Nazara Technologies Ltd. (NAZARA) AI Stock Analysis

• Market Cap: ₹88.54B
• Dividend Yield: N/A
• Average Volume (3M): 84.68K
• Price to Earnings (P/E): 257.5
• Beta (1Y): 0.63
• Revenue Growth: 80.00%
• EPS Growth: 10.90%
• Country: IN
• Employees: 74
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.30
• Shares Outstanding: 370,465,030
• 10 Day Avg. Volume: 105,241
• 30 Day Avg. Volume: 84,679
• PEG Ratio: 3.20
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 2.33
• P/FCF Ratio: -178.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 10.25
• Revenue Forecast (FY): ₹19.44B

• Rating: 60 Neutral
• Price Target: ₹251.00 ▼(-11.99% Downside)
• Action: Reiterated Date: 10/08/25
• Date: Action: Reiterated 10/08/25

Nazara Technologies Ltd. has a strong financial foundation with robust revenue growth and efficient cost management. However, the stock faces challenges with high valuation metrics and weak technical indicators, suggesting potential overvaluation and bearish momentum. These factors contribute to a moderate overall stock score.

Positive Factors

Sustained Revenue Growth

Nazara's ~42% revenue growth reflects sustained expansion of its gaming, esports and content businesses. Durable top-line momentum supports scale advantages across user monetization, ad inventory and IP licensing, improving long-term product investment and market positioning.

Healthy Balance Sheet

The company's low debt-to-equity and rising shareholders' equity indicate financial resilience. This balance-sheet strength provides durable flexibility to fund organic growth, strategic investments or weather downturns without needing costly external financing.

Improved Operating Cash Generation

Improving operating cash flow versus net income shows the business converts profits into cash reliably. Persistent cash generation supports recurring content spend and platform investment, reducing reliance on financing for working capital and strategic initiatives.

Negative Factors

Profitability and Cash Variability

Fluctuating profitability and cash flows create execution risk: it complicates long-range planning and raises sensitivity to product cycle shifts. Persistent variability can hinder consistent reinvestment in games/esports and weaken predictability for stakeholders over the medium term.

Inconsistent Free Cash Flow

Significant capex-driven swings in free cash flow limit the company's ability to fund returns or large strategic moves without external capital. Over time, inconsistent FCF can constrain M&A agility and increase vulnerability during revenue slowdowns.

Net Margin Volatility

Volatile EBIT/EBITDA and muted net margins suggest operational leverage and cost structure sensitivity. Persistent margin volatility undermines long-term cash flow visibility and could pressure investment in product development or marketing to sustain user growth.

Nazara Technologies Ltd. Business Overview & Revenue Model

Company Description

Nazara Technologies Limited operates a gaming and sports media platform in India and internationally. The company operates through Gamified Early Learning, esports, Freemium, Telco Subscription, and Skill Based Real Money Gaming segments. It offers interactive gaming, e-Sports, and gamified early learning eco-systems. The company also engages in the provision of subscription/download of games/other contents. In addition, it owns various IPs, including World Cricket Championship and CarromClash in mobile games; Kiddopia in gamified early learning; Nodwin and Sportskeeda in eSports and eSports media; and Halaplay and Qunami in skill-based, fantasy, and trivia games. Nazara Technologies Limited was incorporated in 1999 and is based in Mumbai, India.

How the Company Makes Money

Nazara makes money primarily by monetizing its gaming and sports-fan engagement properties through multiple revenue streams. (1) Gaming revenue: It earns from publishing and operating games via in-app purchases (virtual goods/consumables), in-game advertising, and, where applicable, subscriptions or premium downloads; revenues may be generated directly from users and/or through app-store/platform distribution arrangements. (2) Esports revenue: It generates income from esports activities through tournament/event-related revenues and brand partnerships/sponsorships, and may also earn from media/content rights and advertising on esports platforms where applicable. (3) Ad-led and content-led monetization: Across its digital platforms and content properties, it can earn advertising revenue (display/video), and brand integrations tied to its gaming and sports audiences. (4) Licensing/partnerships: Where Nazara operates IP-led or branded titles and offerings, it may earn via licensing arrangements and commercial partnerships; specific partners and terms are not provided here. Overall earnings are influenced by the performance of its game portfolio (user growth and payer conversion), advertising demand, the scale and engagement of its esports/community platforms, and distribution partnerships with app stores and digital platforms.

Nazara Technologies Ltd. Financial Statement Overview

Summary

Nazara Technologies Ltd. demonstrates strong revenue growth and efficient cost management, contributing to a stable financial position. However, variability in profitability and cash flow indicates potential operational challenges that require careful attention to sustain long-term growth.

Income Statement

Nazara Technologies Ltd. has shown robust revenue growth with a significant increase from 2021 to 2025. The gross profit margin remains strong, indicating efficient cost management. However, the net profit margin shows room for improvement due to fluctuating EBIT and EBITDA margins, which suggest potential volatility in operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio, indicating a low reliance on debt financing. Strong stockholders' equity growth supports a solid equity ratio, reflecting financial stability. Return on equity has improved over time, suggesting effective use of equity to generate profits.

Cash Flow

Operating cash flow has improved, yet free cash flow remains inconsistent due to significant capital expenditures. The operating cash flow to net income ratio suggests good cash generation, but the free cash flow to net income ratio highlights areas for optimizing cash use.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.73B	16.24B	11.38B	10.91B	6.22B	4.54B
Gross Profit	11.58B	6.70B	6.67B	6.40B	4.82B	4.02B
EBITDA	2.61B	2.13B	1.80B	1.52B	1.11B	554.70M
Net Income	1.27B	753.50M	565.70M	393.90M	284.00M	92.00M
Balance Sheet
Total Assets	0.00	44.35B	27.62B	17.02B	14.10B	10.23B
Cash, Cash Equivalents and Short-Term Investments	6.53B	6.53B	14.26B	5.96B	7.32B	4.78B
Total Debt	0.00	2.19B	277.00M	382.00M	43.00M	17.00M
Total Liabilities	-32.37B	11.98B	4.27B	3.85B	2.12B	2.44B
Stockholders Equity	32.37B	28.63B	19.99B	11.05B	10.41B	6.58B
Cash Flow
Free Cash Flow	0.00	-211.20M	639.40M	-2.00M	498.00M	642.23M
Operating Cash Flow	0.00	1.27B	907.90M	81.00M	621.00M	674.06M
Investing Cash Flow	0.00	-12.01B	-6.03B	-952.00M	-3.50B	-2.68B
Financing Cash Flow	0.00	8.11B	9.46B	145.00M	3.35B	2.17B

Nazara Technologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 285.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NAZARA, the sentiment is Negative. The current price of 285.2 is above the 20-day moving average (MA) of 255.48, above the 50-day MA of 268.11, and below the 200-day MA of 285.74, indicating a bearish trend. The MACD of -9.46 indicates Positive momentum. The RSI at 35.02 is Neutral, neither overbought nor oversold. The STOCH value of 32.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NAZARA.

Nazara Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAKSOFT	68 Neutral	₹15.48B	21.87	―	0.42%	21.17%	27.66%
INTELLECT	62 Neutral	₹89.72B	118.88	―	0.69%	15.87%	39.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NAZARA	60 Neutral	₹88.54B	257.47	―	―	80.00%	10.90%
SASKEN	54 Neutral	₹15.56B	74.37	―	1.83%	77.13%	-39.91%
QUICKHEAL	41 Neutral	₹7.62B	54.49	―	1.08%	―	―

Nazara Technologies Ltd. Corporate Events

Nazara Technologies Lifts Stake in Rusk Media to 7.18% with INR 27.15 Crore Investment

Nazara Technologies has completed the cash payment of approximately INR 27.15 crore to acquire 4,276 Series A compulsorily convertible preference shares of Rusk Media Private Limited, representing 5.23% of Rusk Media’s fully diluted share capital. Following this transaction, carried out under a previously signed share purchase agreement involving its associate Nodwin Gaming, Nazara’s total stake in Rusk Media rises to 7.18%, signaling a continued strategic push into digital media and gaming-related content assets that may strengthen its position in the broader interactive entertainment value chain.

Nazara Technologies Closes Trading Window Ahead of Q3 FY26 Results

Nazara Technologies Limited has notified the stock exchanges that its trading window for dealing in the company’s securities will be closed for all connected and designated persons, as well as their immediate relatives, from 1 January 2026 until 48 hours after it announces its unaudited financial results for the quarter and nine months ended 31 December 2025. The company added that the date of the board meeting to consider and approve these results will be communicated separately, in line with SEBI’s insider trading regulations and Nazara’s own codes on fair disclosure and conduct, underscoring its adherence to governance norms ahead of a key financial disclosure.

Nazara Technologies Raises Stake in Subsidiary Next Wave Multimedia to 87.44%

Nazara Technologies has increased its stake in its subsidiary Next Wave Multimedia Private Limited by acquiring an additional 1,396 equity shares, representing 4.19% of Nextwave’s equity share capital, from the founding shareholders for a consideration of INR 2.5 crore. This transaction raises Nazara’s holding in Nextwave from 83.25% to 87.44%, further consolidating its control over the subsidiary and underscoring its strategy of deepening ownership in key gaming assets within its portfolio, which may enhance operational integration and strategic alignment within the group.