Delta Corp has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26, disclosing its environmental, social, and governance (ESG) performance in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations.

The Mumbai-based gaming and hospitality operator reported a turnover of ₹4,99,97,25,258 and a net worth of ₹22,12,92,66,339 as per the filing. The company stated that CSR provisions under Section 135 of the Companies Act, 2013 are applicable to it.

Governance and Policy Framework

Delta Corp confirmed that its policies cover all nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). These policies have been approved by the Board of Directors and extended to value chain partners. However, the company noted that it has not yet established formal, publicly disclosed sustainability commitments or targets with defined timelines.

Managing Director Ashish Kapadia oversees the implementation of the business responsibility policies. The company does not have a dedicated Board Committee for sustainability; instead, senior management reviews and decides on sustainability-related issues. There was no independent external assessment of policy working during the year.

Environmental Initiatives

The company highlighted several waste management practices:

• Organic Waste: Organic Waste Composting (OWC) units process 350–400 kg of food and organic waste daily, converting it into compost used for landscaping and shared with local institutions.
• Hazardous Waste: Hazardous waste is disposed of via government-authorised vendors. The use of Europa filters in generators extends oil change intervals, reducing hazardous lubricating oil generation.
• Refrigerant Transition: Air conditioning systems were upgraded from R22 refrigerant (Global Warming Potential of 1,760) to R134a (GWP of 1,300) to reduce greenhouse gas emissions.

Delta Corp operates four casinos and six offices nationally, serving three states and one union territory. Exports contributed 1.11% to total turnover. The company is compliant with applicable environmental laws, including the Water and Air Prevention and Control of Pollution Acts.

Employee Welfare and Safety

As of the end of FY26, Delta Corp employed 2,099 permanent and non-permanent employees, comprising 1,609 males and 490 females. There were no workers on the rolls.

Key employee metrics include:

The company reported a turnover rate of 39% for permanent employees in FY26, up from 25% in FY25 and 29% in FY24. Delta Corp maintains an Occupational Health and Safety Management System covering all employees, supported by a third-party safety partner for offshore vessels. No disciplinary actions for bribery or corruption were recorded against directors or employees during the year.

Delta Corp reported a consolidated net loss of ₹212.42 crore for the quarter ended June 30, 2026 (Q1FY27), compared to a net profit of ₹29.46 crore in the same period last year. The significant swing was primarily driven by an exceptional provision of ₹306.73 crore related to Goods and Services Tax (GST) liabilities, recognized following a Supreme Court judgment on the valuation of casino gaming services. Standalone net loss for the quarter stood at ₹109.27 crore, down from a profit of ₹25.84 crore year-on-year.

Financial Performance Overview

The company’s operational revenue declined modestly, while the exceptional charge severely impacted profitability. The following table summarizes key financial metrics for Q1FY27:

Impact of Supreme Court Judgment on GST

The exceptional item of ₹306.73 crore in consolidated results (₹200.62 crore standalone) stems from the Hon’ble Supreme Court’s judgment dated May 27, 2026, regarding GST applicability on online gaming and casino transactions. Based on Rule 31C of the CGST Rules, Delta Corp reassessed its liabilities for the period from July 1, 2017, to September 30, 2023.

The provision includes estimated GST payable of ₹143.89 crore (consolidated), interest of ₹148.45 crore, and penalty of ₹14.39 crore. Statutory auditors Walker Chandiok & Co LLP noted that management has filed submissions with adjudicating authorities but continues to believe it has grounds to contest aspects of the computation. No provision was made for separate "mixed supply" allegations regarding food, beverages, and liquor, as management maintains these are independent supplies outside GST ambit or separately charged.

Operational Updates and Strategic Moves

Despite the tax headwind, core casino gaming revenue remained robust at ₹151.85 crore (consolidated), though slightly down from ₹172.71 crore in Q1FY26. Hospitality revenue grew to ₹16.55 crore from ₹12.00 crore year-on-year.

Operationally, the company closed its Deltin Denzong Casino in Sikkim during the quarter to improve long-term profitability. Additionally, King Casino was non-operational as it vacated its Mandovi River location for a new vessel deployment, pending court approvals. The company also completed acquisitions of Shanta Infratech Private Limited and Easymile Parking Solutions & Management Private Limited on April 30, 2026, accounted for provisionally under Ind AS 103.

What the Numbers Show

While top-line revenue contracted by approximately 8.5% year-on-year, the underlying profit before tax and exceptional items declined more sharply from ₹37.57 crore to ₹27.74 crore. This suggests margin pressure beyond just the revenue decline, potentially linked to higher other expenditure (₹53.53 crore vs ₹60.20 crore YoY, but rising relative to revenue). The massive one-time GST provision obscures operational trends, but the fact that standalone profit before exceptional items rose to ₹51.10 crore from ₹33.33 crore indicates that core standalone operations are generating stronger cash flows than the consolidated group, which includes losses from subsidiaries and joint ventures.