Delta Corp Q2 Results: GST Charge Drives ₹106 Crore Loss

Key Points

• That one line, a massive ₹136.92 crore exceptional GST provision, turned a pre-exceptional profit of ₹21.57 crore into a crushing loss in an instant.
• All those GST notices from 2023 that the company had to deal with? The alleged amount was a staggering ₹16,822.98 crore, but the adjudicated amounts are nothing to write home about.
• Unfortunately, heavy rain in Daman and a non-working Goa vessel didn’t help much either, but the GST provision was the real killer.

Delta Corp Loses ₹106 Crore for Second Straight Time Thanks to A Single GST Provision

Delta Corp managed to make money out of its casinos from July to September, but ended up reporting a heavy loss. It’s really down to one special line in their accounts, and that line has now landed the company with two red quarters in a row.

Profit Turns to Loss, But Just One Line Did It

The casino operator posted a net loss of ₹106.41 crore, according to NDTV Profit’s results report. That is a pretty big difference from last year when the same quarter brought in a profit of ₹25.10 crore, basically a complete reversal of fortunes. Even before exceptional items and tax, the company still managed to rake in ₹21.57 crore, less than half of last year’s ₹34.69 crore net.

But, and this is a big but, the company then booked an exceptional GST provision of ₹136.92 crore, a whopping 6.3 times larger than any other line. Floods, and the Deltin Denzong casino in Sikkim being shut down weighed on trading, but it’s the GST provision that really turned the quarter sour.

Revenue Falls as Gaming Capacity Squeezes Down

Revenue from operations fell by a major 12.8% year on year, a pretty big drop from ₹182.76 crore to ₹159.34 crore. Casino gaming, which drives the company, fell by a similar 13.4% to ₹151.28 crore. Segment result slumped to a new low of ₹26.67 crore from ₹31.11 crore, while EBITDA took a hit of 28.8% to ₹28.4 crore. So even though revenue did manage to go up in a small way, it’s now 2.2 percentage points less profitable than last year.

Tables weren’t being opened as much, although the report didn’t say if player demand had also softened up. The King Casino, in Goa, stayed shut the whole half year, so the company’s not even making money out of that one. And also to top it all off, the Deltin Denzong casino was shut down in Sikkim, in June, reducing the gaming floor even further.

Weather Trouble in Daman, and A Licence Fight Still Up in the Air

Hospitality too had its own problems to deal with, courtesy of the monsoon. The Deltin hotel in Daman was flooded and had to shut down for 37 days before it could reopen on 29 August 2026. Hospitality revenue fell to a paltry ₹7.85 crore from ₹8.31 crore, while the segment loss widened to ₹4.54 crore from ₹2.74 crore.

But Daman has an old issue too, beyond just bad weather. On 2 September 2026, it was reported that the Supreme Court had issued notice on the company’s appeal of a Bombay High Court ruling. Delta has invested over ₹450 crore in The Deltin, but still hasn’t got permission to run slot machines. The notice keeps the case alive, but still no licence.

₹16,822 Crore Claim Rejected: Deciphering the Numbers Behind the GST Case

With the numbers laid out side-by-side, the GST case does not look so scary but more complex. The tax intelligence officers sent show cause notices to Delta and its two subsidiaries in September 2023, accusing short payment of ₹16,822.98 crore for July 2017 to March 2022 as per the detailed breakdown published in Exchange4Media. These were allegations not the amount billed, and each figure represents a different calculation.

 Then the game-changer was the Supreme Court judgment on 27 May 2026 setting up the framework for valuation of the transactions in casinos. While this used Rule 31C, there was a need for the tax authorities to calculate the amount in individual cases. Delta’s provision of ₹443.65 crore including ₹306.73 crore recorded in the June quarter, when the company made a loss of ₹212.42 crore, is the company’s estimation of the liability.

Payments Done and Demands Ongoing

The company has already made part of the payments, so the provision is not just bookish. After the quarter, the company made a payment of ₹80.97 crore in principal in the order relating to July 2017 to March 2022. Even with that, it believes it has “very strong grounds to challenge the entire demand for mixed supply” and rule 31C.

More demands are coming in as the company is fighting back. In the notice of 25 September 2026, the authorities of Goa have made a ₹116.43 crore differential GST demand along with a ₹37.11 crore penalty and 18% annual interest. Separate notices for April 2022 to March 2023 allege a demand of ₹1,883.96 crore, which are not yet adjudicated.

There is a distinct benefit in the filing, as stated in the AsGam report on the results. Delta is no longer convinced to provide Head Digital Works for any GST claim related to the Deltatech sale.

Stocks Drop After Holiday Delay in Result Announcement

The results were announced on the evening of Monday. With the Dussehra holiday, the investors had to wait for a full day before getting the result. The share price has fallen over 6% in the early trade on Wednesday. As per Business Standard on 21 October 2026, Delta’s market capitalisation is around ₹1,969 crore.

Expert Opinion: Is Delta Paying Interest on Rules Nobody Could Read?

For us, the most disturbing figure here is not the loss, but the interest. During the June quarter, Delta estimated the GST payable at ₹143.89 crore; however, its interest charge stands at ₹148.45 crore. It sounds strange to us because the valuation rules for these casino transactions were introduced only in May 2026. Liabilities from 2017 are now subject to interest exceeding the amount of the tax itself.

Some may say that the rules were always explicit, and Delta just decided to take a chance. However, this is not true because the decision of the court helped determine the approach to the valuation of the transactions.

We should also question the decisions of Delta’s board. The shareholders approved a dividend of ₹0.50 on 10 September 2026 despite the provision of ₹306.73 crore having already been imposed. We think that keeping the money would send a stronger signal at a time when there are still penalties, interest, and new notices to be issued.

Trading performance does not look encouraging as well. Revenue from casino gaming decreased by double digits for two quarters in a row although the closures contributed to this reduction. We do not consider this a declining business yet; however, we do not see any recovery without restoration of capacity.

There are three events to watch next: King Casino approval, Daman ruling, and Goa tax appeals. Until one of them turns out favourable for Delta, the tax dispute will continue grabbing headlines in casinos’ business.