Shares of Delta Corp Ltd. saw a significant rebound on Wednesday, climbing 11.72% to reach Rs 71.33. This surge halted a sharp three-session decline that had put the stock under pressure after the Supreme Court upheld the constitutional validity of a 28% Goods and Services Tax (GST) on online gaming companies.
Delta Corp, India's sole publicly listed entity in the regulated gaming and hospitality sector, stated that the Supreme Court's order pertains to show-cause notices issued for short payment of GST. The company believes the ruling implies that its adopted method for GST computation since October 2023 will apply retrospectively from July 2017 to September 2023.
Favorable GST Outcome Anticipated
According to Delta Corp, this retrospective application would be a favorable development. It means the GST levy would be calculated on the amount received from players for chips sold, rather than on the gross bet value of all games played. The latter method had the effect of notionally multiplying revenue and, consequently, the GST payable. The company has committed to providing further updates upon a detailed review of the Supreme Court's order.
Q4 Financials and Technical Outlook
The company recently reported a subdued financial performance for the March 2025 quarter. Consolidated net profit for Q4 FY26 declined by a steep 90% year-on-year to Rs 16.45 crore, with revenue from operations falling 11.72% to Rs 161.25 crore. Delta Corp also noted an exceptional loss of Rs 5.51 crore during the quarter. However, on a sequential basis, performance showed marginal improvement, with revenue slightly up from the December 2025 quarter and net profit increasing by 15.19%.
Expert Technical Views
- Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, highlighted a recent sharp rejection from the Rs 80 level, indicating a deteriorating technical structure. He suggested that a sustained move above Rs 73, followed by a breakout beyond Rs 80, would be necessary to revive buying interest.
- AR Ramachandran, Sebi-registered research analyst at Tips2trades, and Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, noted the stock's highly volatile nature, identifying Rs 62 as a key support level.
Delta Corp operates offshore and land-based casinos in Goa and Sikkim, alongside interests in luxury hospitality and online skill gaming businesses.