Synopsis: Shares of a gaming firm fell after receiving a ₹1,752.38 crore tax notice, exceeding its ₹1,452 crore market cap. Despite legal relief from past cases, concerns remain. The stock showed volatility, while operating metrics weakened, with margins dropping from 26% to 14% over the year.
The shares of the prominent gaming company in India plummeted up to 3.4 percent in today’s trading session after the company and its subsidiary, Highstreet Cruises and Entertainment, received tax notices worth Rs 1,752.38 crore, which exceeded its market capitalization.
With a market capitalization of Rs 1,452.12 crore, the shares of Delta Corp Ltd were trading at Rs 54.23 per share, increasing around 1.54 percent as compared to the previous closing price of Rs 55.08 apiece.
Tax Notice
The shares of Delta Corp Ltd have seen bearish movement after the company disclosed receiving GST notices worth over ₹1,750 crore for FY23, including interest and penalties. While the demand is significant, the company clarified that it is based on gross bets rather than gaming revenue, an issue already contested across the industry.
Moreover, the company and its subsidiary have highlighted that similar past demands from July 2017 to March 2022 are currently stayed by the Supreme Court. This provides some relief and legal backing, suggesting the final liability remains uncertain. Hence, investors appear to be reacting positively, expecting a favorable resolution or limited financial impact ahead.
The company’s financial performance shows notable pressure, with revenue declining 14% from ₹187 crore to ₹160 crore. More concerning is the sharp 61% drop in net profit to ₹14 crore, indicating margin stress. This suggests rising costs or weaker demand, raising concerns about short-term profitability and operational efficiency.
Over the past year, the company’s operating performance has weakened significantly. Operating profit declined from ₹49 crore in Dec 2024 to ₹22 crore in Dec 2025, reflecting pressure on core earnings. Similarly, OPM dropped sharply from 26% to 14%, indicating margin compression, possibly due to rising costs or lower operating efficiency impacting overall profitability.
Delta Corp Ltd is India’s leading casino and gaming company, primarily operating offshore and onshore casinos in Goa and Sikkim. It also has a presence in online gaming. The company focuses on entertainment and hospitality, leveraging tourism-driven demand while navigating regulatory challenges in the evolving gaming industry landscape.
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