Delta Corp shares dive nearly 18%; here's why and what the gaming firm said

Shares of Delta Corp Ltd fell sharply in Friday's trading session, plunging 17.58 per cent to hit a low of Rs 66.75. The gaming and casino stock was last seen trading 16.47 per cent lower at Rs 67.65. At this level, the counter has rebounded 10.46`per cent over the last three months.

Today's sharp decline in the share price came after the Supreme Court upheld the constitutional validity of the 28 per cent goods and services tax (GST) on online gaming companies retrospectively, backing tax demands exceeding Rs 1 lakh crore on these firms.

Sudipta Bhattacharjee, Partner, Khaitan & Co, who represented several online gaming and casino companies before Supreme Court in this batch said the apex court pronounced two separate judgments --  one on the appeals filed by State Governments against High Courts in Tamil Nadu, Karnataka and Kerala quashing state legislations prohibiting or restricting online money gaming; and second on the GST issues spanning more than Rs 2.5 lakh crore affecting the entire sector.

"In this first judgment, the validity of the anti-online gaming State laws of Tamil Nadu, Kerala and Karnataka have been upheld by reading 'betting' as something different from 'gambling'," he noted.

Company's take

"The Hon'ble Supreme Court has pronounced its order in the matters relating to the show cause notices issued to Delta Corp Limited and its subsidiaries for short payment of goods and services tax," Delta Corp stated.

"Based on limited information available with us at this time, based on the pronouncement by the Hon’ble Supreme Court, it is our understanding that the basis of computation of revenue for the determination of GST that we have adopted since October 2023, will be applicable retrospectively for the period between July 2017 to September 2023 as well," it added.

"This would be a favourable outcome for us as the levy of GST would accordingly not be on the amount of gross bet value of all games played during the relevant period (which had the effect of notionally multiplying the revenue and consequently the GST payable on it), but would be on the amount received from players for the chips sold to them. An update will be provided if required upon receipt and review of the order of the Hon'ble Supreme Court," the firm further said.

Q4 earnings

Delta Corp reported subdued financial performance for the March 2025 quarter. The company posted a steep 90 per cent year-on-year (YoY) decline in consolidated net profit at Rs 16.45 crore for Q4 FY26. Revenue from operations fell 11.72 per cent YoY to Rs 161.25 crore during the quarter, while the company also reported an exceptional loss of Rs 5.51 crore.

On a sequential (quarter-on-quarter) basis, however, the performance showed marginal improvement. Revenue edged up from Rs 160.28 crore in the December 2025 quarter, while net profit increased 15.19 per cent from Rs 14.28 crore. Total expenses declined 3.16 per cent to Rs 149.19 crore in Q4 FY26 compared to Rs 154.06 crore in the corresponding period last year.

Delta Corp is India's only publicly listed company operating in the regulated gaming and hospitality segment. The company runs offshore and land-based casinos in Goa and Sikkim and also has interests in luxury hospitality and online skill gaming businesses.

Stocks such as Nazara Technologies Ltd and OnMobile Global Ltd were also seen trading lower during the opening session today.