Crores worn out as buyers flee gaming shares—did they see it coming?

Shares of Nazara Technologies plunged 14% in two periods—13% on Wednesday and one other 1.2% on Thursday. Delta Corp and OnCellular Global slipped 2% and three%, respectively, in two periods.

“The passage of the net gaming invoice has created a direct overhang for gaming shares, and the near-term influence appears to be like sharply destructive. Since the invoice successfully bans real-money gaming (RMG), which at present contributes practically 86% to India’s on-line gaming revenues, investor sentiment has turned cautious,” stated Hariprasad Ok., a Sebi-registered analysis analyst and founder, Livelong Wealth.

Yet, amid the carnage, 1000’s of small buyers who had been steadily trimming their stakes in gaming shares over the previous 12 months seem to have walked away simply in time.

Did buyers see it coming?

A Mint evaluation of shareholding information reveals a placing development: retail buyers (these holding as much as ₹2 lakh in fairness) have been progressively trimming their stakes in gaming shares for a 12 months earlier than the ban.

To be certain, retail buyers pared publicity in Nazara Technologies for 4 straight quarters. In the June quarter alone, 11,272 retail buyers exited the inventory, lowering the bottom to 114,420 from 125,692 in March.

These buyers have seen their wealth erode by round ₹200 crore in two buying and selling periods following the ban, however the ones who exited the inventory in the course of the June quarter might have walked away with hefty positive factors of practically 37%.

These exits weren’t new, as their retail shareholders’ base noticed a sequential discount. Besides, their possession steadily declined to 10.94% in June, down from 15.79% a 12 months in the past. Institutional buyers additionally pared stakes: FPIs minimize by 0.3 factors to 25.95%, and mutual funds by 0.64 factors to eight.95% within the June quarter, on a sequential foundation.

 

Underlying resilience

Nazara has been fast to reassure buyers. It clarified that the Promotion and Regulation of Online Gaming Bill, 2025, has no direct bearing on its consolidated revenues or Ebitda. “The firm’s solely oblique publicity to RMG is thru its 46.07% stake in Moonshine Technologies Private Limited (PokerBaazi),” the corporate clarified in a launch.

Consider Moonshine Technologies—Nazara’s affiliate firm and the operator of PokerBaazi. Its internet income surged 54% year-on-year in Q1FY26 to ₹191.8 crore, marking its best-ever quarter. PokerBaazi’s gross gaming income (GGR) grew 46% to ₹434 crore, pushed by larger person engagement and improved merchandise, in accordance with the corporate’s presentation.

But the priority is notion. “While Nazara’s core companies in e-sports, adtech, and gamified studying stay sturdy, the inventory is underneath strain as a consequence of notion. Despite firm assurances, buyers concern a possible regulatory crackdown may power a major write-down of its 46% stake in Moonshine Games, valued at over ₹1,000 crore,” stated Harshal Dasani, enterprise head at Invasset PMS.

He concluded that long-term buyers could also be comforted by its diversified income and powerful stability sheet, however merchants are awaiting regulatory readability.

“The market response has been swift, with fears round its ₹800+ crore funding in PokerBaazi probably getting written off. While diversified income streams buffer the hit, the inventory will probably stay unstable till readability emerges,” Hariprasad added.

OnCellular Global: restricted publicity, blended move

For OnCellular Global, the story was extra uneven. In Q1FY26, 1,395 buyers exited, chopping the retail base to 86,546. Earlier quarters confirmed a blended development of internet additions and a discount within the retail investor base. Though, retail possession slipped simply 0.01 factors to 33.29% in June.

On the opposite hand, FPIs marginally elevated holdings to 1.48%, whereas mutual funds stayed away. Despite investor churn, the inventory delivered 22.3% positive factors within the June quarter.

“OnCellular’s publicity is comparatively oblique—centered on cellular leisure and gaming subscriptions moderately than RMG. Still, as a part of the gaming basket, it could see collateral promoting. Fundamentally, its threat from the ban is decrease than Nazara or Delta,” Hariprasad stated.

 

 

A regulatory jolt

Parliament has handed the Promotion and Regulation of Online Gaming Act, 2025 that pulls a transparent line: e-sports, academic video games, and social play are permitted; all real-money on-line video games—whether or not skill- or chance-based—are banned outright.

The Act bars corporations from providing or promoting RMG, and prohibits banks from processing associated funds. Violators resist three years’ jail and fines as much as ₹1 crore, with harsher penalties for repeat offences. The authorities additionally has the facility to dam offending platforms.

The broad definition protecting each video games of talent and likelihood places well-liked codecs like fantasy cricket, rummy and poker in danger and raises severe questions for each home and abroad buyers.

“Because of this scope, corporations providing such video games could also be prohibited from working… ‘Real Money Games’ like fantasy cricket, rummy, and poker are extraordinarily well-liked with hundreds of thousands of gamers. Overseas corporations have additionally invested in these codecs, placing enterprise fashions and investments in danger,” said Vikram Jeet Singh, partner at BTG Advaya, a disputes and transactional law firm.