Nazara Technologies Ltd Management Discussions

GLOBAL GAMING INDUSTRY

The global gaming market is estimated at US$ 265.9 billion in CY 2025 and is expected to reach US$ 435.4 billion by CY 2030, reflecting a CAGR of 10.40% during the forecast period. This strong momentum is fuelled by factors such as deeper internet penetration and the rapid spread of smartphones, which are making gaming more accessible across regions and age groups. Gaming has evolved into a mainstream digital activity and a leading form of entertainment. Mobile gaming now leads the charge, offering engaging, on-the-go experiences to a wide audience. Online gaming is also seeing significant traction, driven by the rise of esports, fantasy platforms, and innovative monetisation models that continue to unlock new revenue streams.

KEY DRIVERS AND TRENDS Connectivity and Mobile Expansion

By early CY 2025, the number of internet users worldwide reached 5.64 billion, up from 3.73 billion in CY 2018. This growth momentum reflects the deepening penetration of digitisation across the world. Mobile gaming is expected to account for nearly 50% of the overall global gaming market share by CY 2025, driven by accelerating smartphone adoption. As a case in point, smartphone penetration is projected to reach 94% in Asia-Pacific and 93% in Latin America by CY 2030. The strengthening of mobile access is supporting it into becoming the dominant platform for gaming engagement.

Growth of Cloud Gaming

The rapid expansion of 5G networks is fuelling the rise of cloud gaming, with the Asia-Pacific region expected to reach around 1.54 billion 5G subscriptions by the end of CY 2025. These networks enable users to stream high-quality games without dedicated hardware, thanks to strategic telecom partnerships and recent platform policy changes, such as the acceptance of cloud gaming apps on major app stores.

Rise of Esports and Fantasy Gaming

Esports is steadily becoming a mainstream spectator sport, drawing large audiences and global sponsorships. This growth is reflected in the rising popularity of the Esports World Cup, launched in CY 2024. The tournament is set to gain further ground in CY 2025 with Saudi Arabia as the host. Meanwhile, fantasy gaming and competitive league formats are generating additional revenue streams through advertising, ticket sales, and merchandise.

Advancements in Immersive Technologies

Technologies such as Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR) are increasingly being integrated into game design. The proliferation of such technologies is boosting immersive and interactive experiences. Additionally, AI-driven characters and procedurally generated environments are elevating player experiences. Furthermore, the emergence of blockchain and NFT-based features in mobile and PC games is opening up new monetisation possibilities and asset ownership models.

[Source: https://www.mordorintelligence.com/industrv-reports/global-gaming-market. https:// worldpopulationreview.com/countrv-rankings/internet-users-bv-countrvl

INDIAN ONLINE GAMING INDUSTRY

Indias gaming sector has delivered another year of strong performance, catalysed by a surge in mobile-first adoption and rising digital monetisation. Industry revenues climbed to US$ 3.8 billion in FY 2023-24, up from US$ 3.1 billion in FY 2022-23, with the market projected to surpass US$ 9.2 billion by FY 2028-29. Thus, reflecting a robust CAGR of almost 20% between FY 2023-24 and FY 2028-29.

Gaming enthusiasts in India continued to grow in numbers, reaching 591 million users by the end of FY 2023-24. Consequently, this further fortified the countrys position as the worlds second-largest gaming market. Within this, 148 million users made in-game purchases, marking a 6% rise from the previous year and representing approximately 25% of the total gamer base. The promising growth is supported by the maturing of digital infrastructure. With 936 million internet users and 883 million smartphone users, both registering 8% annual growth, the country is well-placed for a gaming boom.

Simultaneously, engagement metrics also saw a significant uptick. The average weekly time spent on gaming rose from 10 hours the previous year to 13 hours in FY 2023-24, reflecting a 30% increase in playtime. India maintained its global leadership position in mobile game

(Source: Lumikai Interactive Media & Gaming Report 2024)

E: Estimated

Segment Dynamics and Monetisation

Indias gaming market generated US$ 3.8 billion in FY 2023-24, with revenue driven by a mix of in-app purchases (IAPs), Real Money Gaming (RMG), advertising, and other monetisation channels.

• IAPs emerged as the fastest-growing revenue driver, rising 41% year-on-year from US$ 0.5 billion in FY 2022-23 to US$ 0.7 billion in FY 2023-24. IAP is also forecasted to be the fastest growing monetisation model with its revenue contribution estimated to exponentially climb up to US$ 4.3 billion by FY 2028-29. The average revenue per paying user (ARPPU) grew by 15%, from US$ 19 to US$ 22. Notably, over 60% of RMG players also spend on midcore titles, reflecting a rising level of user sophistication and cross-category engagement

• Advertising revenues remained steady at US$ 0.6 billion during FY 2023-24, despite macroeconomic pressures on global ad spending

• Other revenue streams, including merchandise and licensing, contributed US$ 0.04 billion, rounding out the total industry revenue mix

Esports and Livestreaming

Valued at approximately US$ 55-60 million in CY 2023, Esports and Livestreaming currently account for around 1% of Indias digital gaming market. However, with growing interest in competitive formats and expanding audience bases, the segment is poised for rapid expansion. It is expected to expand at a CAGR of 60%, reaching a projected value of US$ 350-370 million by CY 2027.

Government Support & Policy Developments

The Indian Government continues to strengthen its focus on the AVGC (Animation, Visual Effects, Gaming & Comics) sector, including digital gaming. Here are the key markers on this journey:

• In November 2024, Prime Minister Narendra Modi identified gaming as a ‘sunrise sector and encouraged the development of ‘Made in India original IP

• The recently concluded WAVES Summit (May 2025) positioned India as a global hub for media and entertainment innovation. The aftermath of the event had multiple benefits, such as over US$ 1.1 billion in media and entertainment deals, a US$ 1 billion fund to support Indias creator economy (including gaming creators), and the formation of global alliances fostering industry growth

• A National AVGC Centre of Excellence is under development in Mumbai, in collaboration with IIT Bombay, to facilitate R&D, upskilling, and comprehensive ecosystem development

• The Government has implemented new online gaming regulations with enhanced consumer protection measures. Protocols include mandatory registration of real-money gaming platforms with self-regulatory bodies, Aadhaar-based KYC verification, setting spending limits, and formalising age restrictions to protect minors.

(Sources: Lumikai Interactive Media & Gaming Report 2024, Redseer Research and Analysis (Sept 2023)) INDIAN MOBILE GAMING INDUSTRY

Mobile gaming remains the dominant force in Indias gaming landscape, driving growing gamer engagement and heightened content consumption. As of FY 2023-24, India had a gaming population of approximately 591 million, with mobile as the primary playing platform. In fact, over 60% of smartphone users in the country actively play games. Engagement on mobile devices remains strong, with average weekly playtime reaching 13 hours per user, underscoring gamings deep integration into daily digital behaviour. Furthermore, India also retained its position as the worlds largest mobile gaming download market, recording 15.2 billion downloads during the year. Downloads exceeded 3.5 times the volume of the United States and Brazil.

The emergence and rapid adoption of technologies, particularly 5G, are significantly enhancing mobile gaming experiences by reducing latency and improving graphics. The quality upgrade has increased in-game spending, both through microtransactions and subscription models. The user base for mobile gaming is also becoming more diverse and regionally dispersed, with women now comprising 44% of gamers, up from 41% in FY 2022-23, and showing a clear preference for casual titles. Strikingly, 66% of gamers now come from non-metro regions, highlighting the platforms deep reach beyond Tier I cities. Furthermore, 43% of gamers are first-time earners in the 18-30 year age group, demonstrating a strong willingness to pay for value-rich gaming offerings.

Although revenue specific to mobile gaming is not formally reported, the best market estimates indicate that mobile remains the key driver of monetisation. Mobile gaming continues to be a

strong economic force, contributing the majority of in-app purchase revenue (US$ 0.7 billion), advertising income (US$ 0.6 billion), and casual gaming spend. Indias mobile gaming industry is well-poised for a sustained double-digit growth trajectory in FY 2025-26 and beyond. These projections are supported by consistent and deep smartphone penetration, along with the rising adoption of digital payment modes such as UPI and digital wallets.

Over 60% of Indias Smartphone Users Play Games

ABOUT NAZARA TECHNOLOGIES

Nazara Technologies Limited (‘Nazara or ‘The Company) is Indias only publicly listed gaming company. The Company is headquartered in India with a widening global footprint across North America, the Middle East, Africa, and Europe. The Company operates at the confluence of online and offline gaming, sports media, esports, and adtech with a strategic emphasis on high- margin gaming ventures, proprietary IP development, operational excellence and international growth.

The Companys vast gaming portfolio includes widely recognised IPs across diverse genres, geographies and age groups. These include Kiddopia and Animal Jam in the gamified early learning space, as well as World Cricket Championship (WCC), which targets cricket enthusiasts aged 18 to 45. The portfolio also features IP-based interactive simulation titles such as Love Island and Big Brother Games, aimed at young adults. Nazara owns and publishes casual action games such as Crash Arena Turbo Stars and King of Thieves. The Company acquired these two popular global gaming IPs from ZeptoLab, reaffirming its leadership position in the mobile gaming segment in India and overseas. Additionally, the Company owns Curve Games, a premium PC and console publisher expanding its presence in global markets. Its recent offline forays include Funky Monkeys and Smaaash, thereby establishing a 360-degree gaming ecosystem across physical and digital experiences. In the skill-based social gaming space, Nazara owns Ultimate Teen Patti (UTP).

The esports and digital sports media verticals are led by NODWIN Gaming and Absolute Sports, respectively. NODWIN delivers strong audience engagement across India and international markets, while Sportskeeda continues to grow as a high-reach, multi-sport content platform. Notably, Pro Football Network (PFN), a subsidiary under Absolute Sports, is emerging as a prominent voice in the US football media ecosystem, accelerating the Companys penetration into Western sports content.

Complementing these verticals, Nazaras adtech capabilities are powered by Datawrkz and its UK-based acquisition, Space & Time, enabling programmatic and performance-driven advertising at a global scale.

With a broad spectrum of capabilities, Nazara sought to unify its diverse portfolio and accelerate value creation through deep interconnectedness under a single platform. The vision has taken the form of a strategic framework focussed on deepening integration across verticals through IP ownership, operational excellence, and platform leverage. To enable this transformation, the

Company has established dedicated Centres of Excellence (CoEs) focused on user acquisition, analytics, AI, growth, technology, finance and HR to drive cross-group synergies and support organic scaling. Complementing this approach is a sharp focus on high-margin, capital-light :ore gaming segments, while enhancing publishing and monetisation capabilities to support ong-term profitability.

Backed by disciplined capital allocation and a strong track record of value-accretive M&A, Nazara is steadily evolving into a globally competitive gaming powerhouse, combining domestic leadership with strategic international expansion.

Competitive Strength	Key Details
Only Diversified	• Geographic Distribution: Well diversified and sizable revenue
Player in India	contributions from all key regions, including India, developed markets (primarily North America and Europe), and other emerging markets across the Middle East, Africa and Asia
	• Business Model: In-App Purchases, Advertising, Subscription, Premium PC/Console Title Sales, Media Rights, Brand Sponsorships, and Entry Ticketing
	• User Segments: Caters to diverse user groups, including kids, adults, families and women
	• Business Segments: Gaming (gamified early learning, narrative-based simulation, casual, PC-Console gaming), offline entertainment, esports, sports media, and adtech
IP-Owned Assets	• Holding licensed Intellectual Property (IP) across all gaming and interactive media categories
	• Engaging in 100% in-house content development
	• Specialises in creating proprietary software and game engines internally
Global Distribution	• Global strategic partnerships with Apple, Google, AWS, Appsflyer,
Network	ONDC and many other key ecosystem participants • SEO optimisation and social media distribution
	• Pipelines and networks across Africa, the Middle East, and South Asia

 

Competitive Strength	Key Details
Strong Profitable Growth and Capital Position	• Strong and profitable growth, 43% revenue growth in FY 2024-25 compared to FY 2023-24 • Cash position of 665.4 Crores as of March 31, 2025

Business Overview of Nazara

Nazara has several revenue-generating and EBITDA-generating business segments as of March 31, 2025.

Business Segment	Business Model	Content IP Ownership	IP Name	Contribution FY 2024-25
Gaming	In-app purchases, advertising, subscription, platform fees, and premium PC/console title sales, entry ticketing	Yes	Kiddopia, Animal Jam, World Cricket Championship, Love Island, Big Brother, Funky Monkeys, Ultimate Teen Patti, PokerBaazi, Crash Arena Turbo Stars, King of Thieves, Curve Games, Nazara Telco Distribution	32% of Revenue, 56% of EBITDA
Others	Brand sponsorships, media rights revenue, direct to consumer accessories business revenues, programmatic advertising, digital media buying and planning, self- serve demand side platform, publisher solutions like bidding tools and managing traffic	Yes	NODWIN, Comic Con India, NH7 Weekender, SportsKeeda, Pro Football Network, Soap Central, Datawrkz, Space & Time	68% of Revenue, 44% of EBITDA

EBITDA % contribution is as per the EBITDA reported pre-unallocated corporate costs

OVERALL BUSINESS PERFORMANCE SNAPSHOT

Gaming: Building high-quality IPs to unlock long-term value from the expanding gaming ecosystem

Brand/IP	Sub-Segment	Demographics	Key Market	Monetisation Model	Market Positioning	FY 2024-25 Financials ( Crores)
Love Island, Big Brother	Freemium	18-45 year olds	US (68%+)	In-app purchases, ads	Key Player in the Interactive Story Genre	Revenue: 161.7 EBITDA: 30.1 Margin: 18.7%
Curve Games	PC/Console Publishing	5-45 year olds	North America and Japan (85%+)	Digital sales, buyout and ancillary revenue	Leading PC/ Console Global Publisher	Revenue: 263.5 EBITDA: 114.4 Margin: 43.4%
Kiddopia	Gamified Early Learning	Kids: 2-7 year olds	US (80%+)	Subscription	Among the Top 3 Grossing Apps in its Category	Revenue: 191.8 EBITDA: 43.7 Margin: 22.8%
Animal Jam	Gamified Early Learning	Kids: 8-12 year olds	US (70%+)	In-app purchases, Subscription	#1 Grossing App in its Category	Revenue: 104.9 EBITDA: 21.9 Margin: 20.9%
C.A.T.S. and K.O.T.	Freemium	7-45 year olds	USA	In-app purchases, Ads	Popular IP in Casual Games	Revenue: 53.5
World Cricket Championship (WCC) and Ultimate Teen Patti (UTP)	Freemium	13-45 year olds	India (65%)	In-app purchases, Ads	Worlds Largest Cricket Simulation Game	Revenue: 22.2 EBITDA: 1.8 Margin: 8.2%

 

Brand/IP	Sub-Segment	Demographics	Key Market	Monetisation Model	Market Positioning	FY 2024-25 Financials ( Crores)
Funky Monkeys	Indoor Kids Soft Play/ Gaming and Entertainment	1-14 years olds	India (100%)	Entry Ticketing and Birthday Parties	Key Player in Kids Offline Entertainment	Revenue: 17.0 EBITDA: 7,3 Margin: 43%

Notes:

1. Fusebox is consolidated from August 22, 2024. Revenue and EBITDA disclosed above are for the period of consolidation

2. For Curve Games, revenue and EBITDA numbers are reported for CY 2024. Curve Games was consolidated in the books of Nazara from April 1, 2025

3. Funky Monkeys is consolidated in the books of Nazara from March 1, 2025. Revenue and EBITDA numbers reported above are for the financial year ended March 31, 2025

4. Revenue for CATS IP and KoT IP is reported together above for the calendar year ended December 31, 2024

Love Island and Big Brother

Nazara Technologies acquired UK-based gaming studio Fusebox Games for 228 Crores as a strategic step towards strengthening its global expansion strategy. Headquartered in London and founded in 2016, Fusebox is recognised for interactive narrative-driven and IP-based simulation games such as Love Island. As testament to its influence and popularity, the muchloved game made 116 Crores in revenue and 33 Crores in EBITDA by July 2024 (before Nazaras acquisition). The games are monetised through in-app purchases, which accounted for ~90% of the total revenues in FY 2024-25. They are targeted at developed markets, including the US, UK, Australia, Canada, Switzerland, Sweden, Denmark, Norway, and New Zealand, among others.

Adding to its top TV IP portfolio, Fusebox Games has released Big Brother: a narrative-driven mobile title based on Banijay Entertainments successfully running eponymous reality-television show. The app is now available worldwide on iOS and Android. Developed under licence from Banijay Rights, the global distributor of Big Brother, the game follows the TV format and situates

players inside a virtual version of the physical Big Brother house. The project extends Nazara Technologies strategy of adapting established media properties for interactive markets. To this end, Fusebox has also acquired rights to a Bigg Boss game, which is slated to launch later in the year.

Kiddopia

In FY 2024-25, Kiddopia clocked revenues of 191.8 Crores and EBITDA of 43.7 Crores. While the subscriber count saw a calibrated decline, it witnessed reduced churn in earlier quarters, improved UA costs and enhanced monetisation. This turn of events positions us well to reinvest in upcoming IP launches and reinvigorate subscriber growth in FY 2025-26.

Kiddopia undertook a price increase in January 2025 for its monthly plans, raising it to US$ 12.99 from US$ 9.99, which contributed to the Average Revenue Per User (ARPU) uplift. Further, in FY 2024-25, Kiddopia carefully curated integrations of globally popular childrens IPs into its gameplay, offering an enriched experience for all its subscribers. The integration of widely loved brands such as Little Angel and Barbie into Kiddopia is expected to strengthen subscriber retention and attract new users organically at a lower acquisition cost. This, in turn, has the potential to boost both revenue and margins in the coming quarters. Furthermore, Kiddopia has collaborated with the well-known toy and game company Hasbro to incorporate the PJ Masks-themed activities and games into its digital platform.

Key Metrics	Q4 FY 2023-24	Q1 FY 2024-25	Q2 FY 2024-25	Q3 FY 2024-25	Q4 FY 2024-25
Subscribers	2,55,382	2,46,943	2,37,185	2,32,295	2,28,376
CPT (US$)	39.0	38.6	40.9	43.6	33.7
Marketing Spend (US$ million)	2.4	2.4	2.3	2.3	2.1
Average Activation Rate	66.0%	67.0%	67%	66%	51%
Average ARPU ($)	6.89	6.92	6.95	6.97	6.90
Average Churn	7.3%	6.6%	6.5%	5.7%	6.0%

Animal Jam

Animal Jam, created by Utah-based studio WildWorks, is a highly engaging online platform aimed at children aged 7-12 year old who are interested in animals and nature. The game is available on iOS, Android, Mac, and PC, and offers a blend of world-building and multiplayer games within a safely moderated social environment. With its rich and educational format, Animal Jam has achieved a stable and profitable status, and has become a trusted and beloved edutainment resource for young players.

In FY 2024-25, Animal Jam demonstrated strong year-on-year growth momentum in both revenues and EBITDA, reaching 104.9 Crores and 21.9 Crores respectively. Animal Jam recorded strong momentum in in-app purchases (lAPs) too. This growth was driven by high player engagement with premium content. These featured wishing coins, super boxes, and a range of special themed content, including fantasy creatures like dragons and griffins, T-rex eggs, and gummy boxes. Seasonal highlights such as Night of the Phantoms and Jamaali Days further enriched the gameplay experience. These exclusive additions continue to resonate well with the users, thereby reaffirming the potential of our live ops and monetisation strategy. In January 2025, Animal Jam entered into a partnership with Slinky to bring a fresh dimension to its universe. Building on this collaboration, the brand is developing a new casual mobile game inspired by nostalgic play, crafted to resonate with a wide range of age groups. The game will feature social progression, light strategy, and easy-to-pick-up gameplay, with a strong focus on boosting engagement and accessibility.

Funky Monkeys

In FY 2024-25, Nazara acquired a 60% stake in Funky Monkeys, a leading indoor soft-play and entertainment company for children aged 2 to 14 in Indias Tier 1 cities. The deal was valued at 43.7 Crores, including 15 Crores as primary investment. Nazara will acquire additional stakes in three further tranches, with valuation and purchase obligations tied to the companys actual performance.

The offline gaming space in India has grown substantially in recent years, despite tough challenges posed by the COVID-19 pandemic. Physical gaming venues like Funky Monkeys meet a core need by providing safe and engaging environments for children and families to play, interact, and connect with others.

To capitalise on these gains, Nazara is expanding into offline entertainment with acquisitions like Funky Monkeys and assets like Smaaash. These acquisitions will leverage physical presence and a broad customer base to create seamless interconnectedness between online and offline offerings. This strategy facilitates Nazara to expand reach, elevate customer touchpoints and leverage the post-pandemic demand of immersive experiences. It also supports the integration of frontier immersive technology like AR and VR. The portfolio expansion thus fortifies Nazaras position as a 360-degree entertainment company, with a large and diversified customer base.

In FY 2024-25, Funky Monkeys reported revenue of 17 Crores and EBITDA of 7.3 Crores. However, year-on-year growth remained flat for both. This was primarily due to the temporary closure of the Ahmedabad and Surat centres for six months, following government directives after the Rajkot fire incident. The impact was partially offset by growth in the Chembur and Bandra centres, which had only partial operations in FY 2023-24.

The Company is now focussed on aggressively expanding new centres in India at strategic locations. This growth will further be supported by the upgrade of existing centres, a bold marketing strategy, enhanced customer experiences, and continued innovation.

Telecom Operator-Driven Subscription Business

Nazara provides gaming content to Telecoms globally via white labelled gaming platforms. Nazara has recently launched multi-player gaming services having leaderboard integration with Telcos. Nazara continues to distribute branded games from Disney, Pixar and Star Wars. These high-quality games are offered through Nazaras partnership with leading cellular providers based on paid/freemium models. Nazara has signed new partnerships to expand its Telco business both horizontally and vertically.

OTHER SEGMENTS NODWIN

NODWINs FY 2024-25 revenue grew by a healthy 20% to 523.8 Crores. However, the like- for-like FY 2024-25 revenue growth was much more substantial at 57% y-o-y, accounting for the deconsolidation of Wings.

Freaks 4U Gamings performance reflected seasonal fluctuations. Adjusting for the one-off impact of last-minute cancellation of NH7 Weekender in Pune due to the denial of local police permissions, Q4 EBITDA would have been nearly break-even. The NH7 Weekender took place

in March 2025 across three cities - Jaipur, Indore, and Noida. NODWIN also completed Comic Cons expansion into three new cities, increasing its presence from five to eight locations in FY 2024-25. The Company remains on track to scale up further to 11 Indian cities in FY 2025-26, alongside Comic Cons planned debut in two international markets.

However, NODWINs acquisition of Freaks 4U has not met performance expectations and is currently weighing on overall profitability. The NODWIN team is actively reassessing its strategy and exploring corrective measures to address operational and financial challenges of Freaks 4U. A one-time impairment of 15.3 Crores of equity investments in Brandscale Innovations (Wings) has been secured in Q3 FY 2024-25. There are additional loans and debentures totalling 40 Crores (including 5 Crores interest), which will be provisioned in due course based on their recoverability.

Sportskeeda

Sportskeeda continues to hold a dominant position across multiple sports. In FY 2024-25, it maintained its top 10 ranking among US sports news websites. The average MAUs staged a sharp recovery in H2 FY 2024-25 vs. H1 FY 2024-25, climbing back to their Q4 FY 2023-24 level around 74 million.

Absolute Sports (Group) experienced a 22% increase in revenue and a 19% rise in EBITDA for FY 2024-25.

The core Sportskeeda business continued to grow promisingly with revenue and EBITDA increasing by 25% and 25%, respectively, in FY 2024-25. PFN revenue grew by a robust 51% in Q4 FY 2024-25, reflecting a strong recovery with each quarter.

As of May 2025, Absolute Sports had signed definitive agreements to acquire two IPs, TJRWrestling.net and ITRWrestling.com, from Titan Insider Digital in an all-cash deal valued at US$ 1.25 million (around 10.5 Crores).

Googles March core update resulted in a significant decline in organic traffic at Sportskeeda, aligning with trends observed across several publishers. Other properties in the portfolio, including Pro Football Network and Soap Central, remained stable.

Datawrkz (including Space and Time)

In FY 2024-25, the segment revenue grew by 233%, EBITDA by 137%, with an EBITDA margin of 5.7%.

In FY 2024-25, Datawrkz, through its 100% owned step-down subsidiary Datawrkz Operations UK Limited, acquired 100% of Space & Time Media Limited (S&T) for an equity value of GBP 4.8 million (~? 52.3 Crores). This acquisition is a key move in advancing Datawrkzs growth ambitions across Europe and North America, positioning it as a scaled player in the global digital advertising market. Following the acquisition, S&T has been consolidated into Nazaras financials.

On a standalone basis in FY 2024-25, Datawrkzs revenue and EBITDA grew by 3% and 13%, respectively. This performance reflects the successful shift towards more profitable business lines in its independent Adtech operations. While overall product revenue declined, higher gross margins in Vizibl and other product verticals supported a healthy increase in profitability.

FINANCIAL PERFORMANCE AS A MEASURE OF OPERATIONAL PERFORMANCE

A) Nazara Technologies reported a consolidated operational revenue of 16,239 million in FY 2024-25, reflecting a strong 42.7% year-on-year growth compared to 11,383 million in FY 2023-24. This sharp increase was driven by robust performance across its key verticals: Core Gaming, Esports, and Adtech, supported by strategic acquisitions, improved monetisation, and deeper penetration in developed markets. The Gaming segment continued to deliver high-margin growth, while Esports and Adtech also scaled meaningfully, reinforcing the efficacy of Nazaras multi-engine growth strategy.

Revenue Breakup According to Segments is as Follows

(in million)

Revenue from Operations	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024	% Change
Gaming	5,182	4,064	28
Esports	7,634	6,317	21
Adtech	3,456	1,037	233
Total Operational Revenue	16,272	11,418	43
Inter Segment Revenue	(33)	(35)	(6)
Other Income	915	796	15
Total Income	17,154	12,179	41
EBITDA	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024	% Change
Gaming	1,030	809	27
Esports	615	630	(2)
Adtech	196	83	136
Unallocated	(306)	(243)	26
Total EBITDA	1,535	1,279	20

Year-on-Year Segment-Wise Revenue Performance Analysis:

Gaming

Kiddopia

Kiddopia delivered revenue of 191.8 Crores and EBITDA of 43.7 Crores in FY 2024-25, reflecting a margin of 22.8%. Profitability was supported by disciplined user acquisition (UA) spending and strategic pricing changes, including a shift in monthly plan rates from US$ 9.99 to US$ 12.99. IP integrations such as Little Angel (Moonbug) and Barbie (Mattel) improved user engagement and ARPU, setting the stage for renewed subscriber growth in FY 2025-26.

Animal Jam

Animal Jam achieved 11% organic revenue growth to 104.9 Crores and a 16% rise in EBITDA to 21.9 Crores, maintaining a healthy margin of 20.9%. Growth was driven by high in-game engagement, premium content drops, and live ops strategy. A new casual game, developed in partnership with Slinky, is expected to expand the titles audience base in FY 2025-26.

Fusebox Games

Consolidated from August 2024, Fusebox reported revenue of 161.7 Crores and EBITDA of 30.2 Crores for the period. Strong performance of Love Island and investment in UA drove top-line expansion, with upcoming launches like Big Brother and Bigg Boss expected to further build momentum in FY 2025-26.

ZeptoLab (C.A.T.S. and King of Thieves)

Nazara acquired the globally successful IPs Crash Arena Turbo Stars (C.A.T.S.) and King of Thieves in FY 2024-25, further strengthening its mobile casual gaming portfolio and enhancing direct IP ownership at the parent level. The titles contributed revenue of 53.5 Crores in the calendar year ended 31^st December, 2024. Thereby reflecting their strong user retention and monetisation potential across global markets.

Curve Games

Revenue by Segment (FY 2024-25)
Adtech	345.6 Crores
Esports	763.4 Crores
Gaming	518.2 Crores

Acquired for 247 Crores in FY 2024-25, Curve Games is a premium PC/console game publisher based in the UK. With a portfolio that includes Human: Fall Flat and For The King, the Company reported revenue of 263.5 Crores and EBITDA of 114.4 Crores in 2024. Thus, indicating strong operating leverage. Curve is expected to play a pivotal role in enabling Indian game developers to access global publishing platforms.

Funky Monkeys

Nazaras 60% stake in this indoor play centre chain contributed 17 Crores in revenue and 7.3 Crores in EBITDA in FY 2024-25. While temporary closures in Gujarat limited growth, performance rebounded in the second half, supported by strong traction in Chembur and Bandra. FY 2025-26 will focus on expansion, centre upgrades, and CRM-led marketing to boost footfall.

ESPORTS AND YOUTH IPS NODWIN Gaming

Revenue for FY 2024-25 stood at 523.8 Crores, with an EBITDA loss of 15.4 Crores. The performance was impacted by exceptional costs related to the cancellation of NH7 Weekender and Freaks4U. However, the business demonstrated robust momentum with the expansion of Comic Con IPs from five to eight cities, strong partnerships with YouTube and Meta, and marquee tournaments like BGMS (Star Sports) and the VALORANT Championship. Strategic focus remains on IP-led growth, international markets, and brand monetisation.

Sports Media

Sportskeeda and Pro Football Network (PFN)

Absolute Sports delivered 22% y-o-y revenue growth and 19% EBITDA growth in FY 2024-25. Core Sportskeeda revenue and EBITDA grew by 25% each, with PFN revenue up 51% in Q4. Recent acquisition of two wrestling media IPs from Titan Insider aims to deepen content offerings in niche verticals.

Adtech

Datawrkz and Space & Time

In FY 2024-25, the consolidated revenue was 345.6 Crores, up 233% y-o-y, with EBITDA of 19.6 Crores. The year witnessed a strategic shift to higher-margin verticals and a successful acquisition of UK-based adtech firm Space & Time for 52.3 Crores. Despite the loss of a major client, the addition of 38 new clients (contributing 15% to revenue) offset this impact. FY 2025-26 will focus on deeper integration and global account expansion.

B. Expenses: Snapshot Operating Costs

1. Advertising and Promotion (in million)

Particulars	For the Year Ended	For the Year Ended	% Change
	March 31, 2025	March 31, 2024
Advertising and	3,768	1,775	112
Promotion

Advertising and Promotion expenses for FY 2024-25 stood at 3,768 million compared to 1,775 million in FY 2023-24, reflecting a 112% change. The previous years 26% reduction was largely driven by Kiddopias optimisation of user acquisition strategies and lower marketing intensity. Advertising and promotion costs constituted 25.6% of total operating expenses in FY 2024-25, compared to 17.6% in FY 2023-24 and 24.4% in FY 2022-23.

2. Commission Expenses

Commission expenses, primarily consisting of App Store and Google Play fees across Kiddopia, Animal Jam, and IAP-driven games like WCC3, totalled 1,110 million in FY 2024-25, compared to 686 million in FY 2023-24. These costs represented 6.8% of total revenue in FY 2024-25, against 6.7% in FY 2023-24 and 5.5% in FY 2022-23, reflecting the Companys continued investment in IAP-led monetisation.

(in million)

Particulars	For the Year Ended	For the Year Ended	% Change
	March 31, 2025	March 31, 2024
Commission	1,110	686	62

3. Other Expenses

Other operating expenses, including legal and professional fees, travel and conveyance, rent, taxes, and general office costs, were 1,467 million in FY 2024-25, as against 1,079 million in FY 2023-24, a 36% variation. These costs accounted for 10% of total operating expenses, broadly in line with the previous years 10.6%, as the Company expanded operations across new geographies and business units.

(in million)

Particulars	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024	% Change
Other Expenses	1,467	1,079	36

4. Purchases, Content, Event and Web Server Costs

This expense head, which includes event costs (notably for NODWIN Gaming), content licensing, publishing costs, and server infrastructure, stood at 5,485 million, up from 4,703 million in FY 2023-24, representing a 17% increase. The segment accounted for 37.3% of total operating expenses in FY 2024-25, driven by increased scale of offline events and new game launches during the year.

(in million)

Particulars	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024	% Change
Purchases, Content,	5,485	4,703	17
Event and Web Server
Costs

5. Employee Benefits

Employee-related expenses amounted to 2,874 million in FY 2024-25, up from 1,860 million in FY 2023-24, marking a 55% increase. As Nazara scaled its global workforce and enhanced internal capabilities across its Group companies, employee benefits represented 17.7% of revenue, compared to 18.4% in FY 2023-24.

Non-Operating Costs

(a) Impairment Losses (in million)

(in million)

Particulars	For the Year Ended	For the Year Ended	% Change
	March 31, 2025	March 31, 2024
Impairment Losses	318	283	12

Company-Wise Break Up of Impairment Losses

(in Lakhs)

Particulars	For the Year Ended March 31, 2025
Impairment loss for impairment of Investment in NODWIN Gaming Private Limited	2,584
Impairment loss for impairment of Investment in Nazara Pte Ltd	102
Impairment in financial assets in Nazara Technologies Limited	492
Total	3,178

Although the Company experienced significant revenue growth and expanded its operations, it was able to control other expenses by closely monitoring its costs.

(b) Finance Cost

Finance costs for FY 2024-25 stood at 99 million, as compared to 68 million in FY 2023-24, reflecting an increase primarily driven by Wings working capital structure. Wings is the Companys mobile accessories brand operated through Brandscale Innovations Private Limited. As an inventory-heavy business, Wings availed loan facilities and issued nonconvertible debentures to support its operations, which contributed to the higher interest burden during the year.

(in million)

Particulars	For the Year Ended	For the Year Ended	% Change
	March 31, 2025	March 31, 2024
Finance Costs	99	68	46

(C) Depreciation and Amortisation

Depreciation and amortisation expenses amounted to 1,177 million in FY 2024-25, compared to 670 million in FY 2023-24. Thus, marking a year-on-year increase due to the continued consolidation of acquired businesses. Over the past few years, Nazara has undertaken multiple acquisitions, resulting in a build-up of intangible assets, including goodwill, brand IPs, and licences. While goodwill is tested annually for impairment and not amortised, brands are amortised over ten years, licences over their useful life, and other intangible assets typically over six years. The increase in amortisation for FY 2024-25 reflects the inclusion of new subsidiaries acquired during the year.

(in million)

Particulars	For the Year Ended	For the Year Ended	% Change
	March 31, 2025	March 31, 2024
Depreciation and	1,177	670	76
Amortisation

Consolidated EBITDA Performance: Snapshot

In FY 2024-25, the Company recorded consolidated EBITDA of 1,535 million, compared to 1,279 million in FY 2023-24, representing a year-on-year change of 20%. The EBITDA margin for the year stood at 9.5% as against 11.2% in the previous year, reflecting the impact of both business consolidation and operational efficiencies across key verticals.

Particulars	FY 2024-25 ( in million)	FY 2024-25 (%)	FY 2023-24 ( in million)	FY 2023-24 %
EBITDA	1,535	9.5	1,279	11.2
Segment-wise EBITDA Performance: Snapshot
Particulars	FY 2024-25 ( in million)	FY 2024-25 (%)	FY 2023-24 ( in million)	FY 2023-24 %
Esports	615	8.1	630	10.0
Gaming	1,030	19.9	809	19.9
Adtech	196	5.7	83	8.0

Year-on-Year Segment-Wise EBITDA Performance Analysis:

Gamified Early Learning]

In Kiddopia, optimised ad spending and refined subscription pricing models resulted in an EBITDA of 437 million in FY 2024-25, compared to 561 million in FY 2023-24. Revenue remained steady, supported by content partnerships and product-led growth. Animal Jam delivered improved monetisation, supported by higher in-game engagement and retention strategies. EBITDA rose from 188 million in FY 2023-24 to 219 million in FY 2024-25.

Esports

The Esports segment, led by NODWIN Gaming and Playground, reported an EBITDA of (155) million for FY 2024-25, compared to (18) million in FY 2023-24. Margin volatility during the year was offset by stronger IP monetisation, international expansion, and brand collaborations.

Freemium

Freemium gaming delivered EBITDA of 18 million in FY 2024-25, compared to 40 million in FY 2023-24. While user engagement remained stable, profitability was affected by UA investments in newly acquired IPs.

Telco Subscription

The Telco Subscription business recorded EBITDA of 63 million in FY 2024-25, up from 5 million in the previous year, despite continued macro headwinds and shifts in mobile content consumption.

Adtech

Nazaras Adtech operations, including Datawrkz and Space & Time, contributed EBITDA of 196 million in FY 2024-25, up from 83 million in FY 2023-24. The shift towards higher- margin verticals and global client expansion supported this growth. The Company remains focussed on sustaining leadership across high-growth verticals such as interactive gaming, gamified early learning, and esports, while maintaining a disciplined approach to profitability.

Company-Wise Financial Reporting ( million)

Revenue ( million)	Nature of Relationship	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024	% YoY Growth
NODWIN Gaming Private Limited (Consolidated)	Subsidiary Company	5,238	4,271	23
Absolute Sports Private Limited (Consolidated)	Subsidiary Company	2,396	1,960	22
Paper Boat Apps Private Limited (Consolidated)	Subsidiary Company	1,918	2,194	(13)
Nextwave Multimedia Private Limited	Subsidiary Company	222	219	1
Openplay Technologies Private Limited	Subsidiary Company	210	374	(44)
Datawrkz Business Solution Private Limited (Consolidated)	Subsidiary Company	1,071	1,038	3
Space & Time Group Limited (Consolidated)	Step down Subsidiary Company	2,385
Fusebox Games Limited	Step down Subsidiary Company	1,617
Funkey Monkeys Play Centers Private Limited	Subsidiary Company	13

 

EBITDA	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024
NODWIN Gaming Private Limited (Consolidated) Absolute Sports Private Limited (Consolidated) Paper Boat Apps Private Limited (Consolidated)	(155)	(18)
	770	648
	437	561
Nextwave Multimedia Private Limited	18	40
Openplay Technologies Private Limited	(1)	22
Datawrkz Business Solution Private Limited (Consolidated) Space & Time Group Limited (Consolidated) Fusebox Games Limited Funkey Monkeys Play Centers Private Limited	93	83
	102	-
	302	-
	5	-

Cash Flow and Net Worth

Nazara ended FY 2024-25 with consolidated cash and near-cash reserves (including current investments) of 6,654 million, as against 14,582 million as of March 31, 2024. During the year, the Company continued to maintain a strong balance sheet, with most Group entities remaining debt-free.

The year also witnessed the strategic deployment of capital through acquisitions and minority stake buyouts. Net investments of 15,586 million were made towards business expansion and consolidation. Adjusting for these, the Company recorded a net decrease in cash and nearcash reserves of 7,889 million in FY 2024-25.

Nazaras consolidated net worth grew from 19,986 million in FY 2023-24 to 28,630 million in FY 2024-25, reflecting strong earnings accretion. Basic earnings per share (EPS) stood at 10.86 in FY 2024-25, compared to 10.28 per share in the previous year.

Particulars	For the Year Ended March 31, 2025	For the Year Ended March 31, 2024	Reasons for Change
Net cash generated from/used in operating activities	655 million	909 million	Cash outflow increased in investing activiities due to investment on new acquisition (net) / additional shares.
Cash generated from/(used in) investing activities	(16,587) million	(2,255) million
Cash generated from financing activities	8,048 million	9,738 million

Cash and Cash Equivalents

As of March 31, 2025, the Company reported cash and near-cash reserves (including current investments and bank deposits) of 6,654 million, compared to 14,582 million at the end of FY 2023-24. The decline was primarily due to strategic investments and acquisition-related outflows during the year. Despite the capital deployment, Nazara and the majority of its subsidiaries continued to maintain a debt-light structure, with total borrowings of 1,413 million.

The Companys net worth increased to 28,630 million in FY 2024-25, compared to 19,986 million in the previous year, reflecting strong earnings momentum and capital expansion. Basic Earnings Per Share (EPS) for FY 2024-25 stood at 10.86, maintaining a growth trajectory from 10.28 in FY 2023-24.

Statement of Key Ratios:

Types of Ratios	FY 2024-25	FY 2023-24	% Change	Explanation for Change
Interest Coverage	8.83	16.21	(45.51)	Reduction in ratio is attributed to increase in interest and decrease in earning before interest. Reduction in ratio is attributed to greater increase in current liabilities and decrease in current assets majorly due to utilisation of cash balance for investment and expansion.
Ratios (Times)
Current Ratio (Times)	1.61	4.97	(67.53)
Debt-Equity Ratio (Times)	0.04	0.00	997.68	Change in ratio is due to greater increase in debt vis-a-vis increase in equity during year.
Debtors Turnover	3.82	4.94	(22.71)	Improvement in receivables management.
Operating Profit Margin	9.45	11.24	(15.87)	Lower operating margin
Net Profit Margin	3.85	7.86	(51.00)	Lower operating margin
Return on Net Worth	2.18	4.48	(51.21)	Change in ratio is attributed to greater increase in shareholders equity and decrease in profit.

Commentary on Key Growth Drivers & Investment

• The Centres of Excellence (CoE) playbook: Our Centres of Excellence in UA, Analytics, and AI are rapidly coming online, embedding cross-group efficiencies and unlocking scale organically. These shared capabilities are already enabling faster product cycles, more targeted user engagement, and improved capital productivity across the Group. We have also set the ball rolling for a few additional CoEs, including critical functional areas such as Technology, Growth, Finance and HR.

• Licensing of globally resonant IPs: In FY 2024-25, Nazara sharpened its IP-licensing playbook to speed market penetration, drive organic user acquisition, raise engagement, and improve retention. For Kiddopia, partnerships with Little Angel, Barbie and PJ Masks are already live, while for Animal Jam, an agreement between Slinky and Animal Jam was signed in January 2025 to work on and launch a new casual mobile game inspired by nostalgic play, designed for broad appeal across age groups.

• New games as a key driver of organic growth: As part of our approach to truly function as a fully unified, strategically aligned platform with deep operational expertise at the disposal of our portfolio companies, we have closely collaborated with our Group companies to seed, develop and launch new games and new centers (for offline businesses). For instance, Fusebox Games completed the global release of the Big Brother game in May 2025 and is in the process of launching the Bigg Boss game in India in FY 2025-26.

Details of the Investments made by Nazara as of March 31, 2025

During FY 2024-25, Nazara strategically deployed capital across its core and adjacent business verticals to strengthen platform capabilities, acquire valuable IPs, and deepen its global footprint. Total investments during the year amounted to 15,587 million (net of cash), reflecting the Companys focussed approach towards long-term value creation through synergistic acquisitions and stake consolidations. Notable investments included the acquisition of Curve Games, marking Nazaras entry into premium PC and console publishing; Fusebox Games, which expanded the simulation and narrative mobile portfolio; and global IPs such as C.A.T.S. and King of Thieves from ZeptoLab. NODWIN Gaming, a key pillar of the Companys esports strategy, raised 1,900 million from marquee investors and completed several high-impact acquisitions, including Comic Con India, Publish.Me, Branded, and a minority stake in Freaks4U. In the Adtech vertical, the acquisition of UK-based Space & Time Media under Datawrkz bolstered Nazaras global supply-side capabilities. Additionally, the Sports Media business saw continued traction with Pro Football Network (PFN) turning profitable and achieving 57%

y-o-y revenue growth, validating the Companys ability to scale and optimise acquired assets. These investments underscore Nazaras platform-led strategy focussing on owning strategic IPs, enhancing operating leverage, and building category-defining businesses across gaming and sports media.

	Investments made by Nazara Group as of March 31, 2025
Name of the Party		Amount (in million)
	Cash Consideration	Share Swap and ESOP	Total	Nazaras Holding (%)
Nextwave Multimedia Private Limited	473	228	701	74.88
NODWIN Gaming Private Limited	1.746	414	2,160	51.83
Halaplay Technologies Private Limited	432	146	578	64.7
Beninja Solutions Private Limited	42	-	42	4.68
Moonshine Technology Private Limited	7.583	1,959	9,542	46.07
Funky Monkeys Play Centre Private Limited	436	-	436	60
Absolute Sports Private Limited	2.451	343	2,794	100
Paper Boat Apps Private Limited	3.935	-	3,935	100
Reelsaga Innovations Private Limited	22	-	22	3.57
Fusebox Games Limited (Nazara UK Investment)	2,411	-	2,411	100
Moong Labs Technologies Private Limited	10	-	10	29.38
Rusk Media Private Limited (Nazara Standalone)	20	-	20	3.02
Openplay Technologies Private Limited	1,864	-	1,864	94.91
Kofluence Tech Private Limited		312	312	10.38
Nodwin Gaming MENA FZ-LLC (formerly known as Publishme Global FZ LLC) (Nodwin Singapore investment)	166		166	51.83
Hashcube	31	-	31	12.38

 

	Investments made by Nazara Group as of March 31, 2025
Name of the Party		Amount (in million)
	Cash Consideration	Share Swap and ESOP	Total	Nazaras Holding (%)
NiNJA ESPOR PRODUKSIYON ANONIM ?RIKETI (Merged with Arrakis Tanitim Organizasyon Pazarlama SAN. TIC. Ltd. A.S., Subsidiary of Publish Me Global FZ LLC)		188	188	51.83
AFK Gaming Private Limited (NODWIN Investment)	6	-	6	3.99
Rusk Media Private Limited (NODWIN investment)	100	-	100	4.14
OML Division of NODWIN	730	-	730	NA
Wildworks Inc.	8,275	-	8,275	100
Datawrkz Business Solution Private Limited	710	250	960	55
Litifer Technologies Private Limited	11	-	11	0.10
Superhero Brands Private Limited (NODWIN Investment)	49	-	49	51.83
Brandscale Innovations Private Limited (NODWIN Investment)	180	-	180	18.24
Comic Con India Private Limited (NODWIN Investment)	274	276	550	51.83
Branded Pte Limited (NODWIN Singapore Investment)	107	-	107	26.43
Pro Football Network Inc (Absolute Investment)	149	-	149	73.27
Freaks 4U Gaming GmbH (NODWIN Singapore Investment)	1,160	2,115	3,275	51.83
Snax Games Limited	42		42	NA
Trinity Gaming India Private Limited (NODWIN Investment)	48	192	240	51.83
Star Ladder Limited (NODWIN Investment)	173	303	476	51.83

 

	Investments made by Nazara Group as of March 31, 2025
Name of the Party	Amount (in million)
	Cash Consideration	Share Swap and ESOP	Total	Nazaras Holding (%)
Space & Time Group Limited (Datawrkz Investment)	372	162	534	37.81
EG Media Limited	12	-	12	17.02

OUTLOOK

The global gaming industry is entering a transformative phase of sustained growth. This is driven by the deepening penetration of smartphones and the internet, rapid technological innovation, and increasing global demand for immersive digital entertainment. In India, this momentum is amplified by a tech-savvy young population, expanding digital infrastructure, and increasing access to gaming platforms.

Nazara is well-positioned to harness this momentum. In FY 2024-25, the Company demonstrated a strong operating performance, achieving its highest-ever consolidated revenue and EBITDA. The performance owed itself to disciplined execution and diversified growth levers. The strategic acquisition of Curve Games and marquee IPs like C.A.T.S. and King of Thieves, along with the integration of high-performing assets such as Kiddopia and Sportskeeda, reflects a focussed growth strategy. Nazaras entry into offline experiential gaming with Funky Monkeys and Smaaash further highlights a deliberate focus toward creating a 360-degree gaming ecosystem.

With a sharper focus on its core gaming IPs, Nazara aims to deepen monetisation and streamline portfolio structures. It also aims to scale up proprietary IPs across geographies, and drive synergies through shared centres of excellence in AI, analytics, growth, technology, user acquisition, finance and HR. The Company is also actively building a bridge for Indian developers to global PC/console markets via its Curve Games platform. Thereby unlocking export potential. As Nazara steps into FY 2025-26, it is fully prepared to accelerate organic and inorganic growth. This growth will be reinforced by a strong balance sheet and proven integration capabilities. Holistically, growth will be augmented by the overarching strategic vision centred on building one of the worlds most valuable gaming platforms from India.

FINANCIAL AND OPERATIONAL RISK MANAGEMENT FINANCIAL RISKS

Nazara maintains a structured risk management framework led by senior leadership and governed by the Board of Directors. This includes systematic identification, quantification, and mitigation of key financial risks such as market risk, credit risk, and liquidity risk. Each risk area is managed through policies that are periodically reviewed and updated to reflect evolving business conditions.

MARKET RISK

The Company is exposed to market risk through its investments in financial instruments such as mutual funds, deposits, and equity holdings. These are sensitive to fluctuations in interest rates, foreign exchange rates, and market prices. To mitigate this, Nazara follows a conservative investment approach: deploying funds in high-quality, liquid assets and diversifying exposure across instruments.

EQUITY AND INVESTMENT PRICE RISK

Nazara has deployed capital into multiple gaming IPs, subsidiaries, and associate companies, including growth-stage ventures. While these investments aim to drive strategic synergies and long-term value creation, they carry an inherent risk of volatility and valuation uncertainty. To address this, the Company adheres to rigorous due diligence, leverages independent external valuation expertise, and obtains Board approval for all major investments. Regular reviews are conducted to assess performance versus projections and calibrate investment strategy accordingly.

FOREIGN CURRENCY RISK

A significant portion of Nazaras revenues and investments is denominated in foreign currencies, particularly from markets such as North America, Europe, and the UK. Consequently, fluctuations in currency exchange rates could affect financial performance. The Company monitors foreign currency exposures but does not currently engage in speculative hedging. Where necessary, natural hedges are used to mitigate short-term volatility.

CREDIT RISK

Credit risk refers to the potential loss arising from a customer or counterpartys inability to meet its contractual financial obligations. For Nazara, this primarily arises from trade receivables associated with operational and licensing activities. The Company has established internal

protocols to assess creditworthiness, leveraging a risk classification system to categorise financial assets as low, medium, or high risk based on historical data and business insights. Credit approvals, defined exposure limits, and routine monitoring are key tools employed by individual business units to ensure disciplined credit management.

LIQUIDITY RISK

Liquidity risk refers to the challenge of meeting financial obligations on time, particularly during periods of market volatility. Nazara actively manages this risk through comprehensive cash flow forecasting. It maintains adequate liquidity buffers, including cash balances and investments in short-term instruments such as mutual funds. The senior leadership regularly reviews funding requirements to ensure the timely availability of resources for operational and strategic needs.

OPERATIONAL RISK

The dynamic nature of the gaming ecosystem requires vigilant management of operational risks across Nazaras diversified portfolio. Key areas of operational exposure include:

• Mobile Gaming: Shifts in policies by digital distribution platforms such as Google Play and Apples App Store can affect customer acquisition strategies and cost structures. Nazara addresses this through close coordination with platform partners, diversification of distribution channels and continuous optimisation by its in-house teams.

• IAP Monetization in Freemium Mobile Games: Revenue generation in this segment relies on user conversion from free to paying gamers. It also needs access to high-quality game design talent capable of crafting engaging monetisation features. To fully optimise abilities, we continue to invest in talent and product innovation to support this model.

• Real Money Gaming (RMG): The RMG segment is sensitive to regulatory developments, including court rulings and tax changes driven by public perception. Nazara actively monitors the legal landscape and participates in industry-level dialogues to contribute to responsible policy development

• Indian Esports Ecosystem: The scalability of esports revenue in India depends on deeper market monetisation and increased participation from global publishers. Nazara is actively engaging with ecosystem participants to bolster awareness and promote sustainable market development

• Sports Media Segment: This vertical is exposed to evolving privacy regulations and data compliance requirements enforced by app stores, government authorities, and digital ad

networks like Meta and Google. To combat this, the Company stays ahead of the curve through legal reviews, compliance audits, and policy advocacy where needed.

• Cybersecurity Risk: With increased digitisation, gaming platforms face growing threats from data breaches, malware attacks, and unauthorised access. Nazara recognises that this may disrupt services or impact user trust. Consequently, the Company has implemented a multi-layered cybersecurity framework, including firewalls, endpoint protection, and realtime threat detection to ensure information security and maintain uninterrupted business continuity.

• Intellectual Property (IP) Risk: Intellectual property is core to value creation in the gaming sector. Risks include potential infringement of proprietary game assets, names, or third-party content, which can lead to litigation or financial loss. The Company proactively registers its IPs with relevant authorities and maintains legal safeguards to enforce and protect its intangible assets across geographies.

INTERNAL CONTROL SYSTEMS

The Company has implemented internal financial controls commensurate to the scale and complexity of its operations. These controls, guided by defined policies and procedures, ensure operational discipline, asset security, and timely detection of anomalies. The Audit Committee conducts regular reviews to assess their effectiveness. During the year, M/s. MAKK & Co., Chartered Accountants, conducted an internal audit, followed by reviews to ensure implementation of key findings. The Board of Directors ensures adequate controls are in place for accurate and compliant financial reporting.

HUMAN RESOURCES

Nazara recognises that its people are its most critical asset in sustaining long-term innovation and competitive advantage. The Company has instituted a comprehensive ‘Peoples Policy that sets forth key guidelines governing employee engagement. This policy encompasses key strategic levers such as equal opportunity employment, professional conduct, dedicated working hours, probation and transfer processes, promotion criteria, leave policies, business travel procedures, and whistleblower protocols.

In alignment with workforce best practices, Nazara continues to foster a safe and inclusive work environment. The Internal Complaints Committee, constituted under the Companys Policy on Sexual Harassment Prevention (POSH) (in effect since August 23, 2014), is active and responsive. The Board composition adheres to the principles set out in the Policy on Board

Diversity (updated in March 2024), and the Nomination and Remuneration Policy (revised in February 2025) governs the compensation and evaluation of Executive and Non-Executive Directors, Key Management Personnel, and the Senior Leadership.

As a technology-first enterprise operating in a talent-intensive domain, the Company continues to invest its energies in attracting, retaining, and nurturing high-performing individuals. Personnel are especially attached to roles linked to game development, publishing, and platform strategy. Nazara anticipates rising global demand for specialised gaming talent, and is proactively building internal talent pipelines through upskilling, structured learning, and leadership development initiatives.

The Company remains committed to cultivating a culture of innovation, entrepreneurship, meritocracy, and diversity. For FY 2024-25, Nazara aims to maintain an employee attrition rate below 15% and director-level attrition at 0%. Strategic hiring, career mobility, and employee

engagement will remain key focus areas to ensure sustainable team growth and capability enhancement across group entities.

CAUTIONARY STATEMENT

Statements made in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or forecasts may constitute ‘forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors such as changes in economic conditions, evolving market dynamics, shifts in consumer behaviour, changes in technology, regulatory developments, tax law amendments, climatic events, or other variables beyond the Companys control. Nazara undertakes no obligation to publicly update or revise any forwardlooking statements, whether as a result of new information, future events, or otherwise.