Nazara Technologies Ltd. (NAZARA) AI Stock Analysis

• Market Cap: ₹101.12B
• Dividend Yield: N/A
• Average Volume (3M): 84.68K
• Price to Earnings (P/E): 119.2
• Beta (1Y): 0.60
• Revenue Growth: 80.00%
• EPS Growth: 10.90%
• Country: IN
• Employees: 74
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.79
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹286.00 ▲(0.28% Upside)

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

Revenue Growth

Nazara's robust revenue growth indicates effective market penetration and product adoption, supporting long-term business expansion and sustainability.

Business Model

A diversified revenue model across gaming and esports provides resilience against market fluctuations and enhances revenue stability.

Balance Sheet Health

A strong balance sheet with low debt reliance ensures financial flexibility and stability, enabling strategic investments and growth opportunities.

Negative Factors

Profitability Variability

Fluctuating profitability and cash flow suggest operational inefficiencies that could impact long-term financial performance and growth prospects.

Free Cash Flow Inconsistency

Inconsistent free cash flow due to high capital expenditures may limit the company's ability to invest in growth initiatives or weather economic downturns.

Net Profit Margin

Volatile net profit margins indicate potential inefficiencies in cost management, which could hinder long-term profitability and shareholder value.

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 Technologies generates revenue through multiple streams, primarily from in-game purchases, subscription services, and advertising within its gaming applications. The company's mobile gaming segment benefits from a freemium model, where users can download games for free and make optional purchases for enhanced features or virtual goods. Additionally, Nazara has established partnerships with global gaming companies and platforms, expanding its reach and enhancing its content offerings. The company also monetizes its esports initiatives through sponsorships, partnerships, and event management, contributing significantly to its earnings. Overall, Nazara's diverse revenue model, focusing on both casual and skill-based gaming, positions it well in the rapidly evolving digital entertainment landscape.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• Last Price: 285.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NAZARA, the sentiment is Positive. The current price of 285.2 is above the 20-day moving average (MA) of 250.00, above the 50-day MA of 254.66, and below the 200-day MA of 285.52, indicating a neutral trend. The MACD of 9.53 indicates Negative momentum. The RSI at 64.05 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NAZARA.

Nazara Technologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTELLECT	73 Outperform	₹128.03B	31.74	―	0.69%	15.87%	39.55%
SAKSOFT	72 Outperform	₹24.70B	18.93	―	0.42%	21.17%	27.66%
SASKEN	64 Neutral	₹22.13B	56.26	―	1.83%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NAZARA	60 Neutral	₹101.12B	119.22	―	―	80.00%	10.90%
QUICKHEAL	47 Neutral	₹13.33B	-1,751.96	―	1.08%	―	―

Nazara Technologies Ltd. Corporate Events

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.

Nazara Technologies Relocates Registered Office in Mumbai

Nazara Technologies Limited has announced a change in its registered office location, moving from Nariman Point to Avighna House in Worli, Mumbai, effective November 1, 2025. This relocation remains within the jurisdiction of the Registrar of Companies in Mumbai and does not affect the company’s contact details, indicating a strategic move to optimize operations without disrupting communication with stakeholders.