💰 Financial Performance

Revenue Growth by Segment

Casino Gaming and Hospitality segments are the primary drivers; however, Standalone Net Profit Before Tax for H1 FY26 fell to INR 65.92 Cr from INR 111.39 Cr in H1 FY25, representing a 40.8% YoY decline. Online gaming (Deltatech Gaming) is now classified under discontinued operations following a stake sale.

Geographic Revenue Split

Not disclosed in available documents, though operations are primarily concentrated in Goa and Sikkim, India.

Profitability Margins

Net Profit Before Tax margin for H1 FY26 was impacted by a fair value reduction of INR 378.34 Cr in investee companies. Standalone EPS for Q2 FY26 dropped to 0.84 from 1.64 YoY, a 48.8% decrease.

EBITDA Margin

EBITDA margin is expected to stabilize at 35% to 36%, a decline from the historical 41% level (approx. 500-600 bps hit) primarily due to the 28% GST impact on entry/face value.

Capital Expenditure

The company is investing in a new casino ship and a new hotel to complement gaming operations. It is also phasing its Integrated Resort project, starting with a water theme park to manage cash flows.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company maintains healthy reserves and a comfortable financial position with Total Equity of INR 2,206.28 Cr as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Promotional chips (used to offset GST impact for players), Food & Beverage supplies, and consumables for hospitality operations.

Import Sources

Primarily sourced within India (Maharashtra, Goa) for hospitality and casino operations.

Capacity Expansion

Currently running at nearly 100% capacity; planned expansion includes a new larger casino vessel and a new hotel to increase gaming positions and room inventory.

Raw Material Costs

Promotional chips are issued in lieu of GST to maintain player value, effectively acting as a revenue-linked cost that reduces the net EBITDA margin by 6-7%.

Manufacturing Efficiency

Capacity utilization is near full capacity; efficiency is measured by GGR per player and demographic optimization.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be driven by the deployment of a new casino ship and hotel, which are expected to provide substantial cost savings and direct profit translation. The company is also restructuring via a Revised Composite Scheme of Arrangement to streamline the gaming and hospitality businesses.

Products & Services

Casino gaming services (live and electronic), hotel stays, food and beverage services, and online gaming (poker and rummy via associate company).

Brand Portfolio

Deltin, Deltatech Gaming, Adda52, Peninsula Land (investment).

New Products/Services

Launch of a water theme park as the first phase of the Integrated Resort project; new casino vessel expected to increase capacity.

Market Expansion

Focus on optimizing the Goa gaming market and expanding the hospitality footprint to support gaming traffic.

Market Share & Ranking

Delta Corp is a dominant leader in the organized Indian offshore casino market.

Strategic Alliances

Investment in Peninsula Land for real estate value addition; 49% associate stake in Deltatech Gaming Limited.

🌍 External Factors

Industry Trends

The gaming industry is facing a 'shakeout' due to the 28% GST regime; Delta Corp expects to benefit from industry consolidation as smaller players exit.

Competitive Landscape

Key competitors include other licensed offshore and onshore casinos in Goa and Sikkim, and unregulated online gaming platforms.

Competitive Moat

Durable moat through limited offshore casino licenses in Goa and high entry barriers due to regulatory complexity and capital intensity of casino vessels.

Macro Economic Sensitivity

Highly sensitive to discretionary consumer spending and tourism trends in Goa and Sikkim.

Consumer Behavior

Shift toward integrated entertainment (gaming + theme parks + luxury stay) rather than pure gaming.

Geopolitical Risks

Minimal, as operations are domestic; however, state-level regulatory changes in Goa are a primary risk.

⚖️ Regulatory & Governance

Industry Regulations

Strict licensing requirements for offshore casinos; the Gaming Act recently prohibited the sole line of business for certain investee companies, causing a total revenue halt.

Taxation Policy Impact

28% GST on the face value of entry/chips; Income Tax of INR 25.10 Cr for H1 FY26.

Legal Contingencies

The company recorded a INR 378.34 Cr reduction in the fair value of investee companies due to the Gaming Act's impact. A Revised Composite Scheme of Arrangement is pending approval from the NCLT Mumbai Bench.

⚠️ Risk Analysis

Key Uncertainties

Regulatory risk regarding GST implementation and potential further changes to the Gaming Act which could impact the remaining 49% stake in Deltatech Gaming.

Geographic Concentration Risk

High concentration in Goa; any local policy change regarding offshore casinos would significantly impact the majority of revenue.

Third Party Dependencies

Dependency on the Goa government for license renewals and the NCLT for the approval of the restructuring scheme.

Technology Obsolescence Risk

Online gaming segment (DGL) faces high competition and regulatory pressure, leading to its reclassification as an associate rather than a subsidiary.

Credit & Counterparty Risk

Not disclosed in available documents; primarily a cash-and-carry retail business.