Nazara Technologies Share Valuation Report April 2026
Sector: Internet · Gaming · eSports
Report Date: 06 April 2026
Nazara Technologies is India’s only publicly listed gaming and sports media company, founded in 1999 by Nitish Mittersain and listed on NSE/BSE in March 2021. It has evolved from a telecom VAS provider into a diversified multi-platform gaming conglomerate operating across India, North America, Europe, Africa, and the Middle East.
The company operates through three broad segments: Gaming (mobile IP, gamified early learning, narrative games — ~40% of revenue), eSports & Media (Nodwin Gaming, Sportskeeda, DRHM India — ~46% of revenue), and AdTech (Datawrkz — ~14% of revenue). Post-deconsolidation of NODWIN Gaming from Q3 FY26, reported revenue has declined structurally but margins have sharply improved.
Key assets: Kiddopia / Animal Jam (US-focused gamified learning), Fusebox (narrative mobile games: Love Island, Big Brother, Bigg Boss), World Cricket Championship (WCC), Curve Games (PC/console publishing, UK), Sportskeeda (sports media), Nodwin Gaming (eSports), PokerBaazi, Smaaash, Funky Monkeys (offline gaming), and Datawrkz (programmatic adtech).
Nazara 3.0 strategy focuses on becoming a high-margin, IP-led global gaming platform — consolidating full ownership of profitable subsidiaries, acquiring creative studios, and building publishing capabilities across mobile, PC, console, and offline formats. The company holds a net cash position of ~₹700 Cr for M&A firepower.
Revenue has compounded sharply through an acquisition-heavy strategy. Profitability has been lumpy due to goodwill impairments, minority interests, and integration costs, but core cash generation is healthy. FY25 delivered record EBITDA; Q3 FY26 shows margin expansion post-NODWIN deconsolidation.
| Metric (₹ Cr) | FY22 | FY23 | FY24 | FY25 | Q3 FY26 (LTM est.) |
|---|---|---|---|---|---|
| Revenue from Operations | 774 | 1,090 | 1,138 | 1,715 | ~1,600* |
| EBITDA | ~62 | ~110 | 127 | 153.5 | ~190* |
| EBITDA Margin % | 8.0% | 10.1% | 11.2% | 9.4% | ~16.7%* |
| PAT (Reported, Consol.) | ~28 | ~64 | 74.75 | 50.96 | ~70 est. |
| PAT (Continuing Ops) | — | — | 89.46 | 62.5 | — |
| Operating Cash Flow | ~40 | ~90 | 131.4 | 118.3 | — |
| Revenue CAGR (3yr FY22-25) | +30.5% p.a. | — | |||
| Quarterly Snapshot (₹ Cr) | Q3 FY25 | Q4 FY25 | Q2 FY26 | Q3 FY26 | YoY Δ |
|---|---|---|---|---|---|
| Revenue | 534.7 | 520.2 | 526.5 | 406.0 | -24.1% |
| EBITDA | 52.4 | 51.0 | ~50 | 67.8 | +29.4% |
| EBITDA Margin | 9.8% | 9.8% | 9.5% | 16.7% | +690 bps |
| PAT | 30.7 | 4.1 | ~25 | 9.8 | -67.9% |
| EPS (₹) | 1.01 | 0.13 | 0.82 | 0.27 | — |
We apply a 10-year discounted free cash flow model anchored on FY25 operating cash flow of ₹118 Cr as the base. We project FCF scaling as margins expand post-NODWIN deconsolidation, core gaming IP monetisation ramps, and Kiddopia/Fusebox/Curve contribute globally. WACC of 12%, terminal growth of 5%.
| Year | FCF Growth Assumption | FCF (₹ Cr) | PV Factor (12%) | PV of FCF (₹ Cr) |
|---|---|---|---|---|
| FY26E | Base: margin expansion, NODWIN impact | 130 | 0.893 | 116 |
| FY27E | +25% – Fusebox, Kiddopia IP ramp | 163 | 0.797 | 130 |
| FY28E | +22% – Curve Games, global publishing | 199 | 0.712 | 142 |
| FY29E | +20% – PokerBaazi margin, WCC monetisation | 239 | 0.636 | 152 |
| FY30E | +18% – Smaaash/offline gaming scale | 282 | 0.567 | 160 |
| FY31E | +16% – Platform network effects | 327 | 0.507 | 166 |
| FY32E | +14% | 373 | 0.452 | 169 |
| FY33E | +12% | 418 | 0.404 | 169 |
| FY34E | +10% | 460 | 0.361 | 166 |
| FY35E | +8% | 497 | 0.322 | 160 |
| Sum of PV (10-year FCF) | 1,530 | |||
SoTP Valuation (Base Case): Given Nazara’s multi-segment structure, an EV/EBITDA SoTP is the market-preferred framework. ICICI Securities applied 37x FY26E EV/EBITDA (ex-minority) to derive earlier targets. At current net cash-adjusted EV of ~₹7,950 Cr vs. FY26E EBITDA of ~₹220 Cr, the stock trades at ~36x forward EV/EBITDA — a premium warranted only if margin trajectory sustains toward 18-20%.
Incorporating both DCF value floor and SoTP premium for gaming IP optionality. Strong buy zone assumes continued derating from FY26 execution uncertainty; fair value embeds base-case SoTP.
Revenue: Management guided FY25-27E revenue CAGR of ~32%. Gaming segment (Fusebox, Kiddopia, WCC, Curve) should drive quality growth. NODWIN’s deconsolidation lowers top line but improves margins sharply. Absolute Sports/Sportskeeda has cut costs 32% YoY and Pro Football Network grew 58% YTD.
| Segment | FY25 Rev (Est.) | Growth Driver | FY27E Rev (Est.) | Margin Profile |
|---|---|---|---|---|
| Core Gaming (Kiddopia, WCC, Fusebox, Curve) | ₹680 Cr | IP monetisation, US/EU market expansion | ₹1,100 Cr | 18–22% EBITDA |
| eSports Media (Sportskeeda, PFN) | ₹320 Cr | PFN turnaround, new sports verticals | ₹420 Cr | 10–14% |
| AdTech (Datawrkz) | ₹240 Cr | Programmatic scale, AI-driven targeting | ₹310 Cr | 12–15% |
| RMG (PokerBaazi) | ₹280 Cr | 30-40% growth, GST clarity needed | ₹480 Cr | 20–25% |
| Offline Gaming (Smaaash, Funky Monkeys) | ₹195 Cr | Franchise expansion, experiential demand | ₹310 Cr | 8–12% |
| Total (Post-NODWIN perimeter) | ~₹1,715 Cr | — | ~₹2,620 Cr | 15–18% |
Key FY27 catalysts: Launch of Bigg Boss India and Big Brother Global on Fusebox; Animal Jam IP expansion; PC/console title pipeline from Curve Games; PokerBaazi margin inflection if GST clarified; LATAM expansion of Kiddopia; Nodwin’s return to profitability post-Freaks4U cost rationalisation.
| Metric | FY25A | FY26E | FY27E | FY28E |
|---|---|---|---|---|
| Revenue (₹ Cr) | 1,715 | ~1,650 | ~2,200 | ~2,800 |
| EBITDA (₹ Cr) | 153.5 | ~220 | ~350 | ~490 |
| EBITDA Margin | 9.4% | ~13.3% | ~15.9% | ~17.5% |
| PAT (₹ Cr) | 51 | ~80 | ~160 | ~240 |
| EPS (₹) | 1.60 | ~2.50 | ~5.00 | ~7.50 |
| Operating CF (₹ Cr) | 118 | ~145 | ~240 | ~340 |
- GST regulatory clarity for online gaming — unlocks PokerBaazi’s full valuation (₹300–₹500 Cr potential)
- Fusebox narrative IP hits (Bigg Boss India, Big Brother Global) become breakout mobile titles
- Kiddopia LATAM expansion + new IP integrations drive US subscriber re-acceleration
- Curve Games PC/console pipeline delivers a breakout title — re-rates to global gaming multiples
- Nodwin Gaming deconsolidation reduces drag; stake sale/listing crystallises value
- India gaming market inflection — 600M+ smartphone users with rising ARPU
- M&A of another high-margin gaming studio funded from ₹700 Cr cash war chest
- Foreign institutional interest — stock liquidity improves, index inclusion potential
- GST/tax demands upheld — PokerBaazi existential risk (₹206 Cr impairment already taken)
- Google search algorithm changes — Sportskeeda already hit (-32% costs cut) — structural revenue risk
- Freaks4U (Europe) integration failure — Nodwin losses widen, drag on consolidated results
- Acquisition integration risk — serial acquirer with minority stake complications
- US market slowdown — Kiddopia, Animal Jam, Fusebox are US-centric; USD/INR matters
- ROE of 3.2% over 3 years — capital efficiency question mark for acquisition-heavy model
- Thin reported PAT margin — PAT ₹51 Cr on ₹1,715 Cr revenue = 3.0% net margin; modest
- Global gaming sector derating — Unity, Zynga comps have re-rated down sharply
Nazara remains India’s only listed pure-play gaming company, limiting direct comparables. We compare against digital media/internet comps and global gaming benchmarks.
| Company | Mkt Cap (₹ Cr) | Revenue (₹ Cr) | EBITDA Margin | EV/EBITDA | P/E (FY26E) | Revenue CAGR | Rating |
|---|---|---|---|---|---|---|---|
| Nazara Technologies | 8,647 | 1,715 | 9.4% | 36x | ~108x | +41% (FY25) | ACCUMULATE |
| Zomato/Eternal (India Internet) | ~2,20,000 | ~17,000 | 5–8% | 80x+ | — | +65% | — |
| Info Edge (India) | ~85,000 | ~3,200 | 28% | 65x | 90x | +12% | — |
| Delta Corp (Gaming/Casino) | ~3,500 | ~1,400 | 20% | 14x | 18x | +5% | — |
| Zynga/Take-Two (Global) | USD 29B | USD 5.3B | 12% | 22x | — | +8% | — |
| Sea Ltd (Southeast Asia) | USD 42B | USD 13B | 15% | 20x | 40x | +23% | — |
Nazara commands a premium to global gaming comps (36x vs. 20–22x) on the basis of India-market optionality, acquisition-led compounding, and scarcity value as the only listed gaming stock in India. However, the premium is not infinite — sustained margin expansion to 15–18% is the key de-risker. Delta Corp’s 14x multiple shows the downside scenario if GST overhang persists.
The DCF intrinsic value of ₹141/share reveals that current pricing is a strategic premium — justified only if: (a) margin expansion to 15–18% sustains, (b) PokerBaazi GST clarity emerges, (c) Fusebox/Kiddopia/Curve deliver meaningful global revenue, and (d) the M&A pipeline adds more high-margin studios. Probability-weighted fair value of ~₹340 suggests 20% upside from CMP.
Action: Accumulate in ₹230–₹270 range on dips. Hold if already invested. Do not chase above ₹380. Watch PokerBaazi GST news and Q4 FY26 EBITDA as critical checkpoints.
