Analyst Initiates Buy Rating on Nazara Technologies with ₹1,400 Target

Nazara Technologies emerges as a key beneficiary of India's under-monetized gaming market, where In-App Purchase conversion languishes below 3% and ARPU trails China at $8-9 versus $17-18. Structural catalysts—including digital payment adoption, 5G rollout, and Gen Z engagement—position the company for accelerated monetization.

The gaming firm's global expansion through strategic acquisitions like Fusebox and ZeptoLab IPs taps into high-ARPU markets while capitalizing on India's cost-efficient development ecosystem. With IAP revenue projected to surge from 19% to 35% by FY28 and freemium segments growing at double-digit rates, Nazara demonstrates scalable potential across casual, narrative, and premium gaming verticals.

Revenue and EBITDA are forecast to compound annually at 30.7% and 44.5% respectively through FY28, though regulatory risks in real-money gaming and IP performance uncertainties remain key watchpoints.