Nazara Shares Extend Losing Streak To Second Day, Tank 11%

SUMMARY

The stock was down about 7.76% at INR 1126.85 per share as of 11:43 AM

The stock recovered some of its losses and ended 1.31% lower at INR 1205.60 apiece on the BSE

Brokerage ICICI Securities downgraded the stock to ‘REDUCE’ from ‘ADD’, and slashed its PT to INR 1,100

Shares of Nazara Technologies slumped 11.18% to INR 1,085 apiece during the intraday trading session on the BSE today, marking its worst day in 15 weeks.

The stock was last down about 7.76% at INR 1126.85 per share as of 11:43 AM.

Market capitalisation of the company currently stands at INR 10,436.46 Cr ($1.20 Bn).

The stock closed its second straight session in red, even as it recovered some of its losses and ended 1.31% lower at INR 1205.60 apiece on the BSE. It lost almost 14% in the past two days.

Since the start of August, Nazara’s shares have ended five sessions in red.

Nazara Stocks In Freefall Over Online Gaming Bill

Nazara’s slump in stock prices comes after the Lok Sabha and Rajya Sabha cleared the Promotion and Regulation of Online Gaming Bill, 2025.

The Bill proposes a total ban on real money games, a move that will severely impact startups in the sector once enforced. Citing concerns over terror funding, money laundering, and yearly losses worth INR 20,000 Cr, the government has introduced the Bill.

The passage of the Bill rattled the online gaming sector, triggering a nearly 19% slide in the gaming major’s stock to INR 1,401.35 on the BSE yesterday, before the shares clawed back some ground to close at INR 1,221.65.

Meanwhile, in a statement, Nazara assured its strong market position and clarified that it has no direct exposure to real money gaming (RMG).

“Nazara has no direct exposure to real money gaming (RMG) businesses. As per its latest reported financials, the contribution to revenues and EBITDA by RMG business is NIL. The company’s only indirect exposure to RMG is through its 46.07% stake in Moonshine,” the company added.

Despite its clarification, brokerage ICICI Securities downgraded the stock to ‘REDUCE’ from ‘ADD’, and slashed its price target (PT) to INR 1,100 from its previous target of INR 1,500, stating the obvious risks of the bill and its “meaningful exposure” in the real money gaming space via Moonshine Technology (PokerBaazi).

In terms of its financial performance, the gaming giant’s net profit more than doubled to INR 51.3 Cr in the first quarter of the financial year 2025-26, from INR 23.6 Cr in the same quarter last year.

Additionally, Nazara’s operating revenue also doubled to INR 498 Cr during the quarter under review from INR 250 Cr in Q1 FY25.

Meanwhile, as of today’s close, the stock has gained 24.64% in value in the past 52 weeks.