Synopsis:
The shares of this gaming and media company were in the news today as they skyrocketed more than 8 per cent following the company’s announcement of its Q2 result, which in hindsight, reported a loss but had certain factors that changed the profitability structure.
The shares of this company, which is the leading India-based diversified gaming and sports media platform with a presence in India and across emerging and developed global markets, were in the spotlight today as the company declared its Q2 results with a certain twist.
With a market cap of Rs 10,298 crore, the shares of Nazara Technologies Ltd soared more than 8 per cent in today’s trading session and reached a high of Rs 281.55, when compared to its previous day closing price of Rs 256.65, the shares are trading at a PE of 80, whereas its median PE is 99, and have given a return of 73 per cent over the last 3 years.
Q2 FY26 Result highlights
The revenue from operation for the company stood at Rs 526.46 crore when compared to Rs 318.94 crore in Q2 FY25, growing by about 65 per cent on a YoY basis and on a QoQ basis increasing by 5.55 per cent from Rs 498.77 crore in Q1 FY26.
The profit after tax fell in Q2 FY26 with a loss of Rs 33.93 crore when compared to the Rs 16.24 crore profit in Q2 FY25, and on a QoQ basis has fallen from a profit of Rs 51.34 crore in Q1 FY26.
But here’s the catch: the company has reported an exceptional item, as this quarter was a mix of ups and downs for Nazara. On the positive side, when the company gave up control of Nodwin Gaming, its earlier investment had to be valued again based on today’s market price. Because Nodwin has grown significantly in value over the years, this revaluation created a big one-time gain of Rs 1,098 crore, which lifted Nazara’s reported numbers.
At the same time, Nazara faced a major setback with Moonshine Technologies, whose real-money gaming business became non-viable after the new Online Gaming Act. This forced the company to take a one-time loss of Rs 915 crore by writing down its entire investment. But since the gain from Nodwin was larger than the loss from Moonshine, Nazara still ended up with an overall net profit, even though both items were purely exceptional and won’t repeat. The remaining numbers add up to take Nazara techs’ net profit, upwards of Rs 880 crore, and thus the rise in share price is explained.
Ace Holding
Kamath associates took a fresh stake of 1.27 per cent in Nazara Tech in the month of October, 2023, and currently, in Q2FY26, holds around 1.62 per cent with 60.19 lakh shares. Madhusudan Murlidhar Kela also holds a 1.18% stake amounting to 43,85,220 shares , fresh stake was acquired in December 2024.
Nazara Technologies is a leading diversified gaming and sports media company from India, offering popular games like Kiddopia and World Cricket Championship. The company is focused on building the future of gaming from India by continuously innovating and setting new benchmarks in the global gaming industry.
Written by Leon Mendonca
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