We are all aware of your clarification on the online gaming rules and their implications on your financials. While you have stated that, on a consolidated basis, you have not been reporting the 46% stake in PokerBaazi and its implications on your consolidated revenue, you have also mentioned that the contribution to PAT from the associate was negative in Q1 of FY26. Could you quantify that for us—any range you can share—and explain why you believe this news will not significantly impact your financials?
Nitish Mittersain: In Q1, Nazara reported approximately 100% year-on-year growth in revenue, close to 80–90% growth in EBITDA, and over 100% growth in PAT. It is important to understand that the real money gaming business did not contribute any revenue to our reported quarterly financials. Therefore, even with media speculation about what might come in this bill, any potential negative impact on the real money gaming business will not affect our reported financial performance—revenues, EBITDA, or PAT—going forward. The company continues to be on a strong growth trajectory.
It is also important to note that our core business is the gaming IP business. We operate globally, with over 80% of revenues coming from international markets. Nazara is truly India’s largest diversified global gaming platform, and we will continue to build that business.
Regarding Moonshine, while they are leaders in their space and are focusing on growth, the company has reported quarterly EBITDA losses. As a share of associate, we took approximately ₹20–25 crore—likely around ₹23–24 crore—as a PAT loss in Q1. So, it was not contributing profits at the PAT level. Therefore, we do not expect any negative financial impact on our operating performance. Of course, it is a significant investment from Nazara’s perspective, and we will continue to evaluate it depending on the fine print of the bill when it is released.
That leads to my next question. We understand you have already invested about ₹830 crore in PokerBaazi, with another ₹150 crore in the pipeline, if my numbers are correct. When you say you will continue to evaluate, does that mean this ₹150 crore investment has been put on hold until there is more clarity?
Nitish Mittersain: The ₹150 crore has already been invested earlier in the form of compulsory convertible preference shares. So, it is not a new investment—it was part of the original acquisition.
What about future plans for PokerBaazi itself? The Street is concerned that the investments you have already made might involve some write-offs, and also, what would be your Plan B if things don’t go as expected?
Nitish Mittersain: Nazara’s gaming platform is designed to de-risk and diversify. Over the years—we have been around for 25 years—we have realised that gaming is always evolving. If we run a stable platform, many times disruptions actually create opportunities. So yes, depending on the outcome of the bill, this investment could carry some risk. But Nazara is extremely well-capitalised. We have close to ₹800 crore in cash on the balance sheet, we are nearly debt-free, and our investments in core gaming studios are delivering very well. We continue to grow strongly on that front.
Could you also help us understand what you expect from the meeting scheduled for today and tomorrow? There are all sorts of conjectures—like a potential ban on online gaming advertisements. Since we frequently see PokerBaazi ads on TV, how much of this could impact operations? Where are you pegging your expectations right now?
Nitish Mittersain: To reiterate, there will be no impact on Nazara’s financial performance. However, depending on the regulations for real money gaming, there could certainly be an impact on PokerBaazi’s operations and performance. I don’t want to add to the speculation, since there is already a lot of it in the media. It’s best to wait until the bill is actually presented, and then we can discuss what it contains.
