PokerBaazi Fallout Drags Nazara To INR 34 Cr Loss In Q2

Gaming company Nazara Technologies plunged into the red in Q2 FY26, posting a net loss of INR 33.9 Cr against a net profit of INR 16.2 Cr in the year-ago quarter. In the previous quarter, Nazara’s PAT stood at INR 51.3 Cr.

The company fell into a loss due to the ban on real-money gaming, which impacted one of its portfolio companies, PokerBaazi. In its balance sheet, Nazara recognised an aggregate reduction of INR 914.7 Cr in its investment in PokerBaazi, shedding the investment value to INR 96.5 Cr.

“After recognising the impairment loss, Nazara reported a standalone net loss of INR 966.95 Cr during the quarter and INR 939.34 Cr for the year-to-date period. Despite this exceptional and non-recurring loss, the company’s standalone net worth remains strong at INR 2,236.42 Cr, reflecting a stable financial position,” Nazara said.

Meanwhile, operating revenue for the quarter jumped 65% YoY and 6% QoQ to INR 526.5 Cr. Total income stood at INR 1,630.9 Cr, bolstered by an ‘other income’ of INR 1,104.5 Cr, which came on the back of Nazara reclassifying Nodwin as an associate entity from a subsidiary earlier. The change led to a one-time gain as the company marked its investment to fair value at the time of losing control.

Total expenses surged to INR 534.3 Cr (up 66% YoY) in Q2 FY26 from INR 321.3 Cr in the same period last year.

Adding to regulatory pressure, Nazara and group entities Halaplay and OpenPlay were served GST show-cause notices totalling more than INR 1,000 Cr in Q2.

The demands relate to the government’s recent move to levy 28% GST on the full value of player deposits instead of net gaming revenue, an issue affecting the entire gaming industry. The company has challenged these notices.

(The story will be updated soon)

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