Nazara shares in freefall, down 23% in 2 days as PokerBaazi game haunts investors

Nazara Technologies shares fell another 11% to Rs 1,085 on BSE on Thursday morning to record the total two-day loss of about 23% after the Lok Sabha cleared the Online Gaming Bill, which proposes to ban all online games involving money.

While most of the companies operating in the space are unlisted, Nazara Technologies has meaningful exposure in the space via Moonshine Technology (PokerBaazi).

The Promotion and Regulation of Online Gaming Bill, 2025, criminalises digital betting and bans monetary transactions for real money gaming. Banks and fintechs are also barred from processing such payments.


Following the news, domestic brokerage firm ICICI Securities has downgraded Nazara to reduce with a revised target price of Rs 1,100 from Rs 1,500 earlier.

"We had earlier assigned a Rs 400 valuation to Moonshine in our SoTP. Given the ban on RMG, we now cut this to zero. Nazara’s other verticals, such as gamified early learning, publishing, and gaming arcades, remain unaffected," ICICI's Abhisek Banerjee said.

Also Read | Cabinet approves blanket ban on online money games; proposes 3 years jail, fine upto Rs 1 crore

Harshal Dasani, Business Head of INVasset, said the overhang on the stock stems more from perception than fundamentals.

"Q1 FY26 results reflected steady growth across core verticals, underpinned by improved margins in e-sports and higher user engagement in gamified content. Yet, in the short term, uncertainty around the bill’s implementation and its effect on associate investments could keep volatility high. For long-term investors, Nazara’s diversified, non-RMG revenue base and strong balance sheet offer comfort," he said.

Suggesting traders to prefer caution until regulatory clarity emerges, he said sustained delivery on earnings and reduced noise around Moonshine will be key triggers for sentiment recovery.

Nazara Technologies is a leading India-based company in the gaming and sports media platform. They have a strong presence in India, Africa, North America, and other global markets. Their offerings include interactive gaming, eSports, and gamified early learning ecosystems with popular games like World Cricket Championship and Kiddopia.

The company operates a diverse portfolio of gaming and digital content brands, including Classic Rummy, Halaplay, Kiddopia, Sportskeeda, and World Cricket Championship (WCC).

The Mumbai-based company informed exchanges that real-money gaming contributed nothing to its revenues in the first quarter of FY26.

"Nazara has no direct exposure to real money gaming (RMG) businesses. As per its latest reported financials (Q1-26), the contribution to Revenues and EBITDA by the RMG business is NIL," it said, adding that as Nazara does not hold a majority stake or exercise control, Moonshine’s revenue is not consolidated in the Company’s financial statements and has no impact on the Company’s reported Revenue or EBITDA.

The company said it has invested Rs 805 crores towards equity shares in Moonshine through a combination of cash and stock and, in addition, holds compulsory convertible shares amounting to Rs 255 crore.

“Accordingly, the company does not anticipate any material adverse impact on its operating financial performance (Revenue or EBITDA) in relation to such media reports,” it said.