Delta Corp reports significant profit decline for Q2 & H1 FY26, impacted by online gaming ban and GST notices
Delta Corp reported a substantial decline in Q2 and H1 FY26 profits. This was primarily due to the impact of the Online Gaming Act, 2025, leading to significant impairment, and ongoing large GST show cause notices.
The impact is high due to the considerable decline in profitability, the massive potential liability from the GST demands (₹23,207.30 crore consolidated), and the direct adverse effect of the Online Gaming Act, 2025, which necessitated a significant fair value reduction of online gaming investments, fundamentally altering a part of the company's business outlook.
The negative sentiment is driven by a significant decline in both standalone and consolidated profits for the quarter and half year, coupled with the substantial financial impact from the online gaming ban, which led to a large impairment, and the ongoing uncertainty and magnitude of the GST show-cause notices.
* Delta Corp Limited's Board of Directors approved the un-audited Standalone and Consolidated Financial Results for the quarter and half year ended 30 September 2025, during a meeting held on 15 October 2025. * Standalone Performance (Q2 FY26 vs Q2 FY25): * Net Sales / Revenue from Operations: ₹131.05 crore (down from ₹145.78 crore). * Profit for the Period: ₹24.11 crore (down from ₹43.87 crore). * Basic EPS: ₹0.84 (down from ₹1.64). * Consolidated Performance (Q2 FY26 vs Q2 FY25): * Net Sales / Revenue from Operations from continuing operations: ₹184.17 crore (up from ₹182.09 crore). * Profit for the Period from continuing operations: ₹25.10 crore (down from ₹29.46 crore). * Basic EPS from continuing operations: ₹0.94 (down from ₹1.10). * Significant Regulatory and Legal Matters: * The company and its subsidiaries received show cause notices for alleged Goods and Service Tax (GST) short payment aggregating ₹28,207.30 crore (standalone) and ₹23,207.30 crore (consolidated) for the period from 1 July 2017 to 30 November 2022. The management is confident of a favorable outcome, and the matter is reserved for judgment by the Supreme Court. * The Promotion and Regulation of Online Gaming Act, 2025, enacted on 22 August 2025, prohibits online games involving real-money stakes. This led to a cumulative reduction in the fair value of investments in online gaming companies by ₹378.34 crore (standalone) and ₹459.52 crore (consolidated) through Other Comprehensive Income (OCI) for the period ended 30 September 2025. * A Revised Composite Scheme of Arrangement, approved by the Board on 6 December 2024 and effective from 1 April 2025, is pending approval from the NCLT Mumbai Bench.
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Delta Corp Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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