Delta Corp's financials hit by gaming act, GST disputes

Delta Corp Limited's board of directors met on October 15, 2025, to approve its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. The company's standalone profit for the period was INR 48.25 Crores, with total comprehensive income at INR (307.19) Crores. Consolidated profit for the period stood at INR 54.56 Crores, with total comprehensive income at INR (347.75) Crores.

A notable event impacting these results is the "Promotion and Regulation of Online Gaming Act, 2025," which became law on August 22, 2025. This act prohibits real-money online gaming, leading to a cumulative reduction of INR 378.34 Crores in fair values of investments through Other Comprehensive Income (OCI) for standalone results and INR 459.52 Crores for consolidated results. The company has not recognized an estimated deferred tax asset of INR 60 Crores related to this diminution.

The company is also facing show-cause notices for alleged short payment of Goods and Service Tax (GST), totaling INR 23,207.30 Crores for both standalone and consolidated results. These demands relate to gross bet value and rake amount. Delta Corp is confident of a favorable outcome in ongoing legal challenges against these tax demands, with the matter currently reserved for judgment by the Supreme Court. No adjustments have been made to the financial results concerning this.