Nazara Technologies shares decline nearly 1% after SBI Mutual Fund divests sake

Shares of Nazara Technologies, the Mumbai-based gaming company, declined nearly 1% to hit an intraday low of ₹251 on the National Stock Exchange on Tuesday, December 30. On the BSE, Nazara Technologies shares fell as much as 0.81% after SBI Mutual Fund divested stake in the company.

SBI Mutual Fund on Monday divested a 2.43% stake in Nazara Technologies for ₹216 crore through open market transactions.

According to the bulk deal data available on the stock exchanges, SBI Mutual Fund (MF) offloaded 45.09 lakh shares of Nazara Technologies on the NSE, while it sold 45 lakh scrips, amounting to a combined 2.43% stake in the gaming and e-sports company.

The shares were disposed of in the price range of ₹240.03-240.18 apiece, taking the transaction value to ₹216.32 crore.

After the latest transaction, SBI MF's holding in Nazara Technologies has come down to 3.35% from 5.78%.

Nazara Technologies Q2 earnings

Nazara Technologies last month reported consolidated net loss of ₹33.93 crore in the second quarter of current financial year, compared to a profit of ₹16.24 crore in the same period last year.

The company stated that the loss was caused by a one-time impairment of ₹914.70 crore on its investment in associate company Moonshine Technologies, which operates PokerBaazi, due to the prohibition on offering online money games following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

“Nazara’s stake in Nodwin Gaming reduced below 50%, resulting in the de-subsidiarization of the business. Consequently, Nazara measured its retained stake in Nodwin Gaming at fair value, leading to a one-time gain,” the firm said in a regulatory filing.

It witnessed a 65.06% year-on-year (YoY) increase in its revenue from operations to ₹526.46 crore for the September FY26 quarter, as against ₹318.94 crore in the year-ago period, bolstered by improved retention, deeper LiveOps engagement, and cross-platform distribution across mobile, console, and PC.

During the reporting quarter, the gaming segment contributed ₹295.88 crore to revenue, representing nearly three times the annual growth from ₹114.05 crore in Q2FY25.

Its Adtech business revenue increased nearly five-fold YoY to ₹143.79 crore in the second quarter of the current fiscal year, compared to ₹24.13 crore in the same period of FY25.

However, its e-sports segment revenue fell 51.95% annually to ₹87.34 crore, as against ₹181.76 crore in the year-ago quarter.

Mobile gaming remained its contributor, led by global franchises, supported by recurring content seasons and strong engagement metrics.

Furthermore, its PC/console publishing business continued to perform steadily through evergreen global titles, alongside incremental gains from catalogue monetisation and platform expansion, it added.

Its offline interactive entertainment brands, Smaaash and Funky Monkeys, delivered profitable growth driven by “standardized centre playbooks, growing repeat footfall, and disciplined expansion.”

The firm’s EBITDA (earnings before interest, tax, depreciation, and amortisation) stood at ₹62 crore during the quarter under review, marking a 146.4% YoY jump from ₹25.2 crore in Q2FY25.

Its EBITDA margin expanded by 390 basis points (bps) annually to 11.8% from 7.9%, it added.

As of 11:18 am, Nazara Technologies shares traded 0.71% lower at ₹251.40, underperforming the NIFTY50 index which was down 0.17%.