Shares of Nazara Technologies Ltd. slumped over 10% on Thursday, August 21, extending losses for a second consecutive session. The stock fell as much as 22% in two days, closing at ₹1,094.40 on the NSE, making it one of the top losers on the bourse.
The sell-off follows reports that the government is preparing to introduce the Online Gaming Bill, 2025, which is expected to impose sweeping restrictions on online money games. The draft Bill reportedly proposes banning individuals or entities from offering money-based online games or related services in India. It will also prohibit advertisements, restrict related financial transactions, and may prevent banks and financial institutions from facilitating payments to such platforms.
Brokerage firm Prabhudas Lilladher flagged risks to Nazara’s investment in PokerBaazi (Moonshine Technologies), in which it holds a 48% stake. Nazara has already invested about ₹805 crore and has committed another ₹255 crore in the gaming platform. The brokerage warned that if the ban materializes, the investment could be at risk of being written off, impacting valuations.
PokerBaazi contributes significantly to Moonshine’s revenue and makes up 35% of Prabhudas Lilladher’s valuation target for Nazara. Without PokerBaazi, the brokerage estimates Nazara’s target price would fall from ₹1,345 to ₹917.
In Q1 FY26, Nazara posted revenues of ₹498.8 crore, nearly doubling YoY. However, 38% of revenue was generated by Moonshine (PokerBaazi’s parent), underscoring its indirect exposure to the real-money gaming (RMG) segment.
Nazara, however, clarified in an exchange filing that it has no direct exposure to RMG businesses. The company said its stake in Moonshine is non-controlling, and hence Moonshine’s revenue is not consolidated in Nazara’s financials. It added that Moonshine’s contribution to PAT in Q1 FY26 was negative, and therefore, it does not expect a material impact on its reported operating performance.
Despite these reassurances, investor sentiment remains cautious as regulatory uncertainty clouds the outlook for the online gaming sector. At current levels, Nazara shares are down sharply from their 52-week high of ₹1,453 but still above the year’s low of ₹834.55.
