Nazara Technologies Reports 53.6% Drop in Net Profit for Q3 FY25, But Revenue Surges by 67%
Nazara Technologies, a leading gaming and e-sports company, announced a significant 53.6% decline in its net profit for the October-December quarter (Q3) of FY25. The company’s net profit fell to Rs 13.7 crore, compared to Rs 29.5 crore during the same period last year (Q3 FY24), according to its exchange filing.
Mumbai: Nazara Technologies, a leading gaming and e-sports company, announced a significant 53.6% decline in its net profit for the October-December quarter (Q3) of FY25. The company’s net profit fell to Rs 13.7 crore, compared to Rs 29.5 crore during the same period last year (Q3 FY24), according to its exchange filing.
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Decline in Profit and EBITDA Margin
Nazara Technologies also reported a drop in its EBITDA margin, which fell to 6.9% in Q3 FY25 from 11.3% in Q3 FY24. In addition, the company experienced a 33% decline in its net profit during the previous quarter (Q2 FY25), where it incurred a loss of Rs 1.86 crore due to discontinued operations.
Total expenditure for Nazara increased by 11% to Rs 321.27 crore in Q2 FY25, further impacting its financial performance. Despite these setbacks, the company is continuing to focus on long-term growth strategies, including acquisitions and organic expansion.
Strong Revenue Growth Despite Profit Decline
On a positive note, Nazara Technologies reported robust growth in revenue from operations for Q3 FY25, which surged nearly 67% year-on-year (YoY), reaching Rs 534.7 crore. This growth was driven by recent acquisitions, including Fusebox Games, as well as the strong performance of existing games like Animal Jam.
The company also achieved its highest-ever EBITDA of Rs 52.4 crore, marking a 39% increase compared to the same period last year. These results highlight the company’s potential for long-term growth despite the decline in profitability in the short term.
Strategic Acquisitions and Fundraising Plans
Nazara Technologies has continued to expand its gaming portfolio, recently acquiring popular gaming IPs CATS: Crash Arena Turbo Stars and King of Thieves. The company plans to operate and publish these games directly, which it believes will generate consistent revenue and profits in the future.
To further fuel its expansion plans, Nazara is raising Rs 495 crore through a preferential equity issue to Axana Estates LLP, led by Arpit Khandelwal and Mithun Sacheti. This fresh capital injection, combined with its existing cash reserves, will provide the company with the financial flexibility to pursue additional acquisitions and drive further organic growth.
Also Read: Bank of India Raises Rs 2,690 Crore Through Infrastructure Bonds at 7.5% Interest Rate
Positive Market Reaction
Following the financial results, Nazara Technologies’ shares closed at Rs 935.60 on the Bombay Stock Exchange (BSE), up 1.30% from the previous session. The market’s response to the company’s strategic growth initiatives and robust revenue performance signals investor confidence in Nazara’s future potential.
Nazara Technologies continues to focus on expanding its footprint in the global gaming industry, positioning itself for sustained growth in the highly competitive market.
