Shares of Delta Corp Ltd. experienced a sharp downturn in early trading on May 29, 2026, falling 16.04 percent to an intraday low of Rs 68. The significant decline was triggered by two major developments: the Supreme Court's decision to uphold a 28 percent Goods and Services Tax (GST) on online gaming companies retrospectively, and the company's subdued financial performance for the March 2026 quarter.
Supreme Court Upholds Retrospective 28% GST on Online Gaming
The Supreme Court's ruling, which validated the constitutional legality of the 28 percent GST on online gaming, has far-reaching implications for the sector, potentially leading to tax demands exceeding Rs 1 lakh crore on these firms. Sudipta Bhattacharjee, a Partner at Khaitan & Co, who represented several online gaming and casino companies in the apex court, noted that two separate judgments were pronounced.
One judgment addressed appeals filed by state governments against High Court decisions in Tamil Nadu, Karnataka, and Kerala, which had quashed state legislations prohibiting or restricting online money gaming. This judgment upheld the validity of these state laws by distinguishing 'betting' from 'gambling'. The second judgment concerned the broader GST issues, impacting the entire sector with potential liabilities exceeding Rs 2.5 lakh crore.
Delta Corp's Q4 FY26 Earnings Show Steep Decline
Compounding the market reaction to the GST ruling was Delta Corp's latest financial report. For the March 2026 quarter (Q4 FY26), the company posted a consolidated net profit of Rs 16.45 crore, marking a steep 90 percent year-on-year (YoY) decline. Revenue from operations also fell by 11.72 percent YoY to Rs 161.25 crore during the same period. The company also reported an exceptional loss of Rs 5.51 crore.
Despite the significant annual drop, the company's performance showed a marginal improvement on a sequential (quarter-on-quarter) basis. Revenue edged up from Rs 160.28 crore in the December 2025 quarter, and net profit increased by 15.19 percent from Rs 14.28 crore. Total expenses for Q4 FY26 decreased by 3.16 percent to Rs 149.19 crore compared to the corresponding period last year.
Impact on India's Gaming and Hospitality Sector
Delta Corp is India's only publicly listed company operating in the regulated gaming and hospitality segment. Its operations include offshore and land-based casinos in Goa and Sikkim, as well as interests in luxury hospitality and online skill gaming businesses. The Supreme Court's decision and Delta Corp's earnings also affected other stocks in the online gaming space, with companies like Nazara Technologies Ltd and OnMobile Global Ltd also trading lower during the opening session.