Mumbai-based listed gaming firm Nazara Applied sciences posted a robust operational efficiency within the second quarter and first half of FY26, at the same time as accounting changes tied to India’s new real-money gaming laws pushed the corporate right into a quarterly loss.

The Mumbai-headquartered agency reported a consolidated internet lack of Rs 29.35 crore in Q2FY26, in contrast with a revenue of Rs 23.83 crore a yr earlier. The loss stemmed from a major write-down of its funding in Moonshine Applied sciences following the federal government’s ban on on-line skill-based real-money gaming.

Regardless of the impairment, Nazara’s working enterprise continued to develop at a fast tempo throughout cellular gaming, PC and console publishing, and offline interactive leisure.

Income from operations for Q2 rose 65% year-on-year to Rs 526.46 crore, supported by stronger retention developments, deeper LiveOps engagement, and a gentle enhance in cross-platform distribution. Sequentially, income grew 5.5%.

For H1FY26, the corporate reported Rs 1,025.2 crore in income, up 80.2% from the earlier yr, whereas EBITDA climbed 118.5% to Rs 109.4 crore. Cell gaming remained the biggest contributor, led by international franchises akin to Love Island, Massive Brother, Kiddopia, Animal Jam, and World Cricket Championship.

Nazara’s PC and console publishing enterprise, anchored by enduring international titles together with Human: Fall Flat, additionally delivered regular efficiency by means of catalogue monetization and platform growth. Offline ventures Smaaash and Funky Monkeys recorded worthwhile progress as properly, benefiting from standardized centre codecs, rising repeat footfall, and disciplined rollouts.

Nazara has additionally begun deploying its Facilities of Excellence in consumer acquisition, analytics, AI, and progress throughout a number of studios, a transfer that’s bettering retention, LTV/CAC, and the general velocity of decision-making.

Through the quarter, the corporate ceased to carry a controlling stake in its esports subsidiary Nodwin Gaming, which was transformed into an affiliate entity. The fair-value remeasurement of Nazara’s retained stake generated a one-time acquire of Rs 1,098.46 crore, contributing to a pointy rise in different earnings to Rs 1,104.46 crore, in contrast with Rs 25.31 crore in the identical quarter final yr.

Complete bills stood at Rs 534.25 crore, up 66.3% year-on-year. The most important hit got here from the regulatory overhaul of the real-money gaming trade. Nazara lowered the carrying worth of its stake in Moonshine Applied sciences to Rs 96.53 crore, leading to a complete impairment of Rs 914.7 crore in Q2.

Moonshine operated platforms together with PokerBaazi and different card-based gaming properties that had been instantly impacted by the brand new On-line Gaming Act. The corporate stated that these are one-time accounting changes and don’t have an effect on working money flows.

Nitish Mittersain, Joint Managing Director and CEO of Nazara Applied sciences, stated that the corporate continued strengthening its place as a world, IP-led gaming platform.

He highlighted the sharp rise in core gaming revenues and EBITDA, pushed by deeper LiveOps engagement, international scale, and robust unit economics throughout cellular, console, and PC. He added that Nazara is evolving from publishing particular person titles to constructing long-term gaming franchises and that the corporate’s Facilities of Excellence are enhancing working leverage throughout the portfolio.

Nazara’s portfolio right now spans Curve Video games, Kiddopia, Animal Jam, Fusebox Video games, World Cricket Championship, and Sportskeeda, along with its increasing offline leisure companies. Even with the regulatory drag on real-money gaming investments, the corporate’s core gaming operations proceed to realize momentum throughout international markets.