Delta Corp Ltd Q2FY26 FY26 – From Casinos to Courtrooms: ₹23,000 Cr GST Jackpot Nobody Wanted
1. At a Glance
Welcome to India’s only listed casino stock, where the roulette wheel spins faster than tax notices. Delta Corp Ltd — once the poster child of India’s gaming and leisure boom — now finds itself playing blackjack with the GST department.
At ₹79.6 per share (as of Oct 21, 2025), the company commands a market cap of ₹2,131 crore, trading below book value (P/B 0.93). Quarterly revenue stands at ₹183 crore, down 2.6% QoQ, while PAT slipped 7% to ₹25.1 crore. The operating margin held at 22%, proving that even under tax siege, Goa’s gamblers still have faith in lady luck.
But the real number turning heads isn’t on the income statement — it’s the ₹23,207 crore GST demand sitting like a ticking time bomb. That’s 10x Delta’s total assets. Even the casinos’ jackpot machines don’t print numbers that big.
2. Introduction
Once upon a time, before fantasy cricket apps ruled Indian screens, Delta Corp was the undisputed king of physical gaming — a synonym for Goa’s nightlife and Daman’s dream. Its cruise casinos Deltin Royale and Deltin JAQK were as famous as Kingfisher parties in the 2000s.
Then came the plot twist: regulatory déjà vu. GST authorities declared that casinos should pay tax not on the “rake” (their commission), but on the total value of bets placed. That’s like asking a restaurant to pay tax on all the customers’ wallets, not the food bills.
And just when the company tried diversifying into real estate and digital gaming — GST, legal overhangs, and subdued demand turned this once-sparkling story into a Bollywood courtroom drama.
Still, the gambler spirit remains — because, well, the house always thinks it wins.
3. Business Model – WTF Do They Even Do?
Think of Delta Corp as India’s mix of Las Vegas Sands + Dream11 + DLF, all rolled into one slightly confused avatar.
Casino Gaming (≈80% revenue) – Operates 3 of the 6 offshore gaming licenses in Goa and 2 land-based casinos (Goa & Sikkim). With 2,000 gaming positions (to double by FY26), this is the company’s cash cow, albeit one constantly milked by regulators.
Online Gaming (≈15%) – Operates Adda52.com, a poker platform that’s lost more users than Tinder during lockdown. Revenue dropped 9% YoY thanks to the 28% GST on entry amount. Because in India, even skill gaming can’t outsmart the taxman.
Hospitality (≈5%) – Manages two hotels: Deltin Suites (Goa) and The Deltin (Daman). Good occupancy, better buffets, but poor profitability.
Recently, the group took a detour into real estate development, partnering with Alpha Alternatives and Peninsula Land to form a ₹765 Cr fund. Delta’s own skin in the game? ₹90 Cr. It’s like using poker winnings to build a housing society — bold, if not confusing.
4. Financials Overview
Metric
Latest Qtr (Q2FY26)
YoY Qtr (Q2FY25)
Prev Qtr (Q1FY26)
YoY %
QoQ %
Revenue
₹183 Cr
₹188 Cr
₹184 Cr
-2.6%
-0.5%
EBITDA
₹40 Cr
₹34 Cr
₹39 Cr
17.6%
2.6%
PAT
₹25.1 Cr
₹27 Cr
₹29 Cr
-7.0%
-13.4%
EPS (₹)
0.94
1.01
1.10
-7.0%
-14.5%
Annualised EPS = ₹0.94 × 4 = ₹3.76 At CMP ₹79.6 → P/E ≈ 21x (adjusted for optimism).
Commentary: Even casinos can’t defy gravity — topline stagnates, margins compress, but the company’s still distributing 125% dividends like a gambler doubling down.
5. Valuation Discussion – Fair Value Range
Method 1: P/E Method Industry average P/E = 32.6 EPS = ₹9.52 (TTM) → Fair Value Range = 9.52 × (12–20) = ₹115 – ₹190
Method 2: EV/EBITDA EV/EBITDA = 9.68× (Current) vs Peer median ≈ 15× If re-rated to 12–15× → Fair EV ≈ ₹2,000–₹2,400 Cr → Equity value per share ≈ ₹75 – ₹95
