Q3 Results Impact: Delta Corp shares slide 5%, near 52-week low on weak Q3FY25 earnings

Shares of Delta Corp dropped by approximately 5 percent on Tuesday, January 14, following the company's subdued earnings for Q3FY25. The stock touched a day's low of ₹104.95, nearing its 52-week low of ₹104.30 from June 2024. It currently trades 32 percent below its 52-week high of ₹154.95, also recorded in June 2024.

Delta Corp reported a 3.5 percent year-over-year (YoY) increase in net profit, amounting to ₹35.7 crore for the quarter ending December 31, 2024, compared to ₹34.5 crore in the same period last fiscal.

However, its revenue from operations fell by 7.5 percent to ₹194.3 crore in Q3FY25 from ₹210.1 crore in Q3FY24.

On an operational level, earnings before interest, tax, depreciation, and amortization (Ebitda) dropped by 42.4 percent to ₹32.2 crore, down from ₹55.8 crore in the previous year, with the Ebitda margin declining to 16.6 percent from 26.6 percent.

Delta Corp, India’s largest listed casino and gaming company, operates across diverse sectors such as casinos, online gaming, hospitality, and real estate. It manages casinos in Goa, Sikkim, and Nepal, offering offshore casinos, floating hotels, and onshore gaming facilities.

Other Recent Developments

Delta Corp and other online gaming companies recently faced significant GST demand notices amounting to thousands of crores between mid-2023 and early 2024. However, the Supreme Court granted a stay on GST proceedings at the government’s request, citing limitation concerns. This stay prevents tax authorities from demanding payments until final orders are issued.

The issue stems from the GST Council's August 2023 decision to apply a 28 percent GST rate on the full value of bets placed for all online games involving betting, replacing the earlier 18 percent rate applicable until October 1, 2023. This change, coupled with a ₹1.12 lakh crore tax demand against 71 online gaming firms, has sparked ongoing industry challenges and legal disputes.