Nazara Technologies Limited has received an adverse ruling from the GST appellate authority, with its appeal against a significant tax demand being rejected. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations.

Appeal Order Details

The Office of the Commissioner of CGST & CX. Appeals-I, Mumbai issued an Appeal Order dated December 30, 2025, which the company received on February 05, 2026. The Appellate Authority rejected and disposed of the appeal application filed by Nazara Technologies, upholding the earlier tax demand and penalty.

Background of GST Dispute

The original order was issued by the Additional Commissioner, CGST & C. Ex, Mumbai South Commissionerate under Section 74(1) of the Maharashtra Goods and Services Tax Act, 2017. The demand arose due to non-receipt of export proceeds within the stipulated time period for FY 2017-18 and FY 2018-19.

The company had previously informed exchanges about this matter through intimations dated February 05, 2025 and May 09, 2025, when it first received the original GST order and subsequently filed the appeal.

Company's Response and Next Steps

Nazara Technologies is currently evaluating appropriate legal options following the rejection of its appeal. The company's available remedies include:

• Filing an appeal before the appropriate appellate authority
• Approaching the relevant tribunal against the Appeal Order
• Exploring other legal avenues as deemed appropriate

Financial Impact Assessment

The company has provided clarity on the financial implications of this development. Management stated that the financial impact would be limited to the extent of the demand raised and penalty levied under the Appeal Order. Importantly, the company emphasized that there would not be any material impact on its financial position, operations, or other business activities.

This regulatory disclosure ensures transparency with stakeholders regarding the ongoing GST matter and its potential implications for the gaming and sports media company.

Nazara Technologies Limited has successfully completed its strategic acquisition of Series A Compulsorily Convertible Preference Shares (CCPS) in Rusk Media Private Limited, marking a significant milestone in the company's expansion strategy. The transaction, completed on January 30, 2026, represents a substantial investment in the gaming and media sector.

Transaction Details

The acquisition involved a comprehensive share purchase arrangement with specific financial parameters. Nazara Technologies paid the full consideration amount through a cash transaction, demonstrating the company's strong financial position and commitment to strategic growth.

Shareholding Impact

The completed acquisition significantly enhances Nazara Technologies' position in Rusk Media Private Limited. Following this transaction, the company's total holding in RMPL has increased to 7.18%, providing greater influence and participation in the target company's operations and strategic decisions.

Legal Framework and Compliance

The acquisition was executed pursuant to a Share Purchase Agreement dated November 12, 2025, including amendments thereto. The transaction involved Nodwin Gaming Private Limited, an associate of Nazara Technologies, as a party to the agreement. The company has fulfilled all regulatory disclosure requirements under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Significance

This acquisition represents Nazara Technologies' continued focus on expanding its presence in the gaming and media ecosystem. The investment in Rusk Media Private Limited aligns with the company's broader strategy of building a comprehensive portfolio of gaming and entertainment assets. The transaction demonstrates the company's ability to execute strategic acquisitions while maintaining strong financial discipline through cash-based transactions.