Nazara Technologies Reports Sharp Decline in Q3 Profits Amid Revenue Surge

Nazara Technologies reported a 53.6% decline in net profit for Q3 FY25, despite a 66.8% revenue increase. The decline comes amid strong core gaming revenue growth and strategic acquisitions. The company plans to raise Rs 495 crore for further expansion and long-term value creation.

Gaming giant Nazara Technologies has announced a significant 53.6% drop in its net profit for the third quarter of FY25, amounting to Rs 13.68 crore. This marks a considerable decline from its Rs 29.52 crore profit in the corresponding period last year, as revealed in a regulatory filing.

Despite the profit downturn, Nazara's revenue from operations soared to Rs 534.7 crore in Q3 FY25, up by 66.8% from Rs 320.4 crore in the same quarter of the previous year. The company credits this surge to the strong performance in its core gaming segment, bolstered by acquisitions such as Fusebox Games and robust results from existing games like Animal Jam.

The company is also pursuing further growth strategies, including a Rs 495 crore fundraising initiative via a preferential equity issue to Axana Estates LLP. This move aims to provide financial flexibility for additional acquisitions and bolster organic growth, ultimately driving long-term value creation.