Nazara Tech shares rally despite Q2 loss; What's driving the momentum?

Nazara Tech shares gained 5 per cent despite a ₹29.35 loss in Q2FY26 compared with a net profit of ₹23.83 crore a year earlier

Shares of Nazara Technologies advanced nearly 5 per cent on Thursday despite a ₹29.35 loss in the September quarter, as management said that the momentum in the core gaming remained strong. 

 

The gaming company's stock rose as much as 4.94 per cent during the day to ₹270 per share, the biggest intraday rise since October 1 this year. The Nazara Technologies stock pared gains to trade 3.9 per cent higher at ₹267.4 apiece, compared to a 0.05 per cent decline in Nifty 50 as of 09:56 AM. 

 

Shares of the company rose for the second day and currently trade at 6.6 times the average 30-day trading volume, according to Bloomberg. The counter has risen 6.5 per cent this year, compared to a 9.2 per cent advance in the benchmark Nifty 50. Nazara Technologies has a total market capitalisation of ₹9,943.28 crore.   CATCH STOCK MARKET UPDATES TODAY LIVE

Nazara Technologies Q2 results 

The gaming firm reported a ₹29.35 crore consolidated net loss in the second quarter of FY26 (Q2FY26), compared with a net profit of ₹23.83 crore a year earlier. In the previous quarter (Q1FY26), Nazara had reported a profit of Rs 53.46 crore.

 

The loss in this quarter was mainly driven by a write-down of the company’s investment in Moonshine Technologies after the government imposed a ban on real-money gaming.

 

Nazara’s revenue from operations surged 65 per cent year-on-year to ₹526.46 crore from ₹318.94 crore in Q2FY25, and rose 5.5 per cent sequentially from ₹498.77 crore. The company also recorded an exceptional jump in other income, which soared to ₹1,104.46 crore from just ₹25.31 crore a year earlier

 

“Nazara continued strengthening its position as an IP-led, global gaming platform. We are evolving from publishing individual games to building and scaling long-term franchises,” said Nitish Mittersain, joint managing director and chief executive officer of Nazara Technologies. “The accounting adjustments this quarter, including the Moonshine impairment and Nodwin fair value gain, are one-time items and do not impact operating cash flows or the momentum of our core business.”  ALSO READ | Tata Steel shares gain 3% after Q2 results, ₹1,100-crore acquisition

Segmental performance

Mobile gaming remained the key growth driver, led by global franchises such as Love Island, Big Brother, Kiddopia, Animal Jam, and WCC, supported by new content seasons and strong user engagement, the company said. 

 

Nazara’s PC and console publishing segment maintained steady performance through evergreen titles like Human: Fall Flat, along with incremental gains from catalogue monetisation and platform expansion, according to the company. Its offline entertainment brands, Smaaash and Funky Monkeys, recorded profitable growth driven by standardised operations, higher repeat footfall, and disciplined expansion.