India’s only listed gaming company, Delta Corp, has reported a consolidated net loss of Rs 106.4 crore (US$11.2 million) for the three months to 30 September 2026 after recognizing a provision for disputed good and services tax (GST) liabilities.
While the company recorded a profit before exceptional items and tax of Rs 21.6 crore (US$2.3 million), it also recognized an Rs 136.9 crore (US$14.4 million) provision in relation to multiple show cause notices it had previously received for alleged historical GST underpayments on casino transactions. The consolidated GST provision since the start of the year now stands at Rs 443.7 crore (US$46.8 million).
Delta Corp said it maintains its legal position that it has strong grounds to challenge significant portions of the demands – even in the face of a Supreme Court ruling in May that substantially reduced the company’s GST liabilities but did not remove them entirely.
Instead, the operator said the outstanding proceedings must now be adjudicated in accordance with the principles established by the Supreme Court and the applicable valuation provisions under the GST rules. As such, the existing GST provisions have been made “on a prudent basis” with Delta Corp insisting it reserves its right to contest the liabilities before the appropriate authorities and forums.
The GST dispute dates back to September 2023, when Delta Corp and two subsidiaries received show cause notices from the Directorate General of GST Intelligence alleging short payments totalling Rs 16,823 crore (US$1.78 billion) for the period from 1 July 2017 to 31 March 2022.
Deltatech Gaming Limited, the company’s former associate, separately received a show cause notice in October 2023 alleging GST underpayments of Rs 6,384 crore (US$674 million) for the period from July 2017 to November 2022.
Further show cause notices issued in March and September 2026 alleged short payments totalling Rs 1,884 crore (US$199 million) for the period from April 2022 to March 2023.
Delta Corp had challenged the earlier notices in the relevant High Courts and obtained stays. The Union of India subsequently sought the transfer of similar industry-wide proceedings to the Supreme Court.
Following the Supreme Court’s May 2026 judgment, adjudication orders covering the period from July 2017 to March 2022 determined the group’s GST liability on casino transactions at Rs 151.2 crore (US$16.0 million). A separate liability of Rs 125.3 crore (US$13.2 million) was determined in relation to mixed supplies.
Delta Corp has calculated its consolidated provision, including interest, for casino transactions covering July 2017 to September 2023 and mixed supplies covering July 2017 to September 2025.
The company subsequently paid Rs 81.0 crore (US$8.5 million) in accordance with the adjudication order covering July 2017 to March 2022. The payment was made after the reporting date.
Separately, Delta Corp said it had reassessed its obligations under the agreement covering the sale of its stake in Deltatech Gaming to Head Digital Works.
The company concluded that, in light of the Supreme Court’s 27 May 2026 judgment, it would no longer be required to indemnify the buyer against GST liabilities relating to the alleged short payment of tax.
As reported by IAG earlier this week, the Supreme Court ruling also reduced the GST demands against at least three major online gaming operators by a combined Rs 52,915 crore (US$5.56 billion).
Delta Corp’s standalone financial statements for the September 2026 quarter show income from casino gaming of Rs 119.1 crore (US$12.6 million), improved from Rs 116.9 crore (US$12.3 million) in the June quarter but lower than the Rs 122.7 crore (US$12.9 million) reported a year earlier.
The quarter was impacted by weather events, with Delta Corp disclosing that operations at The Deltin hotel in Daman were suspended for 37 days following heavy monsoon flooding in July. Normal operations resumed on 29 August 2026.
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