Delta Corp has filed an application with the National Company Law Tribunal (NCLT) seeking approval for a major corporate restructuring that would split its business operations into two separate companies.

Proposed Business Separation Structure

The restructuring plan involves dividing Delta Corp's current operations into two distinct entities:

This separation would allow each business segment to operate independently, potentially enabling more focused management strategies and clearer operational frameworks for each vertical.

NCLT Approval Process

The company has formally submitted its application to the NCLT, which is the statutory body responsible for approving corporate restructuring and business reorganization matters in India. The tribunal will review the proposed split to ensure it complies with regulatory requirements and serves the interests of all stakeholders.

Strategic Implications

The proposed business separation represents a significant strategic move for Delta Corp, as it would create two specialized entities:

• Gaming-focused entity: Would concentrate exclusively on gaming operations and related activities
• Hospitality and real estate entity: Would handle hotel operations, real estate development, and related hospitality services

This restructuring approach could potentially allow each entity to pursue more targeted growth strategies and operational efficiencies within their respective domains.

Next Steps

The approval process will now proceed through the NCLT's standard review procedures. The tribunal will evaluate the restructuring proposal, consider stakeholder interests, and determine whether to grant the necessary approvals for the business split to proceed.

Delta Corp Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant challenges across its gaming and hospitality operations. The company's performance reflects the impact of regulatory changes and ongoing tax disputes in the gaming sector.

Financial Performance Overview

The company's standalone financial results showed a marked decline in key metrics for Q3FY26. Revenue from operations decreased substantially, while profitability was severely impacted by regulatory and operational challenges.

Segment-wise Performance Analysis

Gaming operations, the company's primary revenue driver, experienced significant pressure during the quarter. The decline in gaming revenue reflects the challenging operating environment, including the impact of increased GST rates on gaming chips to 40%. Hospitality operations showed marginal improvement compared to the previous quarter but remained below prior year levels.

Impact of Online Gaming Act 2025

A major development affecting the company was the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which prohibits online games involving real-money stakes. This legislation had a substantial impact on the company's investment portfolio.

The company reduced the carrying amount of investments in online gaming companies to nil, recognizing the complete halt in revenue-generating activities for these entities.

Nine-Month Performance Trends

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹379.81 crores compared to ₹438.58 crores in the corresponding period of the previous year, representing a 13.4% decline. Net profit for the nine-month period stood at ₹67.63 crores versus ₹125.96 crores in the previous year, showing a 46.3% decrease.

Ongoing Legal and Regulatory Challenges

The company continues to face significant GST-related challenges with show-cause notices totaling ₹23,207.30 crores for alleged short payment of Goods and Service Tax for the period from July 1, 2017, to November 30, 2022. The matter is currently pending before the Supreme Court of India, with arguments from both sides concluded and the case reserved for judgment.

Business Development Updates

Despite operational challenges, the company announced several strategic initiatives:

• New Casino Vessel: Advanced completion stages for induction into Mandovi River by March 2026, with commercial operations expected in April 2026
• Dhargal Land Development: Placed on hold due to current regulatory environment; company evaluating monetization options
• Proposed Demerger: Filed application with NCLT for splitting into separate Gaming and Hospitality/Real Estate entities
• Hotel Expansion: 375+ key hotel project in Panjim progressing well, targeting completion in Q4 FY27

The company's consolidated results showed similar trends, with revenue from continuing operations at ₹160.28 crores in Q3FY26 compared to ₹186.88 crores in Q3FY24. The consolidated net profit from continuing operations was ₹14.28 crores versus ₹63.78 crores in the corresponding quarter of the previous year.