1. At a Glance
Delta Corp is India’s only listed casino operator, straddling Goa’s waters, Sikkim’s hills, and Deltin’s hospitality lounges. Once the face of India’s legal gaming story, it now feels like a gambler stuck on a cold streak.
2. Introduction with Hook
Imagine running a business where the government calls you “legal,” but slaps a ₹23,000 Cr tax notice anyway. Welcome to Delta Corp — the house that built India’s casino empire, but now might lose its shirt.
- Market Cap: ₹2,427 Cr
- Share Price: ₹90.5 (down ~37% YoY)
- Contingent Liabilities: ₹23,262 Cr (no, that’s not a typo)
- Book Value: ₹99.5 (trading below BV!)
- Operating Margin: down from 38% to 26% in FY25
This isn’t just a company — it’s a regulatory thriller with a roulette table on top.
3. Business Model (WTF Do They Even Do?)
Delta Corp earns from:
- Physical Casinos: Goa (Deltin Royale, Deltin Jaqk), Sikkim
- Hospitality: Deltin Suites & Hotels
- Online Gaming (Adda52.com): Real-money skill-based card games
- Upcoming Projects: Deltin Nepal, and some online expansions
Revenue Mix:
- Gaming & Casino: ~80%
- Online Poker/Rummy: ~15%
- Hospitality & Others: ~5%
But here’s the twist — this business lives and dies by regulations, state licenses, and (now) GST notices.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 964 | 925 | 730 |
| EBITDA (₹ Cr) | 366 | 306 | 186 |
| Net Profit (₹ Cr) | 262 | 245 | 249 |
| EPS (₹) | 9.77 | 9.12 | 9.30 |
| ROCE (%) | 16% | 12% | 7% |
| ROE (%) | 9% | 6% | 5.7% |
Narrative:
Topline is shrinking. Margins falling. Still profitable — but slower than a Goa ferry in the off-season.
5. Valuation
- P/E: ~16.3x (TTM)
- Book Value: ₹99.5
- Current Price: ₹90.5
- Fair Value Range: ₹100–₹130
EduVerdict:
Valuation looks tempting, but that ₹23K Cr GST demand could kill this party faster than a power cut in a poker tournament.
6. What’s Cooking – News, Triggers, Drama
- GST Bombshell: ₹23,000+ Cr demand for backdated GST on gross gaming revenue. Think of it as a nuclear audit.
- Online gaming taxed at 28% flat — goodbye Adda52 margins
- Share Price Down 37% YoY
- ROE slipping under 6%
- Net Profit flat despite margin shrinkage = other income magic (₹202 Cr FY25)
Bull Case:
Legal monopoly in physical casinos.
Bear Case:
Govt might tax them into the Stone Age.
7. Balance Sheet
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | 27 | 27 | 27 |
| Reserves | 2,192 | 2,491 | 2,638 |
| Borrowings | 68 | 52 | 35 |
| Total Assets | 2,536 | 2,855 | 2,962 |
Takeaways:
Almost debt-free. But that’s no comfort when contingent liabilities are 9x the market cap.
8. Cash Flow – Sab Number Game Hai
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 154 | 170 | 49 |
| Investing CF | -74 | -114 | +1 |
| Financing CF | -52 | -54 | -61 |
| Net Cash Flow | +28 | +2 | -10 |
Insight:
Operating cash flow halved in FY25. Growth capex is muted. They’re in cash conservation mode — aka the business version of “fold.”
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 16 | 12 | 7 |
| ROE (%) | 9 | 6 | 5.7 |
| Debt/Equity | 0.03 | 0.02 | 0.01 |
| OPM (%) | 38 | 33 | 26 |
| Working Capital Days | 67 | 2 | 339 |
Verdict:
Margins evaporating. ROE is flirting with savings account returns. And 339 working capital days? That’s just inefficient.
10. P&L Breakdown – Show Me the Money
| Metric (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 964 | 925 | 730 |
| EBITDA | 366 | 306 | 186 |
| Net Profit | 262 | 245 | 249 |
| OPM (%) | 38 | 33 | 26 |
| NPM (%) | 27 | 26 | 34 |
Observation:
The NPM spike in FY25 is not due to better ops. It’s because of ₹202 Cr in “other income.” Translation: You won the lottery, not the business.
11. Peer Comparison
| Company | CMP (₹) | OPM (%) | ROCE (%) | P/E | Sales (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|---|---|---|
| Wonderla | 655 | 32 | 8.1 | 38 | 459 | 109 |
| Imagicaa | 67 | 43 | 7.7 | 48 | 410 | 78 |
| Delta Corp | 90.5 | 26 | 7.3 | 16 | 730 | 249 |
| Nicco Parks | 114 | 28.9 | 28 | 24 | 75 | 21 |
Verdict:
Delta has the biggest revenue and profit, but the lowest promoter holding and the biggest regulatory baggage.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun ’22 | Mar ’24 | Jun ’25 |
|---|---|---|---|
| Promoter | 33.31% | 33.26% | 33.66% |
| FIIs | 7.69% → 1.91% → 1.48% | ||
| DIIs | 13.61% → 8.93% → 7.75% | ||
| Public | 45.38% → 55.9% → 57.11% |
Key Point:
FII and DII ran away faster than a card counter at a casino raid. Public now owns 57% — the crowd loves drama.
13. EduInvesting Verdict™
Delta Corp is no ordinary stock — it’s a live poker table. On one side, it has:
- Monopoly in India’s casino biz
- Online poker/rummy legacy (Adda52)
- Debt-free, cash-generating model
But on the other side:
- ₹23K Cr GST bombshell
- Falling margins
- Flat profits that rely on “other income”
- Regulatory hell from both Centre and States
This stock could double if the tax issues vanish.
Or it could halve if they don’t.
Either way, buckle up — the dealer’s still shuffling.
Metadata
– Written by EduInvesting Research Desk | 18 July 2025
– Tags: Delta Corp, Casino Stocks, Online Gaming, GST Liability, Adda52, Goa Gaming, Smallcap India
