Shares of Nazara Technologies Ltd continued their sharp decline for a second straight day on August 21, 2025, slipping 11.19% to touch a low of ₹1,085 on the Bombay Stock Exchange (BSE). This dramatic drop follows a nearly 13% fall the previous day, bringing the two-day loss to about 23% and marking Nazara’s worst performance since May 2024.
The sell-off was triggered by the passage of the Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha, which threatens to ban all pay-to-play online games, including those of skill and chance, across India. Analysts warn this could make the real-money gaming (RMG) sector “infeasible,” with severe repercussions for gaming-linked companies, including Nazara Technologies.
Nazara, India’s only listed gaming and sports media company, moved quickly to clarify its position. The company stated it has no direct exposure to RMG, with contributions from this sector to its revenue and EBITDA reported as nil. However, Nazara does hold a 46.07% stake in Moonshine Technologies, parent to PokerBaazi, a leading RMG platform. Revenues from Moonshine are not consolidated in Nazara’s financials, as the company lacks majority control. Still, analysts and investors remain concerned about potential risks to Nazara’s indirect interests in the RMG segment.
ICICI Securities downgraded Nazara’s rating to “reduce” from “add,” slashing its price target from ₹1,500 to ₹1,100. Brokerage houses have also reduced Moonshine Technologies’ valuation to zero in light of regulatory threats. The recent crash has erased over half of Nazara’s year-to-date gains, a stark reversal from previous bullish sentiment.
Other gaming stocks such as Delta Corp and OnMobile Global suffered declines following news of the proposed ban. Delta Corp closed with minor gains, but the overall sentiment remains negative in the gaming sector.
Despite the turmoil, Nazara’s board recently approved changes to its share capital structure, including a stock split and a 1:1 bonus issue, which will be implemented pending shareholder approval. Technically, the stock now finds support near ₹989–₹1,080, with resistance in the ₹1,184–₹1,200 range. Analysts urge caution and recommend new entries only above ₹1,184, citing weak sentiment and oversold conditions.
Nazara maintains its core business is robust, focused on publishing, early learning, gaming arcades, and eSports—segments unaffected by the online gaming bill. However, until regulatory clarity emerges, the stock is likely to remain volatile and under pressure.
In summary, Nazara Technologies faces challenging times as regulatory headwinds upend investor sentiment and threaten future growth in India’s online gaming industry.