Indian casino operator Delta Corp reported a consolidated net loss of approximately ₹106 crore (INR1.06 billion) for the second quarter of FY27, compared with a profit of ₹25.1 crore during the same period last year.

The company attributed much of the loss to an exceptional Goods and Services Tax (GST) provision of ₹137 crore, while weaker casino revenue placed additional pressure on its operating performance.

Revenue from operations declined to ₹159.34 crore from ₹182.76 crore in the September 2025 quarter, representing a decrease of approximately 13%.

The October 19 financial results marked Delta Corp’s second consecutive quarterly loss, although the deficit narrowed from ₹212 crore in the preceding quarter.

Casino Revenue and Operating Profit Decline

Delta Corp’s casino gaming segment generated ₹151.28 crore in revenue during the three months ending September 30, 2026, down 13.4% from ₹174.76 crore a year earlier.

Segment profit fell to ₹26.67 crore from ₹31.11 crore, although it improved 33.7% compared with the first quarter of FY27.

Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 28.8% to ₹28.4 crore from ₹39.9 crore.

The EBITDA margin narrowed to 17.9%, compared with 21.8% in Q2 FY26, reflecting reduced operating profitability.

Before exceptional items and tax, the company recorded profit of ₹21.57 crore, a 37.8% decline from ₹34.69 crore in the previous year.

Casino operations also faced capacity constraints during the reporting period.

King Casino remained closed throughout the first half of FY27 as Delta Corp prepared to introduce a replacement vessel.

The company must secure the necessary regulatory approvals and certificates before seeking permission from the Bombay High Court to begin operations with the new vessel.

The reopening therefore remains dependent on completing the required approval process.

GST Provision Accounts for Quarterly Loss

Delta Corp recognised an exceptional GST-related charge of ₹137 crore during the September quarter, bringing its total provision for the first six months to approximately ₹444 crore, including interest.

The charges follow the Supreme Court’s May 27, 2026 judgment concerning the taxation of gambling transactions and subsequent adjudication orders.

The disputed liabilities relate to casino transactions between July 2017 and September 2023, alongside mixed-supply assessments covering the period through September 2025.

Delta Corp said it made the provisions on a prudence basis while retaining the right to challenge the demands.

The company believes it has ‘strong grounds to contest’ the entire mixed-supply demand and interest assessed under Rule 31C.

Following the quarter’s end, Delta Corp paid approximately ₹80.97 crore in GST principal under an adjudication order covering July 2017 to March 2022.

The continuing tax dispute remains a significant factor in the company’s reported earnings, with the recognised provisions substantially affecting its consolidated financial results.

Hospitality Business Faces Monsoon Disruption

Delta Corp’s hospitality division reported revenue of ₹7.85 crore, down approximately 5.5% year-on-year.

The segment’s loss widened to ₹4.54 crore from ₹2.74 crore in the corresponding period of FY26.

Heavy monsoon rainfall caused flooding at The Deltin, Daman, forcing the hotel to suspend operations for 37 days. The property resumed normal business on August 29.

For the first six months of FY27, Delta Corp recorded a consolidated net loss of ₹318.83 crore, reversing a profit of ₹54.56 crore a year earlier.

Reported revenue for the half-year declined to ₹342.19 crore from ₹386.52 crore, while sales fell to ₹302.65 crore from ₹346.62 crore.

The second-quarter result translated into a basic and diluted loss per share of ₹3.97, compared with earnings of ₹0.94 per share in the previous year.

As reported by NDTV Profit, Delta Corp shares closed at ₹76.90 on October 19, falling approximately 5.1% during the trading session.

The company’s performance remains affected by outstanding GST liabilities and softer casino earnings, while the planned replacement gaming vessel awaits regulatory and court approvals.