Nazara Tech posts Rs 33.9 cr loss in Q2; logs impairment on Moonshine Tech investment

New Delhi, Nov 12 (PTI) Nazara Technologies on Wednesday reported loss of Rs 33.9 crore for second quarter of the 2025-26 fiscal year, and has recorded an impairment on its investment in Moonshine Technologies (PokerBaazi) following India's ban on real money-based online gaming.

Nazara had registered a profit of Rs 16.24 crore a year ago (that is Q2FY25) and Rs 51.34 crore in Q1FY26.

In Q2FY26, the company delivered revenues of Rs 526.5 crore, up 65.1 per cent year-on-year, and EBITDA of Rs 62 crore, growing 146.4 per cent. Growth during the quarter was led by improving retention, deeper LiveOps engagement, and cross-platform distribution across mobile, console, and PC, the company said.

"During the quarter, new regulations in India’s online skill-based real-money gaming space prompted Nazara to record an impairment on its investment in Moonshine Technologies (PokerBaazi) based on fair valuation as per accounting standards," Nazara said in a release.

The carrying amount of the company's investment in its associate Moonshine Technologies, an online gaming company involving real money transactions, has been reduced to Rs 9,653 lakh as on September 30, 2025.

"...since the gaming Act prohibits the Moonshine Technologies sole line of business, resulting in a complete cessation of revenue-generating activities. Accordingly, the company has recognised an aggregate reduction of Rs 91,470 lakh in its carrying amount of the said investment during the quarter ended 30 September 2025," the release said.

Nazara further said that the corresponding deferred tax has not been recognised on the provision for diminution in the value of the investment, as the company does not presently have a probable future taxable capital gain against which such asset can be realised.

Nazara, in the latest earnings release, said that its stake in Nodwin Gaming reduced below 50 per cent, resulting in de-subsidiarisation of the business.

Consequently, the company measured its retained stake in Nodwin Gaming at fair value, leading to a one-time gain.

Nitish Mittersain, Joint Managing Director & CEO of Nazara Technologies, said the company continued strengthening its position as an IP-led, global gaming platform. He noted Nazara is evolving from publishing individual games to building and scaling long-term franchises.

"The accounting adjustments this quarter, including the Moonshine impairment and NODWIN fair value gain, are one-time items and do not impact operating cash flows or the momentum of our core business," Mittersain added. PTI MBI AMJ KVK KVK