India-based Delta Corp Limited reported a consolidated net profit of ₹14.28 crore ($1.43 million) for the third quarter (Q3) of the financial year (FY) 2026, down 60 percent from ₹35.73 crore ($4.29 million) in the same quarter last year. Revenue from operations declined 14 percent year on year to ₹160.28 crore ($16.03 million).
Shares of Delta Corp, the only company listed on an Indian stock exchange that is primarily engaged in the casino gaming and hospitality sectors, fell sharply in early trade on Friday after the operator reported a steep decline in profit for the December 2025 quarter. The stock slipped 4 percent to ₹69.56 ($0.70) on the Bombay Stock Exchange (BSE), taking the company’s market capitalisation to ₹1,877 crore ($225 million). The company cited higher Goods and Services Tax (GST), regulatory changes in online gaming, and lower casino revenues as key factors weighing on its performance.
Weak Q3 performance pressures stock
Delta Corp shares opened flat at ₹72.66 before slipping sharply in early deals. Around 66,000 shares changed hands on the BSE, with a turnover of ₹4,630,000. The stock has lost 36.35 percent over the past year and is down 53 percent over the last two years.
On a standalone basis, Delta Corp posted a net profit of ₹19.38 crore for the quarter ended December 31, 2025, compared with ₹41.61 crore a year earlier. Standalone revenue from operations fell to ₹117.86 crore from ₹150.17 crore, mainly due to lower gaming income.
Margins hit by higher GST
The company said profitability was materially impacted by the increase in GST to 40 percent on the sale of gaming chips. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 50 percent year on year to ₹24.1 crore, while EBITDA margin dropped sharply to 15.05 percent from 25.03 percent in the year-ago quarter.
Earlier this week, Delta Corp also announced the closure of its casino operations at The Zuri White Sands Goa Resort and Casino, with effect from 9 January. The company said the decision was part of a broader operational realignment following the sharp increase in GST on casino and gaming activities.
In September last year, the GST Council raised the tax rate on online real money gaming from 28 percent to 40 percent, classifying it as a sin good along with casinos and betting. Delta Corp said it is taking operational and efficiency-led measures to reduce the impact while continuing discussions with the government.
The company reiterated its position that casino taxation should be levied on Gross Gaming Revenue rather than gross bet value, in line with global practices.
Online gaming ban triggers write-downs
A major drag on earnings came from the Promotion and Regulation of Online Gaming Act, 2025, which bans online games involving real-money stakes. As a result, Delta Corp wrote down the value of its investments in online gaming firms, including Deltatech Gaming, Head Digital Works and Openplay Technologies.
The company recorded a ₹378.34 crore reduction in fair value in its standalone books and a ₹459.52 crore impairment at the consolidated level, both routed through Other Comprehensive Income. Management said the carrying value of these investments has now been reduced to nil.
GST litigation remains key overhang
Delta Corp continues to face large GST demands totalling ₹23,207.30 crore for the period between July 2017 and November 2022. The notices are based on GST being levied on gross bet value rather than Gross Gaming Revenue.
The company said it has challenged the demands and secured interim relief from various High Courts. The matter is now before the Supreme Court, where arguments have concluded and a verdict is awaited. Based on legal advice, Delta Corp has not made any provisioning for the disputed amount.
Demerger and expansion plans
Delta Corp has filed an application with the National Company Law Tribunal seeking approval to demerge its gaming business from its hospitality and real estate operations into two separate listed entities. The demerger will be executed as a mirror split, with shareholders receiving one share in the resulting company.
The company is also advancing its physical expansion plans. A new casino vessel for the Mandovi River in Goa is expected to be inducted by March 2026, with commercial operations likely to begin in April, subject to approvals. In hospitality, Delta Corp aims to expand its room inventory to over 750 keys by FY27 through projects in Goa and Alibaug.
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