Nazara Technologies Q4 Review: Dolat Capital Revises Rating To 'Add' Post Mixed Results; Hikes Target Price

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Dolat Capital Report

Nazara Technologies Ltd.’s Q4 FY25 revenue declined 2.7% QoQ (our estimate: -20%), with a beat led by Gaming vertical (Fusebox, up 33% QoQ) and eSports (Nodwin, lower than exp. decline). Operating profit margin was a miss, reporting loss of -0.5% due to loss in Nodwin, lower op. perf. in Kiddpia & Fusebox, and a Rs 165 million impairment in Brandscale unit within Nodwin subsidiary.

Under ‘Nazara 3.0’ strategy, the company is focused on developing a diverse gaming platform at scale – be it online or offline gaming, with multiple demographics - from kids to adults, spanning presence in India & abroad, supported by multiple revenue streams.

Nazara is expected to double down on accelerating FY26 growth by focusing on organic biz. and the recently acquired biz, although profitability may see volatility. We raise our FY26E/FY27E earnings estimates by 6.1%/3.5% and revise our rating to ‘Accumulate’ with a DCF-based target price of Rs 1,425 (implies ~55x on FY27E EPS).

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