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.

Delta Corp has reported its Q3 consolidated financial results, showing a significant decline across key financial metrics including profitability, revenue, and operational efficiency compared to the corresponding period last year. The gaming and hospitality company faced challenging operating conditions during the quarter, reflected in its comprehensive financial performance.

Financial Performance Overview

The company's financial performance for Q3 showed notable year-on-year declines across major parameters:

Profitability and Operational Metrics

The most significant impact was observed in the company's bottom line, with consolidated net profit declining substantially to ₹143.00 million from ₹357.00 million in the same quarter of the previous year. This represents a steep 60% year-on-year decrease, indicating considerable pressure on the company's profitability during the quarter.

Operational efficiency also showed deterioration, with EBITDA falling 25.2% to ₹240.00 million compared to ₹321.00 million in the corresponding quarter last year. The EBITDA margin compressed to 15.00% from 16.53%, reflecting a decline of 153 basis points year-on-year.

Revenue Performance

Revenue generation faced headwinds, with the company reporting ₹1.60 billion in Q3 compared to ₹1.90 billion in the corresponding quarter last year. The 15.8% decline in revenue suggests reduced business activity across the company's operations during the reporting period.

Key Performance Indicators

The Q3 results highlight multiple operational challenges faced by Delta Corp:

• Net profit margin compression due to steeper decline in profits compared to revenue
• EBITDA margin deterioration indicating operational efficiency pressures
• Reduced business volumes contributing to lower revenue generation
• Year-on-year performance indicating difficult market conditions across all key metrics

These comprehensive financial results provide insight into the company's performance during Q3, showing the impact of various operational factors on revenue generation, operational efficiency, and overall profit margins.