Nazara Technologies Ltd., India’s only listed gaming and sports media company, has announced a powerful combination of corporate actions following its stellar Q1 FY26 performance. The Board of Directors has approved a 1:2 stock split and a 1:1 bonus issue, signaling strong confidence in the company’s growth trajectory and commitment to enhancing shareholder value.
Key takeaways from the announcement:
- Each equity share of ₹4 face value will be split into two shares of ₹2
- Post-split, shareholders will receive one bonus share of ₹2 for every ₹2 share held
- These actions aim to improve liquidity, broaden retail participation, and reward long-term investors
- The record date for the bonus issue will be announced separately
- The company also approved an increase in authorized share capital from ₹50 crore to ₹80 crore
Q1 FY26 financial performance:
Nazara’s latest quarterly results underscore its operational strength and strategic execution.
- Consolidated revenue from operations surged 99.5 percent year-on-year to ₹498.8 crore
- Net profit more than doubled to ₹51.34 crore, up from ₹23.6 crore in Q1 FY25
- EBITDA rose 87.4 percent to ₹47.4 crore, with core gaming margins at 24.4 percent
- Growth was driven by Fusebox Games, Animal Jam, and Curve Games
- Centers of Excellence in User Acquisition and Analytics played a key role in performance optimization
Strategic rationale behind stock split and bonus issue:
Nazara’s dual corporate actions are designed to align with its long-term investor engagement strategy.
- The stock split lowers the entry barrier for retail investors, making shares more accessible
- Bonus shares serve as a reward mechanism for existing shareholders, reflecting strong fundamentals
- Enhanced liquidity is expected to improve trading volumes and price discovery
- These moves also signal management’s confidence in sustained profitability and future expansion
Leadership and boardroom updates:
Nazara is also strengthening its leadership bench to support its ambitious growth plans.
- Rohit Sharma appointed as Whole-time Director and Executive Director for a five-year term starting August 13, 2025
- Rajiv Agarwal resigned as Non-Executive Non-Independent Director due to professional commitments
- The Board expressed appreciation for Agarwal’s contributions and welcomed Sharma’s expertise in gaming and digital media
Portfolio diversification and global footprint:
Nazara continues to expand its gaming and media ecosystem across geographies and platforms.
- Key brands include Kiddopia, Animal Jam, Fusebox Games, Curve Games, World Cricket Championship, and Sportskeeda
- Offline gaming presence through Funky Monkeys and Smaash Entertainment
- Operates Datawrkz, a digital ad-tech business
- Active in India, North America, and other global markets with a focus on IP-led publishing and user engagement
Investor sentiment and market impact:
The announcement has generated positive momentum in the market.
- Shares of Nazara Technologies rose 2 percent following the news
- Analysts view the stock split and bonus issue as value-accretive and liquidity-enhancing
- The company’s strategic clarity and financial discipline continue to attract institutional and retail interest
Looking ahead:
Nazara is poised to leverage its IP-driven strategy and global partnerships to scale further.
- Plans to reinvest in expanding its IP portfolio and strengthening user acquisition
- Focus on integrating entertainment franchises like Barbie, Big Brother, and Little Angel to boost engagement
- Continued emphasis on organic growth and strategic acquisitions to build a comprehensive gaming platform
Nazara Technologies’ latest moves reflect a blend of financial strength, strategic foresight, and investor-centric governance. With its robust Q1 performance and shareholder-friendly initiatives, the company is well-positioned to lead India’s gaming revolution and expand its global footprint.
Sources: CNBC TV18, BusinessWorld, Rediff MoneyWiz, Economic Times, Outlook Business
