Don’t Trade in the Dark—Get Your Pre-Market Report Every Day.Join Now
Search stocks
Delta Corp Ltd

| Audited Standalone Financial Results for Quarter & Year Ended March 31, 2026

Report Source

⬤22nd Apr 26

Summary : Delta Corp faces significant GST demands and online gaming regulatory impacts, leading to substantial write-downs, despite an unmodified audit opinion and dividend recommendation.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Employee Benefit Expenses: ₹113.40 Crores (FY26)
  2. Standalone License Fees & Registration Charges: ₹48.01 Crores (FY26)
  3. Standalone Other Expenditure: ₹164.56 Crores (FY26)
  4. Consolidated Employee Benefit Expenses: ₹169.90 Crores (FY26)
  5. Consolidated License Fees & Registration Charges: ₹118.47 Crores (FY26)
  6. Consolidated Other Expenditure: ₹213.54 Crores (FY26)
  7. Standalone Revenue from Gaming Operations: ₹452.36 Crores (FY26)
  8. Standalone Revenue from Hospitality: ₹47.61 Crores (FY26)
  9. Consolidated Revenue from Casino Gaming Division: ₹642.59 Crores (FY26)
  10. Consolidated Revenue from Hospitality Division: ₹47.60 Crores (FY26)
  11. Standalone Net Cash Generated from Operating Activities: ₹116.24 Crores (FY26)
  12. Standalone Net Cash Used in Investing Activities: ₹(81.57) Crores (FY26)
  13. Standalone Net Cash Used in Financing Activities: ₹(44.36) Crores (FY26)
  14. Consolidated Net Cash Generated from Operating Activities: ₹135.00 Crores (FY26)
  15. Consolidated Net Cash Used in Investing Activities: ₹(95.40) Crores (FY26)
  16. Consolidated Net Cash Used in Financing Activities: ₹(54.16) Crores (FY26)
  17. Contingent liability for Goods and Service Tax demands: ₹24,959.69 Crores (Standalone and Consolidated).
  18. Consolidated Property, Plant and Equipment: ₹859.03 Crores (31-Mar-26)
  19. Consolidated Capital Work in Progress: ₹467.87 Crores (31-Mar-26)
  20. Consolidated Goodwill: ₹128.75 Crores (31-Mar-26)
  21. Consolidated Other Equity: ₹2,224.91 Crores (31-Mar-26)
  22. Consolidated Deferred Tax Liabilities (Net): ₹78.82 Crores (31-Mar-26)
  23. Both standalone and consolidated financial results are presented.
  24. Consolidated results include subsidiaries, associates, and joint ventures.

Corporate Overview

  1. India
  2. Significant Goods and Service Tax (GST) demands from authorities.
  3. Impact of the Promotion and Regulation of Online Gaming Act, 2025.
  4. Increased costs due to new labor codes.
  5. Gaming Operations
  6. Hospitality
  7. Formal and compliant with regulatory disclosures.
  8. Confident in favorable legal outcomes for tax disputes.
  9. Casino Gaming Division
  10. Hospitality Division

Risk Factors

  1. Massive contingent liability from GST demands.
  2. Online Gaming Act impacts investee valuations.
  3. Uncertainty of legal outcomes for GST.
  4. Increased costs from new labor codes.

Key Drivers

  1. Recommended final dividend of ₹0.50 per share.
  2. Legal challenges against significant GST demands.
  3. New labor codes implementation, impacting costs.
  4. Revised Composite Scheme of Arrangement approved.

Auditor’s Report

  1. Unmodified opinion on standalone annual financial results.
  2. Unmodified opinion on consolidated annual financial results.
  3. Contingent liability for Goods and Service Tax demands aggregating ₹24,959.69 Crores.
  4. Fair Valuation of Investee Companies engaged in real money gaming business due to new Online Gaming Act.

Board Commentary

  1. Appointment of M/s. MS KC & Associates LLP as Statutory Auditors for 5 years, replacing M/s Walker Chandiok & Co LLP.
  2. Recommended final dividend of 50% (₹0.50 per Equity Share) for FY26.
  3. Contingent liability for Goods and Service Tax demands of ₹24,959.69 Crores.
  4. Fair valuation impact on investee companies due to Online Gaming Act, 2025, resulting in ₹378.34 Crores (standalone) / ₹459.52 Crores (consolidated) reduction in fair values.
  5. Received show cause notices for alleged short payment of GST totaling ₹24,959.69 Crores.
  6. Impact of the Promotion and Regulation of Online Gaming Act, 2025, prohibiting real-money online gaming.
  7. New Labour Codes (effective 21st November 2025) impacting employee benefits.
  8. Board approved Revised Composite Scheme of Arrangement, effective from 1st April 2025, pending NCLT approval.

Corporate Governance

  1. Audit Committee recommended the appointment of new statutory auditors.

Management Discussion & Analysis

Future Strategy

  1. Challenging GST demands through writ petitions and legal proceedings.
  2. Monitoring impact of new labor codes on employee benefits.

Industry Overview

  1. Online gaming industry facing regulatory challenges with new Act.
  2. GST demands based on gross bet value are industry-wide issue.

Risk Control Measures

  1. Management confident of favorable outcome in GST matters based on legal assessment.
  2. Filed writ petitions and obtained stay orders against GST notices.
  3. Liability for Deltatech Gaming Limited's GST exposure capped at ₹34.80 Crores.

Critical Risks

  1. Contingent liability of ₹24,959.69 Crores for GST demands.
  2. Fair valuation impact on online gaming investments due to new Act.
  3. Uncertainty regarding legal outcomes of tax disputes.
  4. Potential for increased employee benefit costs from new labor codes.