Delta Corp Faces Setback as Q3 Profits Plummet and GST Issues Surface

Delta Corp

January 10, 2023

New Delhi, India


Delta Corp, the online gaming firm, witnessed a 5% drop in its shares following disappointing Q3 FY24 financial results. The company reported a significant decline in net profit and revenue, raising concerns among investors.

Financial Struggles: Net Profit Plunge:

Delta Corp‘s Q3 FY24 net profit plummeted by 59.34% YoY to ₹34.48 crore, compared to ₹84.82 crore in the previous year. The revenue from operations also saw a decline of 15.58% to ₹234.41 crore.

Segment-wise Challenges: Income from gaming operations fell by 18%, online skill gaming revenue dropped by 9%, and only the hospitality business showed a marginal uptick to ₹13.74 crore.

Market Reaction:

Investor confidence took a hit, leading to a 5% decrease in Delta Corp’s share price to ₹143.10 apiece. However, the stock showed signs of recovery, trading with a 2.7% gain at ₹147.50 apiece.

GST Show-Cause Notices:

Adding to the company’s woes, Delta Corp and its subsidiaries received show-cause notices from the Directorate General of GST Intelligence, alleging a total short payment of ₹23,207.22 crore for the period from July 1, 2017, to November 30, 2022.

Legal Actions and Industry Concerns: In response to the notices, Delta Corp and its subsidiaries have taken legal action, filing Writ petitions and obtaining stay orders from respective high courts. The demands, based on gross bet value/gross face value, have raised industry concerns, prompting representations to the government.

Market Outlook: While the initial market reaction was negative, the subsequent recovery suggests a nuanced response. Investors are likely to closely monitor Delta Corp‘s efforts to address the financial challenges and legal issues it currently faces.


Delta Corp faces a dual challenge with its weak Q3 FY24 financial performance and the emergence of GST show-cause notices. The company’s strategic moves, legal actions, and industry representations will be closely watched in the coming days.