India’s leading listed casino and gaming firm Delta Corp reported Q1 FY26 earnings, demonstrating resilience and growth in an otherwise tough regulatory backdrop. The company posted a significant 36% year-over-year increase in net profit, rising to ₹29.4 crore for the quarter ended June 30, 2025, versus ₹21.6 crore in the same quarter last year. This strong bottom-line expansion was supported by steady revenue figures and careful cost control, although it was partially countered by increased litigation-related costs.
Revenue and Segment Performance
Delta Corp’s Q1 FY26 consolidated revenue inched higher modestly to ₹184.7 crore, from ₹178 crore last year. Its core casino gaming business continued to be the major contributor, growing its revenue by 3.8% to ₹172.71 crore. Its hospitality business, on the other hand, saw a decrease of about 2.8%. The revenue pattern, while positive, indicates the normalization of the Indian gaming industry, particularly after the pandemic.
Margins and Profitability
While profit after taxes and net profit have been very robust, the earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 16.2% year-on-year to ₹39.6 crore as the margins contracted from 26.6% in Q1 FY25 to 21.4% in Q1 FY26. This margin pressure came largely due to a sharp increase in “other expenses,” which rose 21% year-on-year to ₹60.2 crore. The expansion was mostly attributed to increased legal and compliance expenses since the company continues to grapple with a complicated setting in light of the ongoing Goods and Services Tax (GST) litigation in the Supreme Court.
GST Litigation and Regulatory Update
The Indian gaming sector has been under the regulatory lens, with Delta Corp and several other companies receiving show-cause notices over GST payments. In September 2023, the Directorate General of GST Intelligence served a show cause notice on Delta Corp and its subsidiaries, seeking huge arrears in taxes. Delta Corp managed to get a stay order, with ancillary cases now clubbed together before the Supreme Court. This has resulted in an increase in legal expenses for Delta Corp, having a direct impact on quarterly profitability.
Market Strategy and Outlook
In Q1, Delta Corp continued to diversify, and its subsidiary acquired a 107-room hotel property in Alibaug, Maharashtra—strengthening its hospitality vertical and non-gaming asset base. The company also continues to make investments in its online gaming operations, as seen in recent deals to expand its digital gaming footprint.
Delta Corp continues to be India’s unchallenged casino gaming champion, banking on the power of its brand and operating presence in Goa and Sikkim. Management has emphasized a conservative but optimistic view with anticipation of a more positive regulatory environment in the future and ongoing gradual growth in both traditional and online gaming spaces.
Conclusion
Delta Corp’s Q1 FY26 performance captures its capacity to maintain growth in a difficult environment. Though margins have taken a hit from increasing costs and litigation, high profit growth and constant strategic expansions are indicative of strong fundamentals. With GST issues unfolding and expansion plans coming of age, subsequent quarters will prove crucial in determining the company’s direction.
