Delta Corp shares declined as much as 17.76% to hit an intraday low of ₹66.60 on the BSE on Friday, marking a sharp reversal from the previous session's 17% surge. The stock had soared over 17% following the Supreme Court's ruling on Wednesday, marking a dramatic turnaround from the previous session's 16% decline. The Supreme Court's decision to uphold the government's 28% GST levy on online gaming companies has intensified market pressure on real money gaming firms, with the stock having corrected 25.31% in the past year versus a 4% decline in the Nifty 50 index. The stock had opened at ₹69.12 and touched a high of ₹75.76 on May 29, 2026, with 34,07,936 shares changing hands according to Dion Global data.
On Wednesday, the Supreme Court upheld the Centre's decision to retrospectively levy 28% goods and services tax (GST) on the full face value of bets placed through RMG platforms, observing that such imposition was constitutionally valid. The court ruled that online gaming platforms cannot be treated merely as intermediaries and observed that such activities amount to actionable claims under GST law. In its ruling, the top court also upheld the validity of laws enacted by the Tamil Nadu and Karnataka governments which banned online games played for stakes, including games of skill such as rummy and poker. The Supreme Court had allowed a petition of the Centre and transferred to itself pleas challenging the imposition of 28% GST on e-gaming firms from nine high courts for an authoritative pronouncement. The government had amended the GST law, making it mandatory for overseas online gaming companies to register in India from October 1, 2023.
In an exchange filing, Delta Corp stated that a copy of the Supreme Court's order was not yet available, but based on limited information, the company believes that the basis of GST computation adopted by it since October 2023 would now apply retrospectively for the period between July 2017 and September 2023. The company believes this interpretation would be favourable for its business, as the levy of GST would accordingly not be on the amount of gross bet value of all games played during the relevant period (which had the effect of notionally multiplying the revenue and consequently the GST payable on it), but would be on the amount received from players for the chips sold to them. The ruling comes as a setback for online gaming companies that had challenged the retrospective tax demand, arguing that treating online gaming as gambling under GST law contradicted judicial precedents established by the Supreme Court and various High Courts over the years.
Recently, Delta Corp reported a sharp decline in earnings for Q4 FY26, with consolidated net profit tumbling 90% to ₹16.45 crore on a 11.72% decline in revenue from operations to ₹161.25 crore compared to Q4 FY25. The company is engaged in the casino (live, electronic, and online) gaming industry in India and operates in diversified segments including casino gaming, online gaming, hospitality, and real estate. According to court submissions, cumulative tax demands raised through show-cause notices against online gaming companies amount to nearly ₹91,684.81 crore. Including casinos, the total tax demand rises to around ₹1.08 lakh crore, with total tax demands against real money gaming companies having exceeded ₹1 trillion and potentially doubling once penalties and interest are included. Industry executives said companies would struggle to meet even 20 per cent of the overall liability, while attaching founders' and executives' personal assets would raise recoveries by only a few percentage points.
The GST demands would force companies to wind down operations, cut jobs and abandon diversification efforts into areas such as micro-drama and casual gaming, executives said. GST authorities had issued show cause notices to online gaming companies for tax evasion in October 2023, and gaming companies had moved various high courts against such GST demands, contesting the claims of revenue authorities. The Supreme Court's decision has effectively validated the government's retrospective taxation policy, creating immediate market pressure on companies like Delta Corp that operate in the real money gaming sector. The ruling has effectively ended the legal challenges by gaming firms and confirmed the constitutional validity of the retrospective GST levy, with the company's interpretation suggesting a more favourable treatment for its business operations. The stock's current performance reflects investor concerns about the Supreme Court's ruling, though the company continues to face operational challenges from the GST regime.
