Nazara Technologies has announced its second-quarter results for FY26, revealing a net loss of around ₹29 crore. At first glance, the loss may seem concerning, especially for a company that has consistently delivered strong financial performance. However, the deeper picture tells a more balanced story. The loss comes from a one-time accounting adjustment rather than a drop in the company’s gaming business. In fact, Nazara’s core operations continue to grow at an impressive pace, showing that the company remains strong in the fast-expanding Indian and global gaming market.
Why Nazara Reported a Loss This Quarter
The company’s loss was mainly due to an exceptional, non-cash accounting write-down on its investment in Moonshine Technologies, the parent entity behind the well-known PokerBaazi platform. Recent changes in government regulations affected the real-money gaming sector, leading to a decline in the value of this investment. As a result, Nazara had to adjust its financial statements to show this reduced value. This created a one-time loss on paper. It is important to understand that this loss did not come from Nazara’s daily gaming operations or its overall business health. Instead, it reflects the impact of regulatory shifts on one of its investments. The company clarified that the accounting loss does not affect its cash flow or long-term growth plans.
Revenue Growth Shows Strong Business Momentum
Despite the reported loss, Nazara delivered a significantly stronger revenue performance in Q2 FY26. The company’s revenue grew 65% year-over-year to ₹526 crore, powered by the strong performance of its gaming portfolio. This includes mobile games, PC and console titles, and offline gaming entertainment centers. Popular mobile titles such as Love Island, Big Brother, Animal Jam, and World Cricket Championship continued to attract high engagement. Nazara’s PC and console publishing segment also saw strong traction with globally recognised titles. Even its offline entertainment centers, including Smaaash and Funky Monkeys, witnessed rising footfall and repeat customers. The company also reported a notable rise in EBITDA, which increased sharply to ₹62 crore. This improvement shows that Nazara’s core business is scaling efficiently and profitably despite external challenges in certain parts of the gaming ecosystem.
Market Reaction and Leadership Confidence
Interestingly, the market responded positively to Nazara’s earnings announcement. The company’s shares gained momentum shortly after the results were shared, as investors focused more on the solid operational performance and less on the one-time loss. Nazara also recorded a significant one-time gain by revaluing its stake in Nodwin Gaming, its esports division. This revaluation reflects the long-term value of Nazara’s investments in the esports space and boosts confidence in its broader portfolio. The company’s leadership expressed optimism about the road ahead. They emphasised their commitment to building a global, IP-driven gaming powerhouse backed by strong analytics, artificial intelligence, and user-acquisition capabilities.
What This Means for the Future
When viewed as a whole, Nazara’s Q2 FY26 results show that the company’s long-term growth story remains intact. The accounting loss is temporary and does not harm its operational strength. The strong revenue performance proves that the company continues to expand its presence in India’s booming gaming industry. With a diversified portfolio across mobile games, global PC titles, offline entertainment, and esports, Nazara is well-positioned for future success. The company’s strategic investments and continued focus on innovation signal that it is ready to take on new opportunities in the gaming world.