Nazara Tech rebounds after four-day rout
Amid the slide, a domestic brokerage downgraded Nazara to ?Reduce? from ?Add? and cut its target price to Rs 1,110 from Rs 1,500, flagging the regulatory overhang. The Bill prohibits all real-money games based on skill, chance or both, bars their promotion and advertising, and restricts banks from processing related transactions. Violations could invite up to three years? imprisonment and fines of Rs 1 crore, with stricter penalties for repeat offenders.
Nazara issued a clarification on 20 August 2025, stressing it has no direct exposure to the RMG space. The company said RMG contributed nil to revenue and EBITDA in Q1 FY26. Its only indirect link is a 46.07% stake in Moonshine Technologies, the operator of PokerBaazi, which is not consolidated in Nazara?s accounts. Nazara also highlighted that Moonshine?s contribution to Q1 profit after tax was negative and that the Bill is unlikely to have a material financial impact.
Nazara has so far invested Rs 805 crore in Moonshine via cash and stock, along with Rs 255 crore in compulsory convertible shares, but reiterated that the exposure does not affect its reported results.
Nazara is India?s only publicly listed gaming company with businesses spanning Kiddopia, Animal Jam, World Cricket Championship, Sportskeeda, Curve Games, Fusebox Games, Funky Monkeys, Smaash Entertainment and ad-tech unit Datawrkz. With operations across India, North America and other markets, it is building a global gaming platform with strong IP and publishing capabilities.
On a consolidated basis, Nazara Technologies posted a sharp growth in Q1FY26 with revenues of Rs 498.8 crore (+99% YoY) and EBITDA of Rs 47.4 crore (+90% YoY). The core gaming business achieved a 24.4% EBITDA margin, reflecting strong execution of its IP-led gaming strategy. PAT in Q1FY26 was Rs 51.3 crore, marking a 118% YoY increase and underlining the company?s continued ability to generate sustainable profits even as it invests for growth.
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