Delta Corp reported a sharp decline in profitability for the financial year ended March 31, 2026, with consolidated net profit falling 65.75% to ₹85.29 crore from ₹248.99 crore in the previous year. The downturn was primarily driven by an increase in the Goods and Service Tax (GST) rate on gaming chips from 28% to 40%, alongside strategic rationalisation of its operating portfolio.

Consolidated gross revenue decreased by 5.68% to ₹690.19 crore, with net revenue standing at ₹688.46 crore after accounting for intragroup transactions. Casino gaming revenue, the core business segment, declined 5.31% to ₹642.59 crore due to the higher tax burden and temporary closure of King Casino for vessel transition. Hospitality division revenue also contracted by 10.46% to ₹47.60 crore, impacted by connectivity issues and geopolitical tensions affecting travel demand.

Financial Performance

The company’s EBITDA dropped significantly by 29.84% to ₹171.31 crore from ₹244.17 crore in FY25, resulting in a margin contraction to 24.88% from 33.46%. This decline reflects lower revenue bases, increased employee costs for upcoming offshore vessel operations, and elevated legal expenses related to GST litigation. Other income fell 28.66% to ₹40.72 crore, contributing to a total income decline of 7.31% to ₹729.18 crore.

Note: Previous year total income used for comparison where net revenue specific prior figure not explicitly isolated in summary text, though text states revenue declined 5.64% YoY.

Strategic Developments

Delta Corp undertook measured rationalisation by discontinuing smaller businesses, including Deltin Zuri in Goa and Deltin Denzong in Sikkim, which were deemed commercially unviable under the revised taxation framework. The company continues to invest in its new offshore casino vessel, expected to commence operations in FY27, which is projected to nearly double gaming capacity. Additionally, the proposed demerger of hospitality and real estate businesses into separate listed entities aims to enhance operational focus and unlock shareholder value.

What the Numbers Show

The divergence between the significant drop in net profit (-65.75%) and the more moderate decline in revenue (-5.64%) highlights the severe impact of non-operational and exceptional factors on bottom-line results. While the current year included an exceptional charge of ₹5.51 crore for new labour code liabilities, the previous year benefited from substantial exceptional gains of ₹213.22 crore from the divestment of Deltatech Gaming Limited. This comparison indicates that the year-over-year profit contraction was heavily influenced by the absence of prior-year one-time gains rather than solely operational deterioration.

Balance Sheet Position

Despite the earnings pressure, the group maintained a debt-free balance sheet with cash and cash equivalents of approximately ₹75.70 crore as of March 31, 2026. Return on Net Worth turned negative at -15.43%, compared to 6.65% in the previous year, largely due to reduced profitability and a one-time impairment provision of approximately ₹460 crore on investments in online gaming businesses following regulatory restrictions.

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.