PokerBaazi write-off pushes Nazara into losses in Q2 FY26

Gaming and sports media firm Nazara Technologies reported a 65% year-on-year rise in operating revenue for Q2 FY26. Moreover, the Mumbai-based company lost profitability due to write off of investment in PokerBaazi which was closed due the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

Nazara’s operating revenue rose by 65% to Rs 526 crore in Q2 FY26 from Rs 319 crore in Q2 FY25, according to its unaudited financial statements sourced from the National Stock Exchange (NSE).

E-sports accounted for 17% (Rs 87 crore) of the company’s total operating revenue, while the gaming segment held 56% share (Rs 296 crore), followed by ad tech, which contributed 27% (Rs 143 crore).

Interestingly, Nazara booked Rs 1,105 crore under non-operating income  bringing its overall revenue to Rs 1,631 crore in Q2 FY26 from Rs 344 crore in Q2 FY25. On a half-yearly basis, the company’s revenue increased by 80% to Rs 1,025 in H1 FY26 from Rs 569 crore in H1 FY25.

On the line of scale, Nazara’s total expenses surged by 66% to Rs 534 crore in Q2 FY26, compared to Rs 321 crore in the same quarter last year. Content cost stood at Rs 160 crore, while employee benefit expenses rose to Rs 78 crore. Notably, marketing expenses saw a sharp of nearly 3X jump, reaching Rs 116 crore in Q2 FY26.

With the enactment of the Promotion and Regulation of Online Gaming Act, Nazara recognized an aggregate reduction of Rs 914.70 crore in its investment done on Moonshine Technologies. Due to which the company recorded a loss of Rs 34 crore in Q2 FY26 as compared to a profit of Rs 18 crore in Q2 FY25. On a half-yearly basis the company’s profit declined 57.5% to Rs 17 crore in H1 FY26 from Rs 40 crore in H1 FY25.

In August this year, Nazara called off its plan to acquire a minority stake in Moonshine Technology Private Limited, the parent company of online poker platform PokerBaazi, due to the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

At the end of the day, Nazra’s share was trading at Rs 257 with a total market capitalization of Rs 9,539 crore (approximately $1 billion).