The number of internet and mobile users in India is increasing daily, which is why people are trying different types of games. As people’s interest in playing games is increasing, the gaming sector in India is also growing. The digital market’s growth is expected to exceed 900 million internet users by 2025. In all this, the Indian gaming industry has become one of the largest growing industries in India. The Indian gaming industry is a $1.8 billion gaming industry.
India is now among the top gaming markets and is expected to become a $10 billion industry in the next decade. India’s richest man Mukesh Ambani has said that gaming has the potential to generate more revenue than movies and music. Ludo King earned $20 million in 2020. There are currently around 6 lakh e-sports teams in India. India has 400 million gamers and 500+ gaming studios which can change the direction of the gaming sector in the coming days.
The Government of India plans to set up a National Animation, Visual Effects, Gaming and Comics (AVGC) Centre of Excellence in collaboration with Bombay. Therefore, gaming stocks can be an option for government employees who have certain constraints while investing in stocks.
1. Nazara Technologies Ltd
Nazara Technologists is one of India’s leading gaming and sports media companies with a growing global presence in regions like Africa and North America. The company operates across three main areas: interactive gaming, eSports and gamified early learning. It owns popular mobile gaming titles like the World Cricket Championship (WCC) and Caramclash, which are loved by players worldwide. In the gamified learning space, its app Kiddopia is making waves by combining education and entertainment for children.
On the financial front, Nazara has a market cap of ₹7,779 crore and a stock price of ₹1,014. While the company has shown an impressive profit growth of 44.3% in the last year, its sales growth has been flat at -0.02%. It reported an annual profit after tax of ₹83.1 crore, with a quarterly profit of ₹18.1 crore. Nazara’s balance sheet looks strong, with total assets of ₹2,974 crore and a low debt-to-equity ratio of just 0.06, indicating strong financial stability.
In terms of ownership, the company is primarily owned by the public (66.7%), institutional investors (24.3%) and promoters (9%). Nazara has carved a niche for itself in the gaming industry and is poised for further growth, especially with mobile gaming and e-sports gaining momentum in India and globally. However, challenges such as flat sales growth and high stock valuation (P/E ratio of 93.6) indicate that the company needs to focus on diversifying its revenue streams and capitalizing on emerging opportunities in new markets.
2. Zensar Technologies Ltd
Zensar Technologies Limited is a global leader in digital solutions and IT services, providing tailored offerings to industries such as healthcare, life sciences, high-tech engineering, telecom, banking and financial services, insurance, consumer and manufacturing. Its operations are divided into two core segments: Digital and Application Services (DAS) and Digital Foundation Services (DFS). The DAS segment focuses on application development, modernization, maintenance and testing, which helps businesses increase operational efficiency and innovation. Meanwhile, the DFS segment specializes in infrastructure management through services such as digital workspace, hybrid IT, unified IT, and dynamic security, delivering scalable and secure solutions using advanced technologies such as automation, autonomy and machine learning.
Zensar has a market capitalization of ₹17,084 crore and a current share price of ₹752. In the past year, the company posted sales of ₹5,030 crore and reported a net profit of ₹649 crore, achieving a profit growth rate of 23.4%. Its strong fundamentals are evident from the return on capital employed (ROCE) of 25.2%, return on equity (ROE) of 20.0% and a debt-to-equity ratio of less than 0.04, reflecting a solid and conservative financial strategy. The company’s earnings per share (EPS) stood at ₹28.6, supported by consistent growth and a stable dividend yield of 1.20%.
Zensar’s shareholders are promoters who own 49.1%, public investors 17.0% and institutional investors (FIIs and DIIs) together own 33.8%. With total assets of ₹4,822 crore and minimum debt of ₹147 crore, Zensar is well-equipped to scale its operations while maintaining financial stability.
With expertise in high-growth areas such as automation and machine learning, the company’s strategic focus on digital transformation positions it as a trusted partner for enterprises seeking innovation and resilience in a rapidly evolving digital landscape. With ongoing investment in cutting-edge technology and a client-centric approach, Gensar is poised for sustainable growth in the global IT services market.
3. Delta Corporation
Delta Corporation has established itself as a market leader in the gaming sector, especially in the casino gaming segment. The company has limited its gaming operations in Goa, making it a dominant player in the region. Its flagship properties, Deltin Royale and Deltin JAQK, are synonymous with luxury and entertainment, catering to both domestic and international clientele. With a total gaming capacity of 2,000 positions, the casino gaming segment has witnessed a 50% growth between FY22 and FY24.
However, revenue growth in FY24 was flat, driven by the temporary closure of one of its vessels for the acquisition and maintenance of a casino in Nepal. The gaming segment, which accounts for 15% of revenue, focuses on online politics and video-based games such as poker. Its party brand presence, October 2023- The segment is under pressure for revenue due to higher GST rates, which will result in a 9% YoY decline between FY22 and FY24. This regulatory change has been made, and the company is exploring ways through a strategic approach, taking into account the guidance and user impact. In the hospitality segment, the company has premium properties such as Deltin Suites in Goa, a 106-room casino hotel, and De Deltin in Daman, a 10-acre permanent expansion of a V-Star resort. The segment, revenue grew by 5% YoY, 17% YoY between FY22 and FY24 due to changing travel trends and customer preferences. With the continued strength, the company is focused on delivering an exceptional guest experience and expanding its reach.
Financially, Delta Corp has a balance sheet with a net present value of Rs 45.4 crore and a debt-to-equity ratio of 0.02. While its ROCE (12.4%) and ROE (8.76%) reflect the response, the company’s overall sales (-24.3%) and profit (-57.7%) declined due to the proposal. Its market capitalization is Rs 2.92 crore, which is currently worth Rs 111. Delta Corp’s future growth is driven by its ability to navigate regulatory hurdles in online gaming, revitalize its hospitality segment and capitalize on its casino capabilities. Through exploring new markets and diversifying its portfolio, the company aims to grow its presence in the hospitality sector and establish itself as a leader in the gaming sector.