Nazara Technologies shares muted in 2025; here’s why Choice sees 55% upside in 2026
Last check on Tuesday, shares of Nazara Technologies were trading 0.65 per cent lower at Rs 251.40 on the BSE against the previous close of Rs 253.05 apiece.
- Dec 30, 2025,
- Updated Dec 30, 2025 11:41 AM IST
Shares of gaming and sports media platform Nazara Technologies have remained relatively quiet on the bourses throughout 2025, but brokerage firm Choice Institutional Equities believes the stock is poised for a significant turnaround.
Last check on Tuesday, shares of Nazara Technologies were trading 0.65 per cent lower at Rs 251.40 on the BSE against the previous close of Rs 253.05 apiece. The counter has been muted over the year in 2025, edging 0.48 per cent lower from its January 1, 2025 price.
In its latest research note, the Choice has reiterated a 'Buy' rating on Nazara Technologies, projecting a massive 55 per cent upside from current levels, with a target price of Rs 390.
Despite the flat movement on the charts, Choice Institutional Equities argues that the company is entering a cleaner, more predictable growth phase following a decisive portfolio reset.
The brokerage highlights that the company has undertaken strategic moves—specifically the de-subsidiarisation of Nodwin and taking upfront impairments in its PokerBaazi and Freaks4U investments. According to the brokerage, this reset was a deliberate effort to scrub the balance sheet and improve earnings quality, leaving the one-offs largely behind.
The research note points out that Nazara’s growth engine is now firmly anchored in core gaming, a segment expected to deliver structurally higher EBITDA margins of 20-25 per cent over the medium term. Choice said, "The business mix has materially simplified... supported by deeper LiveOps, stronger IP monetisation and a rising contribution from international markets."
For the second quarter of FY26, Nazara delivered what the brokerage termed broad-based growth. Revenue surged 65 per cent year-on-year to Rs 530 core, while EBITDA skyrocketed 146 per cent to Rs 62 crore. The brokerage attributed this operational efficiency to the ‘Enter Magic’ brand refresh and a push toward AI-enabled, immersive experiences.
Looking ahead, the brokerage is optimistic about Nazara's strategy to scale through larger, IP-led global acquisitions. With over 90 per cent of its gaming revenues now generated overseas, the company is doubling down on markets like the US and UK. "Management is refocusing capital allocation toward high-quality global gaming IPs, supported by improving user acquisition efficiency, operating leverage and AI-led productivity," it added.
Shares of gaming and sports media platform Nazara Technologies have remained relatively quiet on the bourses throughout 2025, but brokerage firm Choice Institutional Equities believes the stock is poised for a significant turnaround.
Last check on Tuesday, shares of Nazara Technologies were trading 0.65 per cent lower at Rs 251.40 on the BSE against the previous close of Rs 253.05 apiece. The counter has been muted over the year in 2025, edging 0.48 per cent lower from its January 1, 2025 price.
In its latest research note, the Choice has reiterated a 'Buy' rating on Nazara Technologies, projecting a massive 55 per cent upside from current levels, with a target price of Rs 390.
Despite the flat movement on the charts, Choice Institutional Equities argues that the company is entering a cleaner, more predictable growth phase following a decisive portfolio reset.
The brokerage highlights that the company has undertaken strategic moves—specifically the de-subsidiarisation of Nodwin and taking upfront impairments in its PokerBaazi and Freaks4U investments. According to the brokerage, this reset was a deliberate effort to scrub the balance sheet and improve earnings quality, leaving the one-offs largely behind.
The research note points out that Nazara’s growth engine is now firmly anchored in core gaming, a segment expected to deliver structurally higher EBITDA margins of 20-25 per cent over the medium term. Choice said, "The business mix has materially simplified... supported by deeper LiveOps, stronger IP monetisation and a rising contribution from international markets."
For the second quarter of FY26, Nazara delivered what the brokerage termed broad-based growth. Revenue surged 65 per cent year-on-year to Rs 530 core, while EBITDA skyrocketed 146 per cent to Rs 62 crore. The brokerage attributed this operational efficiency to the ‘Enter Magic’ brand refresh and a push toward AI-enabled, immersive experiences.
Looking ahead, the brokerage is optimistic about Nazara's strategy to scale through larger, IP-led global acquisitions. With over 90 per cent of its gaming revenues now generated overseas, the company is doubling down on markets like the US and UK. "Management is refocusing capital allocation toward high-quality global gaming IPs, supported by improving user acquisition efficiency, operating leverage and AI-led productivity," it added.