INDIAN GAMING AND sports media company Nazara Technologies reported a 23.5% year-on-year decline in operating revenue for the fourth quarter of FY26, even as the company posted a sharp increase in profitability driven by lower overall expenditure and stronger performance in its gaming business.
According to the company’s financial filings with the National Stock Exchange of India, Nazara’s operating revenue fell to ₹398 crore in Q4 FY26, compared with ₹520 crore in the corresponding quarter of the previous fiscal year, a report in Entrackr said.
Despite the decline in topline revenue, the company’s gaming division continued to strengthen its contribution to the overall business. Revenue from the gaming segment rose 78% year-on-year to ₹278 crore in Q4 FY26 from ₹156 crore in Q4 FY25, accounting for nearly 70% of the company’s operating revenue during the quarter.
However, revenue across the company’s esports and ad-tech verticals saw significant pressure. Esports revenue declined 85% year-on-year to ₹32 crore, while ad-tech revenue dropped 40% to ₹89 crore during the quarter.
The company attributed the decline primarily to the deconsolidation of NODWIN Gaming, lower sponsorship spending within the esports ecosystem, and weaker digital advertising demand from gaming and startup-focused advertisers.
Including other income, Nazara’s total income stood at ₹448 crore in Q4 FY26, down from ₹538 crore in Q4 FY25.
On the profitability front, the company reported a substantial improvement in earnings due to lower operating costs across multiple categories. Total expenditure during the quarter declined 29% year-on-year to ₹375 crore from ₹528 crore in the previous year’s quarter.
Marketing remained the company’s largest expense head at ₹111 crore, followed by employee benefit costs and content-related expenditure. The company also recorded reductions in advertising expenses, platform fees, and content acquisition costs during the period. As a result, Nazara’s net profit surged more than 13 times year-on-year to ₹55.7 crore in Q4 FY26, compared with ₹4.07 crore in Q4 FY25.
For the full financial year FY26, Nazara reported operating revenue of ₹1,829 crore, representing annual growth of 12.6%. Net profit for the year increased 60.8% to ₹82 crore.
