Delta Corp Q2 FY26 results: net profit up 102.2% to ₹54.56 crore, revenue up 95.5%

How did Delta Corp perform in Q2 FY26?

Delta Corp reported consolidated revenue of ₹366.93 crore in Q2 FY26, against ₹187.65 crore in Q2 FY25 and ₹184.17 crore in Q1 FY26. The corresponding increases were 95.5% year on year and 99.2% from the previous quarter. EBITDA was ₹78.75 crore, compared with ₹33.79 crore a year earlier and ₹39.10 crore in the previous quarter.

The EBITDA margin was 21.5%, up 3.5 percentage points from 18.0% in Q2 FY25 and 0.3 percentage points from 21.2% in Q1 FY26. Profit before tax was ₹72.26 crore, compared with ₹36.93 crore and ₹37.57 crore, respectively. Net profit was ₹54.56 crore, while basic EPS was ₹2.04.

The reported figures are consolidated. On a standalone basis, revenue was ₹131.05 crore and profit for the period was ₹22.41 crore, compared with ₹43.87 crore in the year-ago quarter.

What changed in Delta Corp's costs and profit?

Total expenses were ₹314.26 crore in Q2 FY26, up ₹145.02 crore from ₹169.24 crore in Q2 FY25. Cost of materials rose by ₹13.30 crore, employee cost by ₹40.65 crore, finance costs by ₹0.49 crore, depreciation by ₹10.21 crore and other expenses by ₹79.84 crore. Other income increased by ₹1.07 crore, from ₹18.52 crore to ₹19.59 crore.

There was no exceptional item in either Q2 FY26 or Q2 FY25. Tax expense rose by ₹8.44 crore to ₹19.05 crore, from ₹10.61 crore. The filing did not state reasons for the year-on-year changes in the cost lines or other income.

Against Q1 FY26, total expenses were higher by ₹155.99 crore, while other income rose by ₹7.92 crore and tax expense increased by ₹10.56 crore. There was no exceptional item in the previous quarter either.

What do the balance sheet and cash flow show?

At 30 September 2025, total assets were ₹2578.92 crore, compared with ₹2962.23 crore at 31 March 2025. Total equity was ₹2283.34 crore, compared with ₹2664.56 crore, while borrowings remained at ₹0.00 crore. Cash was ₹76.47 crore, compared with ₹89.35 crore at the previous balance sheet date.

Inventories were ₹18.73 crore, against ₹19.07 crore at 31 March 2025. Trade receivables were ₹3.51 crore, compared with ₹5.35 crore, and trade payables were ₹26.72 crore, compared with ₹22.77 crore.

For H1 FY26, operating cash flow was ₹144.81 crore, compared with ₹85.79 crore in H1 FY25. Investing cash flow was negative ₹109.71 crore, against negative ₹50.78 crore, while financing cash flow was negative ₹48.29 crore, against negative ₹46.1 crore. Capital expenditure was ₹108.13 crore, compared with ₹76.2 crore.

How has Delta Corp done over the last 8 quarters?

Revenue rose in each of the last two quarters on a year-on-year basis and reached ₹366.93 crore in Q2 FY26, its highest level in the reported series and above the ₹231.74 crore recorded in Q3 FY24. Profit also rose year on year in each of the last four quarters, reaching ₹54.56 crore in Q2 FY26, above ₹35.73 crore in Q3 FY25.

The EBITDA margin was 21.5% in Q2 FY26, above 18.0% in Q2 FY25 and 21.2% in Q1 FY26. Its reported low was 16.5% in Q3 FY25, while the high was 24.1% in Q3 FY24. Revenue and profit have moved higher from Q1 FY26 to Q2 FY26.

Which businesses drove the quarter?

The Casino Gaming Division reported revenue of ₹347.47 crore, up 96.1% from ₹177.23 crore in the year-ago quarter. Its EBIT was ₹58.41 crore, compared with ₹37.13 crore, and the EBIT margin was 16.8%.

Hospitality Services reported revenue of ₹20.31 crore and EBIT of negative ₹2.6 crore, with an EBIT margin of negative 12.8%. The filing excerpt provided no year-ago revenue, EBIT or growth figures for this segment.

What did the auditors point out?

The auditors included an emphasis of matter concerning show-cause notices received by the holding company, two subsidiary companies and an erstwhile associate for alleged short payment of GST aggregating ¥ 23,207.30 Crores for 1 July 2017 to 30 November 2022. The excerpt states that, based on legal assessment, management is confident of a favourable outcome and that no adjustments were made to the financial results.

The auditors drew attention to the Promotion and Regulation of Online Gaming Act, 2025, which prohibits online gaming businesses involving real-money stakes. The excerpt states that this resulted in ¥ 459.52 Crores recorded as a cumulative reduction in the fair values of the Group’s investments in certain entities carrying on that business. The auditors stated: “Our conclusion is not modified in respect of this matter.”

How did Delta Corp shares react?

After the filing, Delta Corp’s shares were down 0.5% at both five and 15 minutes, and down 0.7% at 30 minutes. On the reaction day, the stock closed 0.4% below the previous close. By the next day’s close, it was down 1.0% from the pre-results close, and by five sessions, it was down 1.7%.

The Leisure Services industry median was up 0.3% on the reaction day, unchanged on the next day and up 0.4% after five sessions. Delta Corp therefore underperformed the industry by 0.7 percentage points on the reaction day, 1.0 percentage point by the next day and 2.1 percentage points after five sessions. Its earlier reaction-day moves were negative 2.1% on 4 August 2025, positive 0.1% on 13 January 2025 and negative 1.1% on 6 November 2024.