Delta Corp Ltd Management Discussions

ECONOMY OVERVIEW

Global Economy Overview

Global economy grew 3.4% in 2025 at same level as 2024, amidst abating trade tensions with occasional flare-ups and elevated uncertainty. The global economy remained remarkably resilient though policy uncertainty continued to persist. Global inflation reduced from 5.8% in 2024 to 4.1% in 2025.

World Economic Output (%)

	2023	2024	2025	2026	2027
Global economy	3.3	3.4	3.4	3.1	3.2
Advanced economies	1.7	1.8	1.9	1.8	1.7
Emerging markets and developing economies	4.4	4.5	4.4	3.9	4.2

Global growth is facing challenges with the outbreak of war in the Middle East. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Fluctuating trade policies continue to add uncertainty, though balanced by surging investment in technology, including artificial intelligence (AI), especially in North America and Asia than in other regions. Elevated public debt and eroding institutional credibility further heighten vulnerabilities. At the same time, activity could be lifted if productivity gains from AI materialise more rapidly or trade tensions ease on a sustained basis.

Overall global growth is expected at 3.1% in 2026 and 3.2% in 2027, assuming that the conflict remains limited in duration and scope. A longer or broader conflict, worsening geopolitical fragmentation, a reassessment of expectations surrounding artificial intelligence driven productivity, or renewed trade tensions could significantly weaken growth and destabilise financial markets. Fostering adaptability, maintaining credible policy frameworks, and reinforcing international cooperation are essential to navigating the current shock while preparing for future disruptions in an increasingly uncertain global environment.

(Source: IMF World Economic Outlook, April 2026)

Indian Economy Overview

According to the provisional estimates (revised base year 2022-23), Indias Gross Domestic Product growth is estimated at 7.7% in FY 2025-26. The sustained growth momentum is primarily attributable to robust domestic consumption and investment especially in the second and third quarters of the fiscal year. For three consecutive years, manufacturing sector has been the major driver in contributing to the resilient performance of the economy, after rebasing. This sector has attained double digit growth rates in FY 2023-24 and FY 2025-26. Secondary and tertiary sectors have boosted the performance of the economy registering 8.8% and 9.3% growth rate, respectively, in FY_2025-26. CPI inflation averaged around 2%. The Primary sector has observed 3.2% growth rate mainly driven by agriculture and fishery sectors.

FY 2025-26 was filled with challenges from foreign trade partners amidst heightened uncertainty in global trade, imposition of high and punitive tariffs by key partners. Due to the war involving the US, Israel and Iran, Indias exports to West Asia fell 57.95% in March 2026. Total exports (merchandise and services) were recorded at an all-time high of US$ 863 billion in financial year, up 4.6% YoY sustained by steady performance across sectors. The growth was led by 8.7% surge in services exports led by the expanding global demand for services such as IT, business solutions, and professional expertise, and 0.93% growth in merchandise exports. The US, UAE, China, the Netherlands, and the UK remained key export destinations.

Looking ahead, Indias export outlook is supported by the conclusion of the Free Trade Agreement with the European Union in Q4 FY 2025-26 and the interim bilateral trade deal with the United States, both expected to strengthen trade and economic cooperation. Continued focus on domestic manufacturing, GST rationalisation, and simplification of compliance requirements further supported corporate India.

In FY 2025-26, the Reserve Bank of India (RBI) eased its monetary stance reducing the repo rate to 5.50% in October 2025 and then down to 5.25% in December 2025, with a view to support growth amid moderating inflation, further keeping it stable to support domestic demand while managing external risks, focusing on maintaining stability amid global uncertainties.

Indias GDP Growth (%)

Considering the current Middle East conflict, GDP growth for FY 2026-27 is projected at 6.6%, with heightened uncertainty regarding crude oil prices, overall energy supply, and disruption of supply chains putting pressure on input costs and raw material availability. Full clarity will emerge gradually depending on the intensity and duration of the conflict, and the burden-sharing approach among the stakeholders. Deficient south-west monsoon is expected to impact agricultural activity and rural demand. Sustained momentum in services, continuing impact of GST rationalisation, and broadly stable employment conditions work in favour of urban consumption. Strong capacity utilisation, sustained credit flows from bank and non-bank sources, and the governments capex are expected to support investment activity. While weak global demand and elevated freight and insurance costs are headwinds for merchandise exports, services exports are expected to remain steady.

(Source: MoSPI; NSO; Press Releases - Reserve Bank of India)

INDUSTRY OVERVIEW - GAMING & ENTERTAINMENT INDUSTRY

Casino Gaming

The casino gaming market, a significant part of the global gambling and entertainment industry, includes diverse options offering games of chance, skill-based games and live entertainment experiences. Casinos cater to different demographic segments through different models like casinos in boats, land-based revenues, and online platforms. Currently, the industry is undergoing massive transformation driven by technological advancements and evolving consumer preferences. The casino market size stood at US$ 321.8 billion in 2025 and is estimated to reach US$ 359.3 billion in 2026. The growth is led by growing legalisation, rising adoption of casinos in emerging economies and substantial rise in the online casino segment.

Casino gaming market size

US$ 321.8 billion

2025

US$ 359.3 billion

2026 (Estimated)

US$ 624 billion

2031 (Estimated)

(Source: Mordor Intelligence - Casino Gambling Market Size, Share & 2031 Growth Report)

In 2025, Asia-Pacific accounted for 38.4% of revenue, driven by Macau, Singapore and Japan with market maturing toward mass and premium mass. North America blends destination and regional footprints. The regulatory environment in Europe is steadily evolving, with the United Kingdom enhancing responsible-gaming controls and design rules for remote slots to reduce harm. The Middle East and Africa are witnessing steady growth.

The market is estimated to grow at 11.7% CAGR between 2026 and 2031 to reach US$ 624 billion by 2031. With technological advancements and innovation, and the integration of gaming with tourism and leisure, the market is growing at a steady pace with enhanced customer experience and improving operational efficiency. AI-driven personalisation, cashless gaming, blockchain-based transactions, virtual reality and augmented reality are reshaping the casino landscape.

(Source: Mordor Intelligence - Casino Gambling Market Size, Share & 2031 Growth Report)

GLOBAL GAMING INDUSTRY

In 2025, the global gaming industry (software only), encompassing console gaming, mobile platforms, cloud gaming, and immersive virtual experiences, stood at US$ 188.8 billion, a 3.4% gain over 2024s US$ 182.8 billion. The growth has been led by widespread adoption of smartphones, improved internet connectivity, and the rise of global digital communities. The market is expected to reach US$ 205 billion in revenue in 2026, up 4.6% YoY. The market is expected to reach between US$ 320-618 billion by 2030, depending on how aggressively cloud gaming and emerging markets absorb new players.

The gaming market is witnessing democratisation led by cloud gaming platforms, allowing users to stream high-quality games on basic devices. This accessibility is opening new markets, particularly in developing regions, where mobile gaming continues to dominate. Smartphones are the primary gaming device for 68% of players globally. PC gaming reaches 36.8% of players and console usage sits at 34.2%.

(Note: This data is not mutually exclusive and users engage across multiple devices)

Mobile gaming, generated US$ 103 billion in 2025, capturing the lions share of the market at 54.5%, and is expected to reach US$ 107 billion in 2026. Console gaming reached US$ 45.9 billion in 2025, and is forecasted to reach US$ 48 billion in 2026. PC gaming generated US$ 39.9 billion in 2025 and remains steady.

Asia-Pacific continues to lead all regions with revenue of US$ 87.6 billion in 2025, representing 46% of global spending. China alone supports 681 million players. North America contributed US$ 52.7 billion at 28% market share, while Europe stood at US$ 33.1 billion. Japan, the third-largest games market globally, witnessed a 7% revenue decline from currency pressure.

Nearly 43% of the worlds population, representing 3.6 billion people, plays games globally with 47% of players being female and 52% male. The average gamer age globally is 36 years old, and 80% of all players are 18 or older.

(Source: Icon Era - Gaming Industry Statistics And Revenue Data 2026 - Icon Era - Statistics)

INDIAN GAMING INDUSTRY

The Indian gaming industry is at a pivotal juncture with rapid user adoption and strong revenue growth on the one hand and various challenges stemming from compliance complexities, fragmented regulation, and intensifying competition from both domestic and global players, on the other. The popularity of mobile gaming, e-sports, gaming consoles is on a spike. The government has strong intentions to make India a leading force in the global gaming hub with the right balance of regulation, policy and investment.

The casino operations, land-based or vessel-based, though remain tightly regulated, and localised, serve as important contributors to state revenues and attract experiential tourists. The India casino tourism industry is witnessing steady growth, led by evolving tourism policies, increasing disposable income, and rising interest in gaming entertainment among domestic and international travellers.

With effect from 1 st May 2026, the Promotion and Regulation of Online Gaming Act, 2025 and the Online Gaming Rules,

2026 have come into effect. A comprehensive regulatory framework for the digital gaming sector has been introduced in India, with a view to safeguard citizens from the risks associated with online money games while simultaneously fostering a structured environment for e-sports and social gaming. The regulatory framework introduces the Online Gaming Authority of India as a unified, digital-first regulator. The framework clearly classifies games as e-sports, online social games and online money games. The rules mandate specific user safety features to protect vulnerable populations especially children. Service providers are required to implement age-gating, time restrictions, parental controls and fair-play monitoring. Under the new law, online money games have also been banned.

These new laws have made compliance mandatory, addressing previous loopholes and removing ambiguity. Payment systems have also been held responsible in addition to gaming companies. With the implementation of these laws, India is effectively building a structured and tightly monitored gaming ecosystem rather than an open, self-regulated market.

India Casino Tourism Industry Analysis

According to Future Market Insights report on India Casino Tourism Market, in the past five years, the Indian casino tourism grew at 14% CAGR to reach US$ 8.3 billion in 2025 despite the imposition of heightened taxation measures on gaming activities. This robust growth is attributable to various factors including increased disposable income, shifting lifestyles, a burgeoning middle class and the rising popularity of casinos among the Indian population. There has been a marked rise in India being seen as a gambling destination, with popular destinations including Goa and Sikkim. The combination of luxurious casino resorts, vibrant nightlife, and cultural richness has positioned Goa as an emerging state in casino tourism market. Millennials are leading the casino tourism trend holding ~29% share in 2025, led by their financial stability, technological ease, and desire for novel experiences, premium leisure and integrated travel options.

The landscape of gambling in India continues to remain complex. While strict prohibitions continue to prevail in most Indian states on physical casino gambling, states like Goa and Sikkim have established legal casino operations. The national stance has evolved due to mounting advocacy for regulation and revenue generation, leading to a patchwork of policies. Stakeholders include state governments, private operators, local communities, and international investors, all of whom influence the regulatory environment and market dynamics.

Driven by a rising demand for leisure and entertainment, Indias burgeoning economy and rich cultural heritage offer a promising landscape for casino tourism. The development of integrated casino resorts in tourist hotspots like Goa, supported by commercial gaming licences, allows for larger gaming floors and complementary services such as dining, entertainment, and hospitality. For larger gaming floors and complementary services, such as dining, entertainment, and hospitality. Commercial casinos play a substantial role in boosting state tourism revenue and extending visitor stay duration.

India faces tough competition from established global hubs like Macau, Las Vegas, and Singapore, which boast superior infrastructure and mature regulatory histories. Additionally, neighbouring countries like Sri Lanka and Nepal are liberalising their gambling laws, creating further regional competition for revenue. The sector is currently restricted by strict gambling laws and fragmented, inconsistent state-level regulations, creating high uncertainty for investors and operators. To become a major global player, India needs to simplify its regulatory environment, foster public-private partnerships, and develop green tourism policies. By upgrading its tourism infrastructure, implementing safe gambling practices, and leveraging its unique cultural identity, India can successfully attract both domestic and international tourists.

Source: India Casino Tourism Industry Analysis / Global Market Analysis Report - 2035

Regional Market Dynamics

Goa Goa continues to dominate Indias casino market, supported by its legal offshore and onshore operations. The state has established itself as a premier destination for gaming enthusiasts, with casinos serving as a cornerstone of tourism and a significant contributor to state revenues. Sikkim Sikkim remains a strong regional player, benefiting from favourable state policies and a steady influx of tourists. Its regulatory openness has enabled the development of licenced casinos, reinforcing its position as a key hub in the sector.

Regulations

Indias gaming industry has seen a sea of change in regulations during the year, with online gaming now under a new national framework namely, Promotion and Regulation of Online Gaming Act, 2025, while casino operations remain state-specific and tightly controlled.

The Promotion and Regulation of Online Gaming Act, 2025 is Indias first comprehensive central framework for online gaming which imposes a blanket prohibition on online money gaming. It has mandated adoption of consumer protection measures (age verification, anti-addiction safeguards), provides enforcement against illegal offshore platforms and imposes strict prohibitions on online real-money games.

Casinos continue to be governed by state specific laws. Goa and Sikkim allow licenced casinos, while most states prohibit them. Vessel-based casinos in Goa are particularly important for tourism and state revenue.

Goa: Licenced land and vessel-based casinos contribute significantly to state revenues. The Goa Gambling Act, 1976 allows five-star hotels to offer games of electronic amusement or slot machines with a licence. Offshore vessels can offer live table games and other gaming forms under a licence.

Sikkim: Limited casino licences, under state law, the Sikkim Casino Games (Control and Tax) Act, 2002.

Other states: Most prohibit casinos and gambling, with exceptions for lotteries and horse racing.

Effective from 22 nd September 2025, the applicable GST rate on the value of chips sold to players is 40%, thereby increasing the overall tax burden for both operators and players. Prior to this change, GST was applicable at the rate of 28%.

Driven by a rising demand for leisure and entertainment, Indias burgeoning economy and rich cultural heritage offer a promising landscape for casino tourism.

Industry Outlook

Indian gaming industry is entering a transformative phase, marked by rapid expansion and evolving regulation. Casinos remain important localised contributors to state revenues. The casino segment in India holds immense growth potential with increased clarity on levy of GST in casinos. Over 2025-2035, the casino tourism sector is expected to grow at 14.2% CAGR, to reach US$ 31.4 billion. With casinos offering premium, curated experiences and exclusive services and unique experiences, the sector is poised for robust future growth. In addition, expanding regulated casinos in select states could enhance tourism revenues. With regulatory clarity and sustained investment, India can establish itself as a globally recognised gaming hub.

HOSPITALITY INDUSTRY

Despite global headwinds, Indias hospitality growth remains resilient, firmly anchored by strong domestic demand. Leisure holidays, weddings, pilgrimage travel, visiting friends and relatives, meetings, exhibitions, conferences and events (MICE) and robust corporate movement together generate consistent occupancy across categories and geographies. According to ICRA, the Indian hospitality industrys revenue is expected to grow by 9-12% growth in FY 2025-26. Demand has been supported by post-holiday season business travel, long weekends, and events including the India AI Impact Summit 2026 and For our organisation, this environment presents both challenges and opportunities. We are committed to aligning with emerging regulatory frameworks, investing in responsible gaming practices, and strengthening our innovation pipeline to capture the growing demand. Our strategy is designed to ensure that we not only participate in this growth but also help shape a responsible, competitive, and future-ready entertainment ecosystem.

(Source: India Casino Tourism Industry Analysis /Global Market Analysis Report - 2035)

ICC Mens T20 World Cup. Geopolitical disruptions in early March 2026, leading to international flight cancellations stranding tourists and travellers in India, resulted in extended stays. The room occupancy and average room rates (ARRs) in FY 2025-26 is expected at 72-74% and Rs. 8,200-8,500, respectively, as compared to 70-72% and Rs. 8,000-8,200, respectively, in FY 2024-25. The pan-India premium hotel revenue per available room (RevPAR) is estimated to have increased to Rs. 5,900-6,300 in FY 2025-26 over Rs. 5,600-5,900 in FY 2024-25.

(Source: ICRA)

In FY 2023-24 and FY 2024-25, pan-India premium hotel occupancy stood at 70-72% each, amid strong demand from leisure and business travellers, as well as MICE activities. The same is likely to be 72-74% in FY 2025-26. In May 2025, the terror attack and military operations between India and Pakistan led to the cancellation of several hotel bookings, especially in northern and western India, which led to a dip in occupancy rates. However, the situation recovered following the abatement of the conflict. In Q2 FY 2025-26, heavy rains in parts of North and West India disrupted travel though recovered quickly. Occupancy levels were supported in Q3 FY 2025-26 by the wedding season, festive period and long weekend travel. In early December 2025, the implementation of new flight duty time limitations norms caused temporary flight disruptions, though the impact on hotel bookings was minimal and temporary. Flight cancellations led to extended stays, which, coupled with bulk bookings for the wedding season, reduced the impact. The post-holiday season business travel, long weekends, MICE demand 250 with events such as Indian AI Impact Summit in Delhi NCR and the ICC Mens T20 World Cup contributed to healthy occupancy in Q4 FY 2025-26.

Accordingly, on the global level, growing tourism activities, rising business travel demand, expansion of hospitality infrastructure, increasing popularity of economical lodging, growth in travel accessibility has led to strong growth in global budget hotels market. The market was valued at US$ 299.14 billion in 2025 and is expected to grow to US$ 315.02 billion in 2026 at a 5.3% CAGR. It is projected to reach US$ 385.15 billion by 2030, growing at a 5.2% CAGR. Similarly, the Indian budget hotels market holds a promising future, led by increasing domestic and international travel demand, rising disposable incomes, governments push towards tourism development and infrastructure improvements and a growing trend towards budget-friendly accommodations near religious tourism areas. Players are gearing up for this trend with strong focus on enhancing their services, technology integration, and expanding presence in tier 1 and tier 2 cities.

As of March 2024, India had ~1,80,000 branded hotel rooms, with an estimated 69,000+ keys in the pipeline till 2029. There is a gradual shift towards asset-light models, with hoteliers trying to expand reach with minimum capital investments through management contracts, franchise models, and strategic partnerships. In addition, the trend of hotel conversions is picking pace, with many properties reopening under new brand affiliations or repositioning strategies. This reflects the evolving market dynamics as operators adapt to changing traveller preferences and work to improve asset performance.

Globally, hospitality markets are expected to operate in a more cautious environment in 2026, shaped by geopolitical uncertainty, inflationary pressures and uneven economic recovery. The Indian hospitality sector is unlikely to see a severe adverse impact from the recent escalations in West Asia, considering that a major part of the demand is derived from domestic travel, which continues to remain robust. According to ICRA, the hospitality industry revenue growth is expected at 7-9% YoY in FY 2026-27. The premium hotel RevPAR is projected to increase to Rs. 6,200-6,500 in FY 2026-27, given the expectations of continued healthy occupancies and ARRs. The pan-India premium hotel occupancy is expected at 72-74% with strong headwinds from prolonged West Asia conflict.

The rapid development of regional airports, expressways, rail corridors and last-mile connectivity is reshaping travel behaviour and unlocking new hotel markets beyond traditional gateways. According to HVS ANAROCK, 2025 marked a record year for brand signings and the same trend is expected to continue into 2026 with growing partnerships between Indian hotel owners and international brands. Being one of the few large markets with strong domestic demand and a burgeoning middle class, India is well placed to reinforce its position as one of the most resilient hospitality markets globally.

(Source: ICRA – March 2026 report; CARE report - 1743158113_ Hospitality Sector - CareEdge Report.pdf)

REAL-ESTATE SECTOR

In 2025, Indias commercial real estate sector recorded broad-based buoyancy across office, retail, logistics, and data centres. Office absorption across the top eight cities surpassed 59 million sq. ft. Warehousing and industrial leasing crossed 50 million sq. ft. for the third consecutive year. Retail leasing gained traction across prime high streets and malls. The residential market continued its shift toward lifestyle upgrades, driven by strong demand for premium and luxury housing. Pan-India housing prices rose 4% in 2025. The market stood at Rs. 8.73 lakh crore in 2025, up 16% over 2024. The top eight metro cities (Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune) accounted for ~78% of pan-India volume sales, accounting for ~87% of the total sales value. Despite healthy capacity additions, data centres remain significantly underpenetrated, highlighting a long growth runway and positioning the sector for sustained expansion in 2026.

There is substantial increase in focus of the union government towards infrastructure growth in tier-2 and tier-3 cities. As per a report by Savills India, private equity (PE) investment in Indias real estate sector grew 66% to US$ 1.2 billion in the first quarter of 2026, as compared to same period last year. Majority of the investments were in the office segment, making up 41% of all investments. Majority investments were seen in Gurugram and Pune, two of Indias biggest commercial real estate hubs. The second largest share of investments was in the hospitality sector at 17% led by robust recovery in travel and tourism. 66% of total investments were by domestic investors amounting to US$ 817 million. About 63% of the domestic capital got invested in the construction of office buildings, ~18% went to building homes and buildings that can be used for more than one purpose, and 13% went into other types of assets, such as student housing and co-living spaces.

The strong momentum in the real estate investment is attributable to strong government support. A stable repo rate environment supports predictability for both homebuyers and developers, aiding financial planning and investment decisions. Despite global volatility the RBI has maintained a stable repo rate, boosting investor confidence. Various government schemes like Pradhan Mantri Awas Yojana (PMAY), Credit Linked Subsidy Scheme (CLSS), etc.

In the Union Budget FY 2026-27, governments focus on real estate development through infrastructure-led growth was a key highlight. Strong indirect support was extended through higher capital expenditure, asset monetisation and connectivity projects. Planned public capital expenditure was increased to Rs. 12.2 lakh crore in FY 2026-27 from Rs. 11.2 lakh crore in FY 2025-26, with a clear focus on cities with 5+ lakh population (tier 2 and tier 3 cities). The government also announced an Infrastructure Risk Guarantee Fund, dedicated REITs to monetise CPSE real estate assets, and seven high-speed rail corridors measures to boost housing demand, logistics expansion and commercial development, particularly outside metros.

Plotted development, the practice of developing and selling individual land parcels with basic infrastructure, is emerging as a preferred choice for a new generation of homebuyers and investors with greater accessibility, flexibility and transparency. Strong infrastructure development, namely highways, metro rail, and industrial zones, is fuelling demand for plotted development and redevelopment projects, especially in hitherto less discovered peripheral and emerging areas. Plotted developments are increasingly reshaping urban housing preferences, driven by rising demand for personalised living, growing middle-class affluence, and a desire for spacious, independent homes. Unlike conventional apartment complexes, these projects allow buyers to design and build customised residences while enjoying the benefits of gated communities with premium amenities.

Homebuyers increasingly seek sustainable living options that offer isolation and harmony with nature, distancing themselves from urban noise and pollution. In 2025, over 126 land deals spread across 3,772 acres were concluded across India, up 50% as compared to 2,514 acres transacted through 133 deals in 2024. Developers are looking to acquire larger land parcels for integrated development projects spanning residential townships, plotted layouts and luxury villas driven by the growing demand for ultra-luxury real estate and premium living spaces.

(Source: Presentation Deck - Standard v1; Strong start to 2026: India real estate attracts US$ 1.2 billion in private equity; what it means for buyers, investors; Real Estate Investments: What are plotted developments and 10 tips for investing in this kind of real estate - The_Times of India)

COMPANY OVERVIEW

With rich experience, Delta Corp Limited (hereafter referred to as the Company or Delta Corp) holds a prominent place in the Indian casino gaming segment, as the sole publicly listed company in the regulated casino gaming sector. The Company conducts licenced operations in Goa, and holds luxury hospitality assets in Goa and Daman. The Company operates a diversified portfolio spanning offshore and land-based casinos, resort hotels, and strategic investments in real estate. The Company discontinued certain smaller businesses viz., Deltin Zuri at Goa in January 2026 and Deltin Denzong at Sikkim in May 2026, as they were no longer commercially viable under the revised taxation framework.

Under the unified Deltin brand, the Company operates both offshore and onshore casinos across key licenced jurisdictions in Goa. With 1,500+ gaming positions, these properties cater to a diverse range of player segments, backed by purpose-built infrastructure, trained personnel, integrated hospitality support and a distinctive mix of live and electronic gaming experiences. With rich experience, the Company has cultivated deep insights into consumer behaviour across segments, allowing it to effectively attract, engage, and retain a broad and diverse customer base.

The Company is in advanced stages of completing a new casino vessel, to be inducted into the Mandovi River. Subject to regulatory approvals and final operational-readiness, commercial operations are expected to commence in FY 2026-27. This addition is expected to further strengthen the Companys presence in Goas live gaming ecosystem.

The Company has recently launched DeltinOne, a new-age mobile app, offering one-of-its-kind digital experience in luxury gaming. In Indias premium entertainment space, the app is equipped with features such as seamless travel bookings, curated lifestyle privileges, and personalised dashboards. The app continues to enhance guest experience management and integrates convenience, connectivity, and personalisation to enrich every aspect of the Deltin experience.

Casino Gaming Segment

Particulars	Description	Key Features
Deltin Royale, Goa	Asia\u2019s largest offshore gaming vessel, comprising five fully-operational decks.	950 gaming positions,
		120+ live gaming tables,
		2 VVIP gaming rooms,
		25+ slot machines,
		spread over 65,000 sq. ft.
Deltin JAQK, Goa	A comprehensive entertainment destination featuring four fully functional decks.	430 gaming positions,
		50+ live gaming tables,
		1 VIP gaming area,
		8+ slot machines,
		spread over 40,000 sq. ft.
King Casino, Goa	India\u2019s first offshore gaming casino, relaunched in 2016, now operates as a boutique luxury casino.	206+ gaming positions,
		30+ live gaming tables,
		10+ games,
		spread over 25,000 sq. ft.
Deltin Suites Casino, Goa	A land-based casino located within an all-suite hotel in North Goa.	1,180 sq. ft. casino,
		62+ gaming positions
Proposed new vessel, Goa	A large floating Casino with escalators and big open deck entertainment area.	2,000 gaming positions
		250+ Live Gaming tables
		3 VVIP rooms
		43 slot machines
		Gaming area of 5,660 sq. mt.

Hospitality Segment

In the hospitality sector, Delta Corp operates luxury properties including the ~106-key all-suite five star The Deltin Suites in Goa, the integrated 176-room The Deltin Hotel in Daman and the new upcoming ~375-key hotel and casino project in Panjim likely to be operational by the first quarter of FY 2027-28. Additionally, in November 2025, the Companys subsidiary, Delta Penland Limited, acquired a ~100-key hotel property in Alibaug on an as-is-where-is basis. The property is currently undergoing furnishing and fit-out activities and is expected to become operational by the first half of FY 2027-28. This strategic diversification into the hospitality sector, complements the core gaming operations by enhancing customer experience. These properties are designed to deliver sophisticated environments that cater to both leisure and business clientele, offering a complete, premium and integrated entertainment experience.

Particulars	Description	Key Features
The Deltin, Daman	The sole 5-star hotel in Daman, featuring approximately 52,000 sq. ft. of state-of-the-art banqueting, conferencing and open lawn space.	176 rooms,
		3 gourmet restaurants and 2 bars,
		27,000 sq. ft. Indoor event space,
		Three swimming pools, with a special kids\u2019 pool and indoor & outdoor games
Deltin Suites, Goa	A North Goa hotel comprising exclusively of suites, featuring an integrated expansive casino.	62+ gaming positions,
		106 rooms
		24*7 Vegas restaurant, Whiskys lounge bar and spa and Caldin - Goan_speciality restaurant.

Particulars	Description	Key Features
The Deltin - Tonca	Upcoming largest Inventory 5 Star Hotel in the Capital City of Panaji, Goa comprising exclusively of suites and Deluxe Rooms Catering to all segments, featuring an integrated expansive casino	375 Rooms
		All day Dining Restaurant, 1 speciality restaurant, lounge bar and Spa with Wellness Centre
		5,000 sq. ft. Indoor event space, Swimming pools with a special kids\u2019 pool Gaming positions/tables yet to be finalised
Upcoming Hotel, Alibaug	Upcoming Mid Segment Hotel in a coastal town of Alibaug, just south of Mumbai, in western India	100 Rooms
		All day Dining Restaurant, lounge bar along with event Space for parties and conferences
		Roof Top Swimming pool

Real Estate Segment

In partnership with Alpha Alternatives Fund Advisors LLP and Peninsula Land Limited, the Company has established real estate development platform for residential and plotted projects around Mumbai Metropolitan Region. The Companys real estate initiatives are designed to capitalise on high-growth micro-markets in and around key urban clusters by delivering premium lifestyle destinations, mixed-use land solutions, and residential redevelopment projects. Under this platform, various land parcels aggregating to investments of over Rs. 190 crore have been acquired across Bhilavale, Karjat, Sogaon, and the Alibaug region. Delta Corp has an approved commitment for investment in these projects to the tune of Rs. 90 crore in one or more tranches.

The Company is in the process of demerger of its businesses into two separate entities, one entity focused on the Gaming business and the other entity focused on Hospitality and Real Estate. The proposed demerger will be implemented as a mirror split, whereby for every share held in Delta Corp Limited, the shareholder will be allotted one corresponding share in the resultant company. This restructuring is intended to enable sharper strategic focus and unlock long-term shareholder value. Subject to regulatory approvals and procedural requirements, the Company is hopeful of completing the process during FY 2026-27. Delta Corp remains committed to prudent capital allocation, operational discipline and transparent communication with its stakeholders.

Strengths	Weakness	Opportunities	Threats
Only listed casino gaming company in India Strong brand equity giving access to capital market	Subject to strict compliance by State and Central government rules and regulations which are prone to frequent modifications	Growing tourism by both domestic and international travellers	Evolving and frequently changing regulatory environment
Early mover in a regulated space	Revenue concentration risk led by increased dependence on Goa State	Increased preference for luxury and integrated casino-resort experiences among young and affluent travellers	Economic slowdown may limit discretionary spends impacting business earnings
Strong customer reach	High GST burden impacting margins and pricing	Untapped potential in Indian markets for new licensing and regional expansion
Well established and diversified offline footprint	Regulatory constraints limit business expansion beyond Indian gaming market
Seasoned management team with deep industry expertise	Social perception and challenges around gambling
High entry barriers due to stringent licensing

FINANCIAL REVIEW

Consolidated Financial Snapshot

( Rs. in crore)

Year	FY 2025-26	FY 2024-25	YoY change
Casino Gaming	642.59	678.60	-5.31%
Hospitality Division	47.60	53.16	-10.46%
Gross Revenue	690.19	731.76	-5.68%
Less: Intragroup Transactions	1.73	2.13	-18.78%
Net Revenue	688.46	729.63	-5.64%
Other Income	40.72	57.08	-28.66%
Total Income	729.18	786.71	-7.31%
EBITDA	171.31	244.17	-29.84%
Profit before Exceptional items and tax	118.48	188.88	-37.27%
Exceptional Item	(5.51)	213.22	-
Tax Expenses	28.73	84.06	-65.82%
Profit after Tax and Minority Interest	85.29	248.99	-65.75%

The Companys profitability has been materially impacted by the increase in the GST rate to 40% on the sale of gaming chips. Management is actively implementing multiple operational and efficiency-led initiatives to mitigate this impact. These include optimising pricing strategies, rationalising operating costs, enhancing asset utilisation, streamlining processes, and leveraging technology to improve overall operational efficiency. Through these measures, the Company aims to partially offset the adverse impact of the higher GST regime while sustaining long-term profitability and strengthening operational resilience.

The financial year under review presented a complex and evolving business landscape, marked by regulatory headwinds and shifting customer dynamics. Despite these challenges, the Group demonstrated resilience through operational discipline, strategic initiatives, and continued focus on long-term value creation.

The Group reported consolidated gross revenue of Rs. 690.19 crore in FY 2025-26, reflecting a decline of 5.68% compared to Rs. 731.76 crore in the previous year. Net revenue stood at Rs. 688.46 crore, down 5.64% YoY.

Casino Gaming Revenue declined by 5.31% to Rs. 642.59 crore during the year. The decline was primarily attributable to the higher GST rate of 40% (as compared to 28% earlier), which was applicable for a significant part of the year. Additionally, operations were impacted by the temporary closure of King Casino for approximately two months due to vessel transition. The sale of Deltin Zuri (land-based casino) in January 2026, resulted in only a partial-year contribution from the property.

Hospitality Division Revenue decreased by 10.46% to Rs. 47.60 crore due to poor road connectivity in the Mumbai–Vapi–Daman belt and demand disruptions arising from geopolitical tensions impacting travel (March 2026).

After accounting for intragroup transactions of Rs. 1.73 crore, the Groups net revenue for FY 2025-26 stood at Rs. 688.46 crore, mirroring the decline in gross revenue.

Other income declined by 28.66% to Rs. 40.72 crore, mainly due to lower treasury and non-operating income. Consequently, total income stood at Rs. 729.18 crore, registering a decline of 7.31% YoY.

EBITDA for the year stood at Rs. 171.31 crore, a decline of 29.84% from Rs. 244.17 crore in FY 2024-25. EBITDA margin contracted to 24.88% (from 33.46%), impacted by lower revenue base, increase in employee costs due to hiring for upcoming offshore vessel, elevated legal and litigation expenses related to GST matters, operating deleverage during the transition phase. Profit before exceptional items and tax declined by 37.27% to Rs. 118.48 crore.

The current year includes an exceptional charge of Rs. 5.51 crore towards incremental liability arising from implementation of new labour codes. In contrast, the previous year included substantial exceptional gains of Rs. 213.22 crore from divestment and fair valuation of Deltatech Gaming Limited and other items, which significantly elevated profitability in FY 2024-25.

Accordingly, Profit After Tax (PAT) stood at Rs. 85.29 crore, compared to Rs. 248.99 crore in the previous year, reflecting a decline of 65.75%.

The Group undertook several strategic measures to improve operational efficiency and long-term profitability:

• Closure of commercially unviable land-based casinos, Deltin Zuri, Goa and Deltin Denzong, Sikkim;

• Continued investment in a new offshore gaming vessel, expected to be operational in FY 2026-27;

• Focus on cost rationalisation, customer engagement, and service enhancement initiatives.

Despite the margin pressures, the Group remained steadfast in investing in customer-centric strategies, including targeted marketing campaigns and enhanced service delivery mechanisms, aimed at strengthening brand loyalty and footfall recovery.

As of 31 st March 2026, the Groups financial position remains debt free with cash and cash equivalents at ~ Rs. 75.70 crore.

Return on Net Worth (RoNW) stood at (-15.43%) as against 6.65% in the previous year. The decline was primarily due to reduced profitability, higher equity base and One-time impairment provision of approximately Rs. 460 crore towards investment in online gaming business, following regulatory restrictions imposed in September 2025.

Additionally, ongoing investments in large projects, (new vessel in Goa and new hotel in Goa & Alibaug), yet to yield returns, also impacted overall return ratios.

Key Financial Ratios – Movement Analysis

Ratios	FY	FY	Change (%)
	2025-26	2024-25
Debtors Turnover	147.26	93.60	57.33%
Inventory Turnover	2.93	3.42	-14.33%
Current Ratio	2.13	4.94	-56.88%
Operating	18.07%	26.64%	-32.17%
Profit Margin
Net Profit Margin (%)	12.39%	34.13%	-63.70%
Return on Net Worth (RoNW)	-15.43%	6.65%	-332.03%

Ratio Variance Explanations

During FY 2025-26, the Groups overall revenue growth impacted due to increased GST rate from 28% to 40% for significant part of the year, which became effective from 22 nd September, 2025. Hence, there are significant changes in majority of ratios.

The decrease in net sales during FY 2025-26 had a cascading effect on our financial ratios, including debtors turnover, ratio and current ratio. The primary reason behind these declines can be attributed to a decrease in net sales by 5.64%. Moving forward, strategic measures will be implemented to address these challenges and improve our financial performance.

1. Debtors Turnover: The increase of 57.33% is driven by lower turnover and faster recovery, consequently improving receivables collection.

2. Inventory Turnover: Decline of 14.33% due to lower business volumes and relatively slower inventory movement.

3. Current Ratio: The current ratio declined primarily due to a reduction in current assets arising from the impairment provision on investments in online gaming companies amounting to Rs. 460 crore, coupled with an increase in current liabilities and decrease in current assets.

4. Operating Profit Margin: Operating profit margin declined by 32.17% due to lower revenue, higher operating costs, increased legal expenses relating to GST litigation, and additional employee costs incurred for the new vessel.

5. Net Profit Margin: It declined by 63.70% on account of lower revenue with higher operating cost and higher spending on legal cost on account of GST litigation and fresh hiring of staff for the new vessel. Further, last year profit had significant exceptional income which is not there in current year.

6. Return on Net worth: Return on Net Worth declined by 332.03% due to lower operating profits, impairment provision on investments in online gaming companies, and a higher equity base, resulting in lower returns on shareholders funds.

DETAILED EXPLANATION OF RATIOS

Debtors Turnover: This ratio evaluates a Companys effectiveness in collecting receivables, or amounts due from customers, highlighting how efficiently it manages its credit policies. It is calculated by dividing turnover by the average trade receivables.

Inventory Turnover: This ratio indicates how frequently a Company utilises and replenishes its inventory over a given period. It is calculated by dividing the cost of goods sold by the average inventory.

Current Ratio: This ratio is a liquidity measure that reflects a Companys ability to meet its short-term obligations due within a year. It is calculated by dividing current assets by current liabilities.

Operating Profit Margin (%): This margin reflects the percentage of profit a Company earns from its core operations. It is calculated by dividing Earnings before Interest and Taxes (EBIT) by turnover.

Net Profit Margin (%): This margin expressed as a percentage of revenue, shows how much net income a Company earns from its total revenue. It is determined by dividing the profit for the year by the turnover.

Return on Net Worth (RoNW): RoNW is a profitability metric expressed as a percentage. It evaluates a Companys financial performance by dividing its total comprehensive income for the year by the average capital employed during that period.

Debt Equity Ratio and Interest Coverage Ratio: As the Group had no debt during the current and previous financial years, the debt-equity ratio and interest coverage ratio are not applicable.

BUSINESS OUTLOOK

Delta Corp continues to strengthen its strategic positioning through calibrated diversification and expansion across its core business verticals. Building on its execution capabilities and experience in quick-turnaround projects, the Company is actively scaling its presence in the real estate sector while remaining focused on value-accretive opportunities. Its disciplined investment approach, supported by the promoters deep industry expertise, remains central to delivering sustainable long-term growth.

The Company expects a gradual recovery in the casino and hospitality segments. This recovery is expected to be driven by key growth catalysts, including the commissioning of a new gaming vessel and the addition of a new hotel asset at Goa and Alibaug, which are anticipated to enhance operating leverage, improve customer experience, and strengthen profitability.

Delta Corp is well-positioned to execute its growth strategy effectively. Its foray into real estate has been undertaken after careful evaluation, and the Companys diversified portfolio is expected to provide stability and support long-term value creation.

As per Honble Supreme Courts verdict on GST litigation, all pending show-cause notices, adjudication proceedings, and consequential demands concerning online gaming, fantasy sports, and casino transactions must be evaluated and decided under the frameworks of Rules 31B and 31C. Accordingly, the levy of GST would 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.

Concurrently, the Company has implemented focused cost optimisation initiatives to enhance operational efficiency and mitigate margin pressures.

For information related to Human Resource, please refer to BRSR section of this annual report.

KEY RISKS & MITIGATION STRATEGIES

The Company has implemented a strong risk mitigation framework capable of proactively identifying, assessing, and addressing plausible risks to business operations. In line with its commitment to strong governance and regulatory compliance, it has deployed a comprehensive compliance management system to monitor, manage, and track statutory and regulatory obligations. This digital solution enhances visibility, supports timely compliance, and enables informed decision-making, thereby strengthening the overall risk management framework.

Risks Associated with Mergers and Acquisitions: Mergers and acquisitions require the integration of varied business operations, often giving rise to uncertainties and execution challenges. Inadequate management of these complexities may adversely affect the Companys financial position, operating performance, and cash flows.

Mitigation: Delta Corp has a proven track record in identifying and executing strategic acquisitions and investments. A structured and rigorous evaluation process is followed to ensure objective decision-making. The Board carefully reviews and approves each acquisition proposal, following clear criteria, thereby reducing the risk of misalignment and execution challenges.

External Event Risks: The Company faces potential disruption from geopolitical instability, future pandemic outbreaks, and other unforeseen events that could impact its operations. This risk is especially pronounced in the hospitality segment, which is closely tied to changes in travel and tourism trends.

Mitigation: The Company has a strong footprint in the domestic gaming and hospitality sector. The increase in operational revenue and other income highlights rising engagement from both new and existing customers. The Company remains prepared to address unexpected challenges, supported by managements ongoing focus on tracking economic trends and emerging risks.

Regulatory Compliance Risk: Increased regulatory scrutiny or unfavourable policy changes in key operating areas, poses risk to business. Any non-compliance or breach could lead to significant penalties, including fines, licence suspension or revocation, and legal action.

Mitigation: The Company has adopted a structured approach to regulatory compliance, with statutory obligations actively monitored and overseen by the leadership team.

Inflationary Pressure Risk: Rising inflation, particularly wage inflation, can lead to increased human capital costs, a key component of the Companys expenses, thereby pressuring margins. At the same time, reduced consumer purchasing power may dampen discretionary spending on leisure and gaming, creating a dual impact on both costs and revenue.

Mitigation: Delta Corp maintains cost stability through long-term employment contracts, enabling greater predictability in workforce expenses. The Company focuses on building and retaining a skilled, diverse talent base, with employee development aligned to its strategic goals. Retention remains strong, supported by competitive pay, structured training programs, and active employee engagement. Despite persistent inflationary and economic uncertainties, the ongoing recovery in leisure spending continues to support the gaming and casino sector, helping Delta Corp effectively manage these challenges.

Competitive Landscape Risk: The competition is intense in a rapidly evolving and competitive industry, with the presence of both established players and new entrants. Technological advancements and evolving competitors strategies, including marketing initiatives and product innovations, may impact the Companys market position and growth trajectory.

Mitigation: With strong brand equity Delta Corp has a strong foothold in the gaming sector. The Company has created a moat for itself with high-quality content, experienced talent pool, robust technology infrastructure, and capabilities in data analytics. Its diversified portfolio, along with a sustained focus on delivering an enhanced user experience, has further strengthened its market position. To preserve and enhance its competitive advantage, the Company remains focused on deepening customer engagement through the introduction of innovative content, expansion of its service offerings, and the strategic deployment of digital and social media platforms.

Geographic Dependence Risk: Excessive dependence on select geographies for its business operations may adversely impact revenue streams and profitability in the event of economic, regulatory, or market disruptions in such regions. Delta Corp remains exposed to this risk on account of the concentration of its operations in specific locations.

Mitigation: The Company continues to focus on its core gaming and gaming-led hospitality segments while pursuing a calibrated expansion strategy across key markets. This includes the development of new properties, enhancement of customer experiences, and adoption of digital innovations, with the objective of strengthening its market leadership and diversifying its operational footprint.

INTERNAL CONTROLS

Delta Corp maintains a comprehensive and robust internal control system to ensure efficient operations, safeguard assets, and comply with regulatory requirements. These controls are commensurate with the scale, nature, and complexity of the Companys operations, with regular evaluations conducted across all functions. Periodic reviews by the Management and Internal Auditors are further examined by the Audit Committee, while the Board views audit reports as an independent assurance of operational efficiency and integrity. The Company remains committed to strengthening its control environment through timely corrective actions, thorough investigations, and proactive risk management to address emerging challenges effectively.

CAUTIONARY STATEMENT

This report contains statements that may be forward-looking, including, but without limitation, statements relating to the implementation of strategic initiatives and other statements relating to the Companys future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward-looking statements to reflect future/likely events or circumstances.