Nazara Technologies in Focus After ₹486 Cr Block Deal; Q4 PAT Increases 1,258%

Synopsis:- A morning block deal transferring 4.9 percent of equity for Rs.486.10 crore, combined with a Q4 FY26 PAT surge of over 13x to Rs.55.7 crore and an EBITDA margin recovery to 18.6 percent, sent shares of India’s only listed gaming company up as much as 18 percent intraday on May 15; while the quarter marks genuine operational improvement, full-year FY26 profitability rested almost entirely on non-operating gains from NODWIN’s deconsolidation rather than the underlying gaming business.

Shares of India’s only listed gaming company recorded their largest single-day rally since August 2022 on Friday, May 15, 2026, climbing as much as 18 percent intraday to Rs.314 on BSE. The surge followed a Rs.486.10 crore morning block deal in which 1.82 crore shares of approximately 4.9 percent of total equity changed hands at a floor price of Rs.266 per share, coinciding with Q4 FY26 earnings that showed a sharp recovery in profitability and operating margins.

With a market capitalization of Rs. 11,025.04 crore, the shares of Nazara Technologies Limited were last trading at Rs.297.6 per share, down 0.78 percent from its previous closing price of Rs. 299.95. It is trading at a P/E of 32.16.

Bulk trade data and market sources indicate that Zerodha co-founder Nikhil Kamath and existing institutional shareholder Axana Estates LLP were the buyers in the transaction, with Axana Estates reportedly adding to its existing 5.4 percent position. Kamath, who holds equity through Kamath Associates (1.62 percent) and NKSquared (1.89 percent), is understood to have further increased his exposure.

On the other side of the trade, founder, Joint MD, and CEO Nitish Mittersain, alongside promoter group entity Mitter Infotech LLP, is believed to have monetised part of a promoter position  Mittersain directly held a 2.18 percent stake as of the March 2026 quarter. Two separate disclosures from this transaction warrant attention: the floor price of Rs.266 was set ahead of the earnings release, and 55.9 percent of total promoter holdings remain pledged, a number that deserves tracking as ownership continues to shift.

The quarter was a genuine improvement over Q4 FY25. Consolidated revenue came in at Rs. 397.8 crore against Rs. 519.8 crore a year ago, a 23.5 percent decline that reflects the deconsolidation of NODWIN Gaming from August 2025 onwards  adjusting for this structural change, management indicated that core revenue grew approx 8 percent YoY. 

EBITDA reached Rs. 74 crore at a margin of 18.6 percent, compared to roughly Rs. 35 crore and 6.7 percent in Q4 FY25. The approx 1,190 basis-point margin expansion largely reflects the removal of a lower-margin segment from consolidation. PAT stood at Rs. 55.7 crore versus Rs.4.1 crore in the year-ago quarter, though the Q4 tax rate turned negative (approximately -31 percent), which amplified reported earnings at a normalised 25 percent tax rate, Q4 PAT would have been closer to Rs.32 crore.

The full-year picture requires closer reading. FY26 consolidated revenue grew to Rs.1,829 crore from Rs.1,624 crore in FY25, and full-year PAT improved to Rs.82 crore from Rs.51 crore. At the operating level, however, EBITDA for the full year was negative at -Rs.29 crore, pulled down by a severe Q2 FY26 (September 2025 quarter) where operating losses reached Rs.164 crore and a Rs.914.70 crore impairment charge was disclosed alongside the FY26 results. Full-year profitability was sustained almost entirely by Rs.343 crore in other income, largely from the NODWIN deconsolidation gain, compared to Rs.80 crore in the prior year.

Management targets organic revenue growth of 15 to 20 percent in FY27, with core gaming margins projected to reach 25 percent by year-end from 19.5 percent in the March quarter. The company announced its largest-ever international acquisition, a 50 percent controlling stake in UK/Spain-based social gaming studio Bluetile Games and its BestPlay Systems engagement platform for $100.3 million (approx Rs.918 crore), adding approx $153.6 million in annualised revenue.

A preferential warrant issue of Rs.500 crore has been approved, drawing in Riambel Capital, S Gupta Family Investments, and Plutus Investment. The board was strengthened by the appointment of Mithun Sacheti, founder of CaratLane, as a Non-Executive Director.

Business Overview

Nazara Technologies Limited, incorporated in India, is India’s only publicly listed gaming and sports media company. Its portfolio spans Kiddopia, Animal Jam, Curve Games, Fusebox Games, and World Cricket Championship in gaming; Sportskeeda in sports media; and Datawrkz in ad tech, with a presence across India, Africa, and North America. In FY26, consolidated revenue grew 12.6 percent to Rs.1,829 crore, with full-year PAT at Rs.82 crore.

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