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Following 28% revenue growth in FY25, Gameberry Labs, the company behind popular mobile board games Ludo Star and Parchisi Star, continued its growth momentum in FY26, with operating revenue growing 20% to cross Rs 700 crore. Its net profit also grew over 17% during the fiscal year. Gameberry Labs’ operating revenue grew 20.3% year-on-year to Rs 711 crore in FY26 from Rs 591 crore in FY25, as per its consolidated financial statements sourced from the Registrar of Companies (RoC). Founded in 2017, Gameberry Labs operates mobile board games including Ludo Star, Ludo Titan, Parchisi Star and Backgammon Friends. The company has focused on free-to-play games monetised through in-app purchases and advertising. The company primarily earns from in-app purchases, which contributed Rs 603 crore, or nearly 85% of its operating revenue, during the fiscal year. The segment grew 20.8% from Rs 499 crore in FY25. Advertising revenue rose 17.4% to Rs 108 crore from Rs 92 crore in the previous fiscal year. Notably, over 99% of the company’s revenue came from overseas markets, which contributed Rs 706 crore, while India accounted for only a fraction of its total revenue. Including Rs 39 crore in other income from interest on bank deposits and net gains on the fair value of investments, Gameberry Labs’ total income rose to Rs 750 crore in FY26 from Rs 622.3 crore in FY25. On the expense front, the company’s total expenditure rose 23.2% to Rs 578 crore in FY26 from Rs 469 crore in the previous fiscal year. Employee benefit expenses remained Gameberry Labs’ largest expense head, which grew over 31% year-on-year to Rs 177.66 crore in FY26 from Rs 135.5 crore in FY25. This cost included Rs 7.86 crore of ESOP expenses. Platform hosting and payment facilitation charges rose 62.6% to Rs 175 crore, which accounted for over 30% of the overall costs, while advertising expenses increased 20.4% to Rs 116.4 crore during the year. Gameberry paid Rs 73.7 crore in FY26 under a settlement agreement with Moonfrog Labs Private Limited (MLPL) over a case previously pending before the City Civil Court in Bengaluru. The agreement included a one-time payment of Rs 32.8 crore in FY20, along with a commitment to pay a fixed percentage of its monthly net revenue until 2030. Other expenses, including legal and professional fees, technical costs, royalty and miscellaneous costs, amounted to Rs 35 crore. This pushed the company's total expenditure to Rs 578 crore in FY26, a 23% year-on-year increase. Despite the increase in costs, Gameberry Labs’ profit after tax rose to Rs 129 crore in FY26 from Rs 110 crore in FY25, a growth of around 17%. Its EBITDA increased 8.8% to Rs 140.48 crore from Rs 129.16 crore in the previous fiscal year. However, its EBITDA margin and ROCE contracted to 19.8% and 21.1% respectively in FY26. On a unit basis, the company spent around Rs 0.81 to earn a rupee of operating revenue, compared with Rs 0.79 in the previous fiscal year. As of March 2026, the company’s current assets stood at Rs 487 crore, down from Rs 564 crore a year earlier. Its cash and bank balances fell sharply to Rs 12 crore from Rs 119 crore in FY25. Overall, one would have to say Gamesberry comes out as a profitable, growing business, albeit with slowing growth, rising platform fees, and a legacy liability that scales with revenue till 2030. The ROCE decline to 21.1% is the number to watch, especially with the sharp drop in cash balances.
document fetched 2026-10-24 11:25