Outcome of Board Meeting: Nazara Technologies

Key insights

7 takeaways

01
Nazara Technologies reported FY 2025-26 consolidated operating revenue of ₹39.78 billion and net profit before tax of ₹4.25 billion, reflecting a decline driven by higher operating expenses and reduced gaming segment revenue.See it on page 12
02
Regulatory impacts from the 2025 Gaming Act forced the cessation of online-money gaming for certain subsidiaries, resulting in impairment charges of ₹98.9 crore and ₹41 crore.See it on page 23
03
The company withdrew its previously filed amalgamation scheme with Paper Boat Apps as part of a strategic shift in corporate structure.See it on page 30
04
Total consolidated assets reached ₹437.12 billion, though cash and equivalents saw a sharp decline due to significant investing outflows during the fiscal year.See it on page 13
05
The gaming segment remains the company's largest asset holder at ₹134.1 billion, supported by ongoing contributions from e-sports and ad-tech divisions.See it on page 15
06
Governance changes include the appointment of two new directors, the reassignment of the founding chairman to a non-executive role, and the appointment of MAKK & CO. as internal auditors for FY 2026-27.See it on page 1
07
Despite quarterly operating losses of ₹94,321 lakhs, the company maintains a robust standalone net worth of ₹224 crore and is utilizing warrant issuances and share-based acquisitions to sustain growth.See it on page 14

Summary

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for FY 2026-27 were assigned to MAKK & CO., and a previously filed amalgamation scheme with Paper Boat Apps was withdrawn.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.