SBI Mutual Fund has pared its stake in Nazara Technologies through a bulk deal, selling shares worth approximately ₹108 crore on Monday, according to exchange data.
The mutual fund house offloaded 45,09,360 equity shares of the gaming and esports company at an average price of ₹240.18 per share. Prior to the transaction, SBI Mutual Fund held 2.14 crore shares, representing a 5.78% stake in Nazara. Following the sale, its shareholding has reduced to 1.69 crore shares, or 4.55% of the company’s paid-up equity capital.
Despite the stake sale, Nazara has reported strong top-line growth in recent quarters. The company’s operating revenue jumped 65% year-on-year to ₹526 crore in Q2 FY26, compared with ₹319 crore in the corresponding quarter last year, driven by growth across its gaming and adtech verticals.
However, profitability came under pressure during the quarter. Nazara posted a net loss of ₹34 crore in Q2 FY26, compared with a profit of ₹18 crore in Q2 FY25. On a half-year basis, the company’s profit declined 57.5% to ₹17 crore in H1 FY26, down from ₹40 crore in H1 FY25.
The decline in earnings was largely impacted by regulatory changes in the online gaming sector. Following the enactment of the Promotion and Regulation of Online Gaming Act, Nazara recognised an aggregate reduction of ₹914.7 crore related to its investment in Moonshine Technologies, the parent company of PokerBaazi.
In August 2025, Nazara had also withdrawn its plan to acquire a minority stake in Moonshine Technologies, citing regulatory uncertainty arising from the new gaming law.
At market close, Nazara Technologies shares were trading at ₹252, giving the company a market capitalisation of ₹9,355 crore, or roughly $1 billion, underscoring continued investor interest despite near-term regulatory and earnings challenges.
Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.