Gaming giant Nazara's net profit more than doubled to INR 51.3 Cr in Q1 FY26 from INR 23.6 Cr in the same quarter last year. Sequentially, profit skyrocketed 1,183% from INR 4 Cr.
It is pertinent to note that Nazara's Q1 profit included numbers from continuing as well as discontinued operations. While the continuing operations contributed INR 36.4 Cr to the total bottom line, the profit from discontinued operations stood at INR 14.9 Cr.
Meanwhile, the company's operating revenue also doubled to INR 498 Cr during the quarter under review from INR 250 Cr in Q1 FY25. On a QoQ basis, revenue declined 4.1% from INR 520 Cr.
The gaming segment remained Nazara's growth engine as the vertical generated a revenue of INR 241 Cr in the quarter under review, up 160% YoY. Its EBITDA stood at INR 58.7 Cr, up 311% YoY. The company bagged 62% of its gaming revenue from the US market.
The adtech vertical's revenue jumped 313% YoY to INR 106.1 Cr, while esports contributed INR 154.1 Cr to the top line, up 17% YoY.
While the gaming segment earned a profit of INR 18.1 Cr in the quarter, the esports segment slipped into the red with a loss of INR 24.3 Cr against a profit of INR 13.2 Cr in the year-ago quarter. The adtech segment's loss widened to INR 5.67 Cr from a loss of INR 2.62 Cr a year ago.
Nazara's total expenses almost doubled to INR 521 Cr in Q1 FY26 from INR 240 Cr in the same quarter last year. Sequentially, expenses saw a marginal decline from INR 527 Cr.
Nazara's Bonus Issue & Stock Split
The gaming company's board also approved a proposal for bonus issue in the ratio of 1:1 and a share split through which the existing equity shares, with a face value of INR 4 each, will be subdivided into two equity shares of face value INR 2 each.
The record date for both actions will be announced separately, with implementation subject to shareholder approval via postal ballot.
This will be the second time that the company will be issuing bonus shares to its shareholders. Earlier, Nazara issued bonus shares in the ratio of 1:1 in 2022.
It is also pertinent to note that Nazara is deconsolidating NODWIN Gaming from its subsidiary portfolio. Last month, the company announced that its esports subsidiary is raising a fresh round of capital from existing investors to fuel business expansion. However, Nazara will not participate in the fresh funding round. As a result, Nazara's stake in Nodwin will fall below 50%.
Shares of Nazara ended today's trading session 1.5% higher at INR 1,420.95 on the BSE.