Nazara Technologies plunges 12%, stock hits three-month low; here's why

Nazara Technologies stock crashed 12 per cent after the company suspended its real-money gaming (RMG) offerings, to comply with the new online gaming law in India.

Nazara Technologies share price today

 

Shares of Nazara Technologies hit a three-month low of ₹1,014.75, plunging 12 per cent on the BSE in Monday’s intra-day trade after the company announced suspension of their real-money gaming (RMG) offerings on Friday, to comply with the new online gaming law.

 

The stock was quoting at its lowest level since May 7, 2025. In the past one week, the stock price of Nazara has tanked 27 per cent after India finalised a draft legislation to ban all forms of online RMG. 

 

The market value of Nazara has slipped 30 per cent from its 52-week high of ₹1,450 touched on August 13, 2025. It had hit a 52-week low of ₹835.30 on October 25, 2024.

 

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At 11:39 AM; the stock was trading 7 per cent lower at ₹1,074.65, as compared to 0.33 per cent rise in the BSE Sensex.

 

Why did Nazara Technologies shares fall today?

 

Nazara, the only publicly listed platform in India, said its associate company Moonshine Technologies had ceased RMG operations. “The company will evaluate the future course of action following the enactment of the Bill,” it said in a statement on August 22.

 

“In pursuant to the Promotion and Regulation of Online Gaming Bill, 2025, passed by the Parliament on August 21, 2025 and pending enactment, we wish to inform that, as a matter of abundant caution and in due respect of the Government’s mandate, Moonshine Technologies Private Limited (Moonshine/Pokerbaazi), an associate company in which Nazara Technologies holds a 46.07 per cent stake, has ceased offering real money online gaming operations,” the company said.

 

Nazara had invested ₹805 crore towards equity shares in PokerBaazi parent Moonshine Technology through a combination of cash and stock in 2024. It holds compulsory convertible shares amounting to ₹255 crore.

 

Earlier, on August 20, 2025, Nazara had said the company has no direct exposure to RMG businesses. As per its latest reported financials (Q1FY26), the contribution to revenues and EBITDA by RMG business is NIL.

 

The company’s only indirect exposure to RMG is in PokerBaaz. 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 share of profit & loss by associate is negative in Q1FY26.

 

Nazara’s key businesses include Curve Games, Kiddopia, Animal Jam, Fusebox Games (Love Island, Big Brother), World Cricket Championship and Sportskeeda, along with offline gaming businesses such as Funky Monkeys and Smaash Entertainment. Nazara also operates Datawrkz, a digital ad tech business. With presence in India, North America, and other global markets, Nazara is building a global gaming platform with strong IP, publishing, and operating capabilities.

 

PokerBaazi Q1FY26 financial performance

 

Moonshine Technology's net revenue for Q1FY26 grew 54 per cent year-on-year (YoY) to ₹191.8 crore, marking the best-ever quarter for the company. PokerBaazi Gross Gaming Revenue (GGR) grew 46 per cent YoY in Q1FY26 to ₹434 crore, driven by strong user engagement and product enhancements.

 

Q1 saw an EBITDA loss due to front-loaded marketing costs on account of IPL. The IPL campaign delivered a sustained lift in user liquidity, resulting in all-time high daily active users (DAUs) and monthly average users (MAUs), Nazara said in Q1FY26 investor presentation.

 

The PokerBaazi Upgrade 2025, launched in May, introduced multiple new features - AI coaching, a modular tournament engine, Poker TV and UI enhancements - significantly boosting user engagement, the company said.