses linked to regulatory changes under the 2025 Gaming Act. The act forced cessation of online‑money gaming for certain subsidiaries, resulting in ₹98.9 cr and ₹41 cr impairment charges without deferred tax recognition. Despite these challenges, the company’s standalone net worth remained robust at ₹2 24 cr, and it pursued strategic measures such as labour‑code cost adjustments, share‑based acquisitions, and warrant issuances to sustain growth.

Overall, the meeting underscored Nazara Technologies’ continued focus on gaming and ad‑tech segments while navigating regulatory constraints, maintaining a solid equity base, and reinforcing governance through new audit appointments.