Delta Corp Q3 earnings: Shares fall 4%, firm cites this factor for weak show

Shares of Delta Corp fell 4% in early deals on Friday after the gaming and casino player reported its Q3 earnings. The firm also cited a fall in profitability to the recent hike in GST for the gaming industry. Profit declined 60% to Rs 14.28 crore in the December 2025 quarter against a net profit of Rs 35.73 crore in the year-ago period. 

Delta Corp shares fell 4% to Rs 69.56 on BSE. Earlier, the stock opened flat at Rs 72.66. Market cap of the gaming and entertainment firm fell to Rs 1877 crore on BSE. Total 0.66 lakh shares of the firm changed hands amounting to a turnover of Rs 46.30 lakh. 

The stock has lost 36.35% in a year and fallen 53 per cent in two years. 

Revenue from operations declined 14 percent to Rs 186.88 crore in the December 2025 quarter from Rs 160.28 crore in Q3 of the previous fiscal. 

EBITDA or earnings before interest, taxes, depreciation, and amortization, slipped 50% to Rs 24.1 crore on a year on year basis ago. EBITDA margin also dropped to 15.05 percent in Q3 against 25.03 percent (YoY).

GST Impact   

The company’s profitability was materially impacted by an increase in the GST rate to 40% on the sale of gaming chips. Management is actively implementing multiple operational and efficiency-led initiatives to mitigate this impact. Simultaneously, the Company continues to engage constructively with the Government and has made representations reiterating its position that casino taxation should be levied on Gross Gaming Revenue (GGR), in line with global best practices.

In September last year, the GST Council hiked tax on online real money gaming from 28% to 40%, classifying it as a 'sin good' alongside casinos and betting.

Demerger Plan 

The gaming and casino player has filed an application with the National Company Law Tribunal (NCLT) seeking approval for the demerger of its businesses into two separate entities: One entity focused on the Gaming business and another entity focused on Hospitality and Real Estate

The proposed demerger will be implemented as a mirror split, whereby every shareholder of Delta Corp Ltd will receive one share each in the resultant company. This restructuring is intended to enable sharper strategic focus and unlock long-term shareholder value. 

Delta Corp is engaged in the operation of casinos. Its segments include real estate, gaming, hospitality and others. The company operates its gaming and hospitality businesses under the DELTIN brand. The company owns three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.