Nazara Shares Plunge 7% After Online Gaming Bill Gets Cabinet Nod

Shares of gaming major Nazara nosedived more than 7% to touch INR 1,300 during the intraday trading session on the BSE today. 

The drop in the stock’s price came after the Union Cabinet approved the Online Gaming Bill on August 19. The Bill, which aims to regulate betting apps and impose strict checks on gambling, will be tabled in the Lok Sabha today. 

At the time of writing, Nazara’s market capitalisation stood at INR 12,041 Cr with more than 60 Lakh shares traded hands by 12:34 PM. The stock was 7.23% lower on the BSE at last check. 

While the Bill would be a big blow for gaming companies, Nazara said that the proposed Promotion and Regulation of Online Gaming Bill, 2025, will not have any material impact on its operating financial performance. The company also said that it has no direct exposure to real money gaming (RMG).

The startup clarified that it has no direct exposure to real money gaming as the vertical has zero contribution to both revenue and EBITDA in the April-June 2025 quarter (Q1FY26). 

“The company’s only indirect exposure to RMG is through its 46.07% stake in Moonshine Technologies Private Limited (PokerBaazi). 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 contribution to PAT by Moonshine as a share of profit & loss by associate is negative in Q1-26,” the statement said. 

The statement further added that Nazara has invested INR 805 Cr towards equity shares in Moonshine through a combination of cash and stock and, in addition, holds compulsory convertible shares amounting to INR 255 Cr. 

How Nazara And Its Peers Are Responding To Gaming Bill Approval

The Online Gaming Bill, cleared by the Union Cabinet yesterday, seeks to bring online gaming platforms under a legal framework and introduce penalties for gambling through digital apps.

This could spell trouble for India’s real money gaming startups, as the Bill proposes a blanket ban on money-based online games. Sources told Inc42 that the draft norms plan to prohibit all real money games, irrespective of whether they are games of chance or skill or both. The only exception granted has been for esports competitions. 

The development triggered a sell-off in the gaming counters, with Nazara ending in the red during today’s trading session, OnMobile Global dipping 5% to INR 52.65 and Delta Corp losing over 6% to INR 87.24 during the intraday session on the BSE.

Delta Corp, primarily known for its casino operations, is also involved in online gaming and hospitality. OnMobile offers a range of products and services, including cloud gaming, gamification platforms and mobile entertainment. 

Meanwhile, Nazara operates in three main segments- interactive gaming, eSports and ad tech. The company in the first quarter (Q1) of financial year 2025-26 (FY26) posted a net profit of INR 51.3 Cr, up 117.6% year-on-year (YoY). Sequentially, the metric is up a whopping 1,183% from INR 4 Cr. 

Nazara’s topline expanded to INR 498 Cr during the quarter under review from INR 250 Cr in Q1 FY25. However, revenues declined a mere 4.1% from INR 520 Cr in Q4 FY25. 

The boost in Nazara’s financial performance came on the back of its aggressive global expansion and IP portfolio building. The company attributed the strong performance to titles like Fusebox, Animal Jam, and Curve Games, all acquired in the last three years.

In India, revenue in the games market is projected to reach $10.06 Bn in 2025, as per Statista. Revenue is expected to demonstrate an annual growth rate (CAGR 2025-2030) of 9.65%, which will result in a projected market volume of $15.95 Bn by 2030.