Delta Corp Limited adopts Q2 Unaudited Financial Results; Recognizes Significant GST Provisions

Delta Corp Limited adopts Q2 Unaudited Financial Results; Recognizes Significant GST Provisions​

Delta Corp Limited released its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The Board of Directors reviewed and approved the statements during a meeting held on August 11, 2026. The Company also confirmed plans regarding its forthcoming Annual General Meeting (AGM).

The Board decisions detailed include setting Monday, August 17, 2026, as the record date for ascertaining entitlement for the payment of the Final Dividend, provided it is approved by shareholders at the AGM. Furthermore, reflecting a recommendation made on April 22, 2026, the Company is proposing a Final Dividend of ₹ 0.50 per share. The 35th AGM is scheduled to be held on Thursday, September 10, 2026, via Video Conferencing (VC)/Other Audio Visual Means (OAVM).

Operational Updates and Acquisitions​

In operational updates, Delta Corp Limited closed down its operations in "Deltin Denzong Casino, Sikkim" to improve long-term profitability. The Company also completed the acquisition of Shanta Infratech Private Limited and Easymile Parking Solutions & Management Private Limited on April 30, 2026, these acquisitions being accounted for provisionally under Ind AS 103 as purchase price allocation and fair valuation are yet to be finalized.

Standalone Financial Performance Highlights (Q2 FY2026)​

The standalone results showed a net loss for the quarter ended June 30, 2026. The company recognized an exceptional item related to Goods and Services Tax (GST) proceedings following the Supreme Court's judgment on 'value of supply'.

Management assessed the GST liability based on Rule 31C of the CGST Rules and other applicable legal principles, recognizing an aggregate provision of ₹ 200.62 Crores in the unaudited standalone financial results for the quarter. This amount includes interest and penalty related to the judgment concerning 'value of supply'.

The management also noted that while GST authorities raised issues relating to alleged mixed supply in certain components, no provision has been recognized as the company believes it has strong grounds to contest these allegations.

The key metrics from the Standalone Unaudited Financial Results for the quarter ended 30 June, 2026 (in Crores) are summarized below:

Consolidated Financial Performance (Q2 FY2026)​

On a consolidated basis, the Group also reported a net loss for the quarter ended June 30, 2026. The Company recognized an exceptional item relating to GST matters, corresponding to the judgment by the Supreme Court on 'value of supply'. This provision amounted to ₹ 306.73 Crores, which includes interest and penalty.

Similar to the standalone entity, management stated that no adjustment was made for the alleged mixed supply matter concerning certain components, maintaining confidence in their ability to contest these allegations with regulatory authorities.

The consolidated results reflected the impact of external events, including investments in gaming companies being fully impaired to Nil as at March 31, 2026, following the enactment of the Promotion and Regulation of Online Gaming Act, 2025. The Group recognized a fair value loss of ₹ 459.52 Crores in Other Comprehensive Income (OCI) for Q2 FY25-26.

The consolidated financial performance metrics for the quarter ended 30 June, 2026 (in Crores), are presented as follows:

Financial Review and Next Steps​

Independent auditor Walker Chandiok & Co LLP reviewed both the standalone and consolidated unaudited results, concluding that the statements disclosed required information in accordance with relevant regulations.

The Group continued to maintain its commitment to contesting GST matters before appropriate forums, having made prudent provisions based on the assessed liability. The management evaluated the recoverable amounts of cash generating units in light of the recognized GST provision by subsidiaries and determined that no impairment was currently required towards Goodwill or other assets relating to these entities.

DELTACORP Stock Price Movement​

On Tuesday, shares of Delta Corp Limited shed 1.66%, settling at ₹63.27 after slipping from the previous close of ₹63.82. The stock saw a traded volume of 1.19 million shares during the session.