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India: Delta Corp swings to $22.3m Q1 loss after GST provision

The casino operator recognised a Rs306.73 crore exceptional charge following the Supreme Court’s May ruling on historic GST liabilities, while casino gaming revenue also declined year-on-year.

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Key Points
Q1 revenue from operations fell 8.5% year-on-year to Rs168.55 crore
Rs306.73 crore GST provision pushed Delta Corp to a Rs212.42 crore net loss
King Casino remained closed during the quarter, while Deltin Denzong in Sikkim ceased operations

Delta Corp reported a consolidated net loss of Rs212.42 crore ($22.3m) for the quarter ended 30 June 2026, compared with a Rs29.46 crore profit a year earlier, after recognising a provision linked to historic Goods and Services Tax disputes.

Revenue from operations was Rs168.55 crore, down 8.5% year-on-year from Rs184.17 crore. Casino gaming generated Rs151.85 crore, compared with Rs172.71 crore in Q1 FY26, while hospitality revenue increased to Rs16.55 crore from Rs12 crore.

EBITDA, calculated from the operator’s reported profit before exceptional items and tax, depreciation and finance costs, was Rs40.30 crore. This compares with Rs50.77 crore on the same basis in the corresponding quarter.

The principal impact on the bottom line was a Rs306.73 crore exceptional provision following the Supreme Court’s 27 May judgment concerning GST valuation for online gaming, betting, gambling and casino transactions.

Delta Corp estimated underlying GST payable of Rs143.89 crore for the period from July 2017 to September 2023, alongside Rs148.45 crore of interest and a Rs14.39 crore penalty.

The provision follows earlier GST notices issued to Delta Corp and subsidiaries covering substantially larger alleged shortfalls. 

The operator continues to contest elements including calculations, interest and penalties, with adjudication continuing under the principles established by the Supreme Court.

Operational pressures also affected the quarter. King Casino was closed while Delta Corp prepared to deploy a replacement vessel on Goa’s Mandovi River. 

A Bombay High Court direction requires the operator to obtain the court’s permission before the new vessel begins operations once other certificates and approvals have been secured.

Delta Corp also closed Deltin Denzong Casino in Sikkim during the quarter. Separately, its exposure to online gaming has already been impaired following India’s Promotion and Regulation of Online Gaming Act 2025, which prohibits online real-money gaming.

The operator is also progressing a revised corporate restructuring. The Mumbai Bench of the National Company Law Tribunal directed shareholder and creditor meetings to be held on 13 August as part of the proposed scheme involving Delta Corp and several Deltin entities.

Last year, Delta Corp suspended its planned Rs2,000 crore to Rs2,500 crore integrated resort-casino development in Goa amid uncertainty over GST policy and the effect of higher taxation on future investment.

Good to know

Delta Corp has recommended a final dividend of Rs0.50 per share for FY26, subject to shareholder approval at its September AGM

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