Nazara Shares Slump 11.6%, Extend Decline For Fourth Day

SUMMARY

Overall, shares of Nazara have lost nearly 26.45% in the last five sessions after the blanket ban on real-money games

Extending its decline for the fourth straight session, shares of Nazara Technologies slumped as much as 11.6% to INR 1,021 during the early trading session today

While Nazara has clarified that it has no direct exposure to real-money gaming (RMG) in its core revenues, investor concerns stem from its associate company Moonshine Technologies, operator of PokerBaazi

Extending its decline for the fourth straight session, shares of Nazara Technologies slumped as much as 11.6% to INR 1,021 during the intraday trading session on the BSE today.

This dragged the company’s market capitalisation lower to INR 9,502.43 Cr with around 41 Lakh shares changing hands at the above price value. The upper and the lower price bands for the stock are at INR 1,386.90 and INR 924.60, respectively.

The sharp fall comes in the wake of the Promotion and Regulation of Online Gaming Bill, 2025, which imposes a blanket ban on real-money games. Overall, it has lost nearly 26.45% in the last five sessions (at the current market price).

This has raised fears of a potential write-down of Nazara’s INR 805 Cr investment and compulsory convertible shares worth INR 255 Cr in Moonshine.

Addressing these concerns, the company said, “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 uncertainty has weighed heavily on investor sentiment across the online gaming sector.

However, it is important to note that Nazara’s core strengths remain in eSports, gamified learning, publishing, and adtech, segments that are unaffected by the new regulations.

Just before the government’s crackdown on real money gaming, investment industry veteran Rekha Jhunjhunwala offloaded 7.06% stake in Nazara Technologies, escaping losses worth INR 334 Cr due to the correction in stock value.

Despite the current turbulence, Nazara stock has delivered strong long-term returns, gaining over 19.89% in the last six months and nearly 9.68% on a year-to-date basis.

Shares of Nazara ended the day’s trading 4.2% lower at INR 1,108 apiece.