Delta Corp’s GST burden drives US$11.2m second quarter loss
A ₹136.92 crore (US$14.4m) exceptional GST charge weighed on earnings as revenue fell both year-on-year and from the previous quarter.
India.- The Indian casino operator Delta Corp has reported a consolidated net loss of ₹106.41 crore (US$11.2m) for the quarter ended September 30, 2026. That compares with a net profit of ₹25.10 crore (US$2.64m) a year earlier.
Revenue from operations fell 12.8 per cent year-on-year to ₹159.34 crore (US$16.8m), down from ₹168.55 crore (US$17.7m) in the previous quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 27.5 per cent year-on-year to ₹29 crore (US$3.05m), while the EBITDA margin narrowed from 21.8 to 18 per cent. However, the net loss more than halved from ₹212.42 crore (US$22.4m) in the preceding quarter to ₹106.41 crore (US$11.2m).
The company logged an exceptional charge of ₹136.92 crore (US$14.4m) for GST liabilities, which more than offset the ₹21.57 crore (US$2.27m) profit recorded before exceptional items and tax. This brought Delta Corp’s cumulative GST provision for the first half of FY27 to ₹443.65 crore (US$46.7m), including ₹306.73 crore (US$32.3m) recognised in the June quarter.
The tax provisions relate to demands arising from alleged short-payment of GST on casino transactions and supplies involving multiple goods or services. Delta Corp said it calculated the amount after considering adjudication orders and the principles set out in the Supreme Court’s May 27, 2026, judgment on GST applicability to online gaming, betting, gambling and casino transactions.
The company said the provision was made as a precaution and that it reserved the right to challenge the demands before the appropriate authorities and legal forums. Based on legal advice and management’s assessment, Delta Corp believes it has grounds to contest the demands relating to mixed supplies and the interest calculated under Rule 31C of the Central Goods and Services Tax Rules.
Delta Corp’s hospitality business was also affected by heavy monsoon rains and flooding in Daman. The Deltin hotel suspended operations for 37 days before reopening on August 29.
