Delta Corp Ltd Management Discussions

ECONOMY OVERVIEW

Global Economy Overview

The global economy demonstrated resilience in 2024, successfully navigating through persistent challenges arising from shifting geopolitical dynamics. While certain regions witnessed slower growth owing to heightened uncertainty, the overall economic performance remained stable. In 2024, the global economy expanded at a rate of 3.3%. Inflationary pressures continued to decline; however, the pace of easing varied across regions. Service-related inflation remained elevated in several major economies and some emerging markets continued to grapple with underlying price pressures.

Monetary policies differed across countries. Some central banks started to lower interest rates, while others kept them high to manage inflation. Trade policies also influenced outcomes – some countries introduced tariffs to protect local industries, while others lowered trade barriers to support stability. Despite these challenges, advanced economies grew steadily at 1.8% in 2024. Emerging Markets and Developing Economies (EMDEs) also saw strong, though slightly slower growth at 4.3% in 2024.

World Economic Output (%)
	2024	2025P	2026P
World Output	3.3	2.8	3.0
Advanced Economies	1.8	1.4	1.5
United States	2.8	1.8	1.7
Euro Area	0.9	0.8	1.2
Japan	0.1	0.6	0.6
United Kingdom	1.1	1.1	1.4
Canada	1.5	1.4	1.6
Other Advanced Economies	2.2	1.8	2.0
Emerging Market and Developing Economies	4.3	3.7	3.9
Emerging and Developing Asia	5.3	4.5	4.6
China	5.0	4.0	4.0
India	6.5	6.2	6.3
ASEAN-5 (Indonesia, Malaysia, Philippines, Thailand, Vietnam)	4.6	4.0	3.9
Sources: IMF April 2025 report

Monetary policies are currently diverging as central banks respond to country-specific economic conditions and recent shocks. While policy remains broadly tight, major institutions like the Federal Reserve and the European Central Bank are expected to begin reducing interest rates – though not at the same pace. This uneven adjustment increases the risk of abrupt market reactions, which could tighten financial conditions for emerging markets and developing economies (EMDEs) and contribute to greater currency volatility. The prevailing uncertainties are reflected in the global growth projections, which indicate a slowdown to 2.8% in 2025, followed by a modest recovery to 3.0% in 2026. Growth in advanced economies is expected to remain moderate, at 1.4% in 2025 and 1.5% in 2026. In contrast, emerging markets and developing economies (EMDEs) are projected to grow at a stronger pace of 3.7% and 3.9%, respectively. This divergence suggests a deceleration in the pace of income convergence between advanced economies and EMDEs.

At the same time, global inflation is projected to keep declining, reaching 4.3% in 2025 and 3.6% in 2026. Inflation in advanced economies is expected to return to target faster, falling to 2.2% by 2026, while remaining higher in many EMDEs. The outlook reflects recent trade measures introduced by the United States, including broad import tariffs and higher duties on goods from China and other countries. These actions have triggered retaliatory responses from other nations, raising concerns about potential trade disruptions and increased global economic fragmentation. In this context, continued dialogue and strengthened international cooperation present valuable opportunities to enhance global stability and promote mutual understanding.

Indian Economy Overview

India is currently the fifth-largest economy in the world by total GDP and is on the cusp of becoming the fourth-largest, underscoring its growing influence in the global economy. However, uncertainty around the national elections in early FY 2024-25 and weather-related disruptions in the following quarter impacted construction and manufacturing activities. These factors contributed to weaker-than-expected growth in gross fixed capital formation.

Despite these challenges, Indias economy has remained resilient, supported by strong fundamentals and continued efforts in sustainability and innovation. According to the second advance estimates from the Ministry of Statistics and Programme Implementation (MOSPI), real GDP is expected to grow by 6.5% year-on-year in FY 2024-25, following a 9.2% increase in FY 2023-24.

Private consumption and government spending saw notable growth during the year. On 9^th April, 2025, the Reserve Bank of Indias Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 6.0%, marking the second-rate reduction since May 2020. The repo rate was previously 6.25% and was last reduced from 6.5% in February 2025. This decision reflects changing global economic conditions, including concerns over US reciprocal tariffs on major economies, which have added to global growth uncertainties. The move is aimed at improving liquidity and encouraging economic activity. Despite the cut, the MPC maintained a neutral policy stance to allow flexibility in responding to future developments in the economy and financial markets. Consumer Price Index (CPI) inflation is projected at 4.0% in FY 2025-26, down from 4.9% in FY 2024-25.

In the coming period, household spending is expected to stay strong, supported by the tax relief measures announced in the Union Budget for FY 2025-26. Investment in fixed assets is also likely to rise, driven by better capacity utilisation, stronger balance sheets of banks and companies and the governments continued push for capital investment.

FY 2025-26 Union Budget also includes Rs 1.5 trillion in 50-year interest-free loans for states, intended to support infrastructure development in areas such as transport, urban infrastructure and industrial growth. With a clear focus on self-reliance, adaptability and global integration, India is well-placed for steady growth. The RBI expects Indian GDP to grow by 6.5% in FY 2025-26, supported by initiatives like "Make in India", large infrastructure projects and ongoing policy reforms aimed at boosting competitiveness and long-term economic expansion.

INDUSTRY OVERVIEW - GAMING & ENTERTAINMENT INDUSTRY Casino Gaming

The casino gaming market has experienced notable expansion in recent years. The growth has been driven by the rise of gaming platforms, robust economic performance, a surge in international travel and tourism and strategic marketing initiatives adopted by organised players. The global casino gaming market is projected to grow from US$ 161 billion in 2024 to US$ 173 billion in 2025, reflecting a year-on-year (YoY) growth of 7.7%.

The market is projected to reach US$ 230 billion by 2029, drivenbyaCAGRof7.4%.Thisoutlookreflectstechnological progress across virtual and augmented reality, the growing use of blockchain, increasing smartphone penetration and enhanced digital connectivity. Expansion into untapped regions by leading casino operators further contributes to this trajectory.

At the same time, the integration of gaming with tourism and leisure is opening up new avenues for growth. The expansion of legalised gaming in regions such as the U.S. and parts of Asia has attracted significant investment and opened new markets. At the same time, increasing consumer demand for immersive, all-in-one entertainment is transforming casinos into multi-dimensional leisure destinations. In 2024, North America led the global casino gaming market, with Asia-Pacific expected to be the fastest-growing region in the years ahead.

Source: https://www.thebusinessresearchcompany.com/ report/casino-gaming-global-market-report

GLOBAL GAMING INDUSTRY

The global gaming market continued on a path of steady recovery in 2024, generating US$ 178 billion, with a modest year-on-year growth of 0.6%. According to Newzoo, the market is expected to grow consistently over the next few years, reaching US$ 198 billion by 2027. Innovations such as cloud gaming and virtual reality created immersive experiences that attracted a wider audience and improved player retention during 2024. Cross-platform compatibility enabled seamless engagement across different devices, promoting inclusivity and expanding the gaming community. The rising popularity of competitive gaming increased viewership and sponsorship opportunities, strengthening the industrys visibility and revenue streams during the year. The integration of social features enhanced player interaction and community engagement, contributing to higher user retention. Additionally, the growing diversity of gamers across various age groups and backgrounds led to a more inclusive market and a wider range of game genres. These factors collectively drove the gaming industrys growth and evolution throughout the year 2024.

The global gaming market remained stable in 2024, reaching US$ 178 billion with a slight growth of 0.6% compared to 2023. Despite strong engagement in the latter half of the year, the PC segment saw marginal growth of just 0.1% YoY, reflecting limited consumer spending during the year. The console market declined by 3.9%, driven by a lack of major premium releases and underperformance of key titles. In contrast, the mobile gaming market grew by 2.8%, supported by a recovery in Western regions, although this was partially offset by a slowdown in mature East Asian markets.

In 2024, the global games market reached US$ 178 billion in revenue, showing a steady growth of 0.6% YoY. Asia-Pacific led the market with US$ 84.1 billion, making up 47% of the total, followed by North America at US$ 49.0 billion, accounting for 28%, with minimal growth of 0.1% YoY. Europe contributed US$ 30.7 billion, or 17% of the market, but saw a slight decline of 1.6% YoY. In contrast, growth was stronger in emerging regions – Latin America rose by 6.2% YoY to US$_7.7_billion, while the Middle East and Africa posted the highest growth at 7.5% YoY, reaching US$ 6.4 billion. Together, the U.S. and China remained the key drivers of global gaming revenue, contributing a combined 52% of the total, with China generating US$ 47.0 billion and the U.S. closely behind at US$ 46.1 billion.

INDIAN GAMING INDUSTRY

The Indian gaming industry stands at a crossroads – buoyed by explosive user and revenue growth but challenged by compliance complexities, fragmented regulation, and intense global and domestic competition. Online gaming leads in both scale and innovation, while casino (land and vessel-based) operations remain tightly regulated, localized, and foundational to state revenues where licensed. Strategic regulatory clarity, supportive policy, and sustained investment will be critical for translating Indias gaming potential into a robust, globally competitive, and responsible entertainment sector.

The Indian casino gaming and the Indian casino tourism industry are intrinsically linked, as the development and growth of one directly influences the success of the other. Destinations like Goa and Sikkim have become popular travel hotspots, where gaming offerings such as table games and slot machines draw a growing number of visitors.

Between 2019 and 2023, the casino tourism market in India registered a CAGR of 13.9%, supported by higher incomes, lifestyle shifts and the emergence of integrated resorts. Looking ahead, the market is projected to grow at a CAGR of 14.2% from 2024 to 2034, rising from an estimated US$ 7.29 billion in 2024 to over US$ 27.51 billion by 2034. This growth is driven by increasing interest in luxury travel and entertainment, particularly among younger, affluent travelers and a burgeoning middle class. Millennials are leading this trend, seeking novel experiences, premium leisure and integrated travel options.

Casino resorts in Goa are evolving into all-in-one entertainment hubs that blend gaming with upscale accommodations, fine dining and live performances. While Goa continues to lead, regions like Daman are gaining traction due to new infrastructure and investment opportunities. Regulatory progress across states is also paving the way for industry expansion, with increased focus on responsible gaming through staff training, self-exclusion options and ATM access controls.

In terms of consumer segments, individuals aged 35 to 50 are expected to dominate the market in 2025, accounting for 29% of participants. This group brings financial stability and a desire for immersive experiences. Slot machines continue to be one of most popular game, due to their simplicity and high jackpot appeal. Indias casino tourism and casino gaming industry is at an inflection point. With rising domestic demand, evolving infrastructure and greater acceptance of gaming, aligning regulation, investment and ethical standards could position India as a compelling destination in the global casino tourism landscape.

Source: https://www.futuremarketinsights.com/reports/india-casino-tourism-market

In 2024, casino revenues remained largely stable as gaming companies absorbed the impact of the revised GST within their margins. The 2023 policy shift introduced a 28% GST on the full-face value of chips bought by players, replacing the previous tax on Gross Gaming revenue (GGR). Similarly, online gaming companies also faced the challenge of a 28% GST on total deposit amount which was earlier limited to platform fees.

Regulatory changes, including updates to taxation policies, played a key role in shaping the growth trajectory of the sector, impacting both operators and players. Despite these changes, casino gaming remained an important part of the wider gaming industry and continued to attract business interest. Despite this challenge, most Online gaming companies reported growth at the gross revenue level. Meanwhile, esports and casual gaming continued their strong momentum, sustaining the double-digit growth trend observed in previous years.

The transaction gaming segment experienced a slowdown in growth with revenues moderating from Rs 190 billion in 2023 to Rs 179 billion in 2024. This decline was primarily driven by the introduction of a 28% GST on players deposits. This led to a rise in illegal offshore betting and gaming platforms.

Most gaming companies absorbed the GST impact and as a result, the segments revenue declined by 6%, after consistently growing at over 20% in previous years. However, casual gaming maintained strong momentum with a 16% growth, partially offsetting the decline.

Transaction-based games revenues (Rs in billion)

Game type	2022	2023	2024
Fantasy sport	67	82	76
Rummy and poker	74	87	80
Other participation	18	20	23
fee games
Total	159	189	179

Sources: E&Y Report March 2025

Sources: E&Y Report March 2025

The country has the potential to become a global casino tourism destination, driven by rising domestic demand, evolving infrastructure, growing acceptance of gaming and an increasing focus on regulation and ethical practices. However, challenges such as inconsistent state-level regulations and competition from international hubs like

Macau, Singapore and Las Vegas remain. To unlock its full potential, India must streamline policies, attract private investment and capitalise on its cultural diversity to establish a strong and distinct global gaming identity.

Gaming Regulations in India

Offline and online gaming fall under state jurisdiction, meaning only Indian states can create laws for gambling within their territories. Goa and Sikkim are exceptions, permitting offline gaming under their state regulations. The Goa Gambling Act, 1976 allows five-star hotels to offer ‘games of electronic amusement or slot machines with a license, and table games and other gaming forms may also be provided on offshore vessels under a license. Andhra Pradesh, Telangana, Assam, and Odisha do not exempt games of skill in their gambling laws, prohibiting any game played for monetary stakes.

Indias casino industry, although not widespread, has a significant presence in Goa and Sikkim, becoming key hubs for legal gambling and casino activities, boosting tourism and local economies. Goas casino industry operates under the Goa, Daman and Diu Public Gambling Act, of 1976, with licenses granted to both onshore and offshore casinos. Sikkim regulates its casino operations under the Sikkim Casino Games (Control and Tax) Act, 2002, allowing casinos to enhance tourism and generate revenue. In 2023, the Ministry of Electronics and Information Technology (MeitY) introduced regulatory measures for the online gaming sector. This included the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2023, aiming to establish Self-Regulatory Bodies (SRBs) to evaluate and endorse permissible online games.

Indias gaming industry is undergoing a significant transformation, driven by regulatory developments, market expansion and a growing focus on responsible gaming practices. A key concern for the industry is the lack of clarity around retrospective GST taxation. The 2023 policy shift introduced a 28% GST on the full-face value of chips bought by players, replacing the previous tax on Gross Gaming revenue (GGR). Similarly, online gaming companies also faced the challenge of a 28% GST on total deposit amount which was earlier limited to platform fees even if the amount isnt fully used for gameplay. This has led to a much higher tax load and raised concerns about how Gaming companies can operate smoothly. Supreme Court hearings on the matter have been ongoing for an extended period, and the industry continues to hope for a favorable and timely resolution.

An immediate clarity on this matter is essential, as it would enable Gaming Companies to focus on innovation, explore diversification and adopt growth-driven strategies without the looming risk of retrospective tax demands.

Having stable and predictable regulations would also improve investor trust, attract more funding and help companies consider public listing – giving them more visibility and access to capital. The gaming industry continues to face significant challenges due to regulatory challenges with respect to the impact of the 28% GST regime. Ongoing judicial GST matters and pending casino licenses remain key issues, but with strategic initiatives underway, the sector remains optimistic about overcoming these hurdles and capturing future growth opportunities. Simultaneously, there is a growing need to curb illegal and offshore operators offering prohibited betting and gaming products. Stronger enforcement is required to ensure regulatory compliance and a level playing field for legitimate stakeholders. In line with this, clear guidelines around advertising standards for real-money games are essential – ensuring promotional content is not misleading and remains restricted to legally permitted offerings.

While these regulations emphasise user protection and responsible gaming, they also bring operational challenges. Enforcing restricted hours and Aadhaar-based login protocols may pose technical and compliance hurdles. Furthermore, overly restrictive provisions could impact the overall user experience. These developments underline the importance of finding a balanced regulatory approach – one that protects consumers and promotes ethical gaming practices, without hindering the growth and innovation potential of the industry.

Industry Outlook

The gaming segment will continue to be a key driver of growth within the broader Animation, Visual Effects, Gaming and Comics (AVGC). AVGC sector, steadily generating employment opportunities across every stage of game development and distribution, from design and game art to coding, marketing and user support. Esports and casual gaming are projected to expand at a faster pace, with a 16% CAGR, compared to the transaction-based segment, which is expected to grow at 9% CAGR, provided that illegal offshore betting apps are effectively controlled. Simulation and hyper-casual games draw players from diverse demographics and regions, thanks to their straightforward gameplay mechanics that demand minimal skill and time investment. This ease of access makes them especially attractive to both casual players and newcomers to gaming.

In-app purchases are anticipated to grow at a 20% CAGR from 2025 till 2027, driven by the launch of new titles, increasing demand for immersive gaming experiences in mid-core and hardcore games, the expansion of cloud gaming platforms enhancing accessibility and rising per capita income along with a greater adoption of digital payments.

Industry trends indicate a growing shift toward localised gaming content, catering to Indias diverse audience across multiple languages. The tech advancements will promote skill development, generate employment and drive industry-wide growth. Additionally, niche categories such as educational games, region-specific skill-based games, mythological games and esports are expected to further diversify and enrich the gaming landscape, shaping the future of Indias gaming industry.

HOSPITALITY INDUSTRY

Indias hospitality industry is on a steady growth path, supported by favourable demographics, rising domestic travel, increased investments and improvements in infrastructure and connectivity. As per ICRA, the industrys revenue is expected to grow by 6–8% in FY 2025-26, building on a strong base in FY_ 2023-24. Similarly, CareEdge projects an 8–9% rise in Revenue Per Available Room (RevPAR) for FY 2024-25, following a 14% increase in FY 2023-24. Occupancy levels in premium hotels are also expected to improve, reaching 72–74% by FY 2025-26. This growth is driven by the expansion of domestic tourism, a gradual increase in foreign tourist arrivals and a rise in business travel, particularly in the MICE (Meetings, Incentives, Conferences and Exhibitions) segment. The positive outlook has led to increased investor interest, with many companies adopting asset-light models to scale operations while keeping capital costs low.

Complementing this trend, the global budget hotels market has grown significantly, increasing from US$ 284.83 billion in 2024 to US$ 300.83 billion in 2025 at a 5.6% CAGR, driven by demand for affordable stays during economic downturns, more local travel and improved hotel amenities and digital services. It is projected to reach US$ 370.08 billion by 2029, growing at a 5.3% CAGR, fueled by ongoing economic pressures, higher hygiene standards and more solo and budget travelers. The number of budget hotel establishments in India grew from 11,718 in 2020 to 14,101 in 2023, registering a CAGR of 6.37%. Key trends include AI-powered customer service, personalized tech, wellness features and local experiences. Overall, expanding global travel and rising disposable incomes will continue to increase demand for budget hotels as accessible, value-focused lodging options.

India currently has around 166,000 branded hotel rooms. Over the next five years, around 55,000 more rooms are expected to be added, reflecting a CAGR of 4.5–5.5%. More than 60% of the upcoming supply will be in the Upper Midscale and Midscale Economy segments, driven by a growing middle class, increased Small and Medium Enterprises (SME) travel and expanding commercial activity in smaller cities. There is also a notable geographic shift, with over 70% of new room supply concentrated in Tier 2 and Tier 3 cities, followed by Tier 1 markets. This shift away from traditional metro hubs like Bengaluru, New Delhi and Mumbai reflects efforts to meet rising demand in emerging leisure and religious tourism destinations. Improvements in urban infrastructure and resumed activity on previously delayed projects since FY 2021-22 are further supporting this trend.

Indias hotel industry is witnessing strong and sustained growth, driven by rising domestic leisure travel, expanding business and MICE tourism, increasing disposable incomes and rapid urbanisation. The Indian MICE industry generated US$ 49,402.6 million in 2024 and is projected to reach US$ 103,686.5 million by 2030, growing at a CAGR of 13.2%, with meetings leading in revenue and incentives emerging as the fastest-growing segment. Improved infrastructure – including better air connectivity and highways – is making even tier-2 and tier-3 cities attractive destinations. Simultaneously, the country is gaining momentum as a hub for medical and religious tourism, supported by affordable healthcare and enhanced pilgrimage infrastructure. Government-led tourism campaigns and investments in transportation echo broader national goals of becoming a global tourism powerhouse, similar to how sectors like aviation and wellness are being positioned as growth engines. Despite growing demand, limited new hotel supply is pushing occupancy rates and room tariffs higher, presenting a strong opportunity for expansion across segments.

The long-term outlook for the sector remains positive. The Ministry of Tourism expects Indias travel and tourism sector to grow at 8–9% annually, reaching US$ 500–530 billion by FY 2033-34. With relatively low tourism penetration and continued government support, the sector is well-placed for sustained growth. In the medium term, demand is expected to outpace supply, supporting strong performance for hotel operators.

S o u rc e : h t t p s : / / w w w. c a re r a t i n g s . c o m / u p l o a d s / newsfiles/1727431772_Hospitality_CareEdge%20Report.pdf https://www.businessworld.in/article/fy25-icra-forecasts- 7-9-revenue-growth-for-indian-hospitality-sector-544219 https://www.grandviewresearch.com/horizon/outlook/ mice-market/india https://www.researchandmarkets.com/report/bud get-accommodation?srsltid=AfmBOoqhjsJmuooXpKR0SZ Lm3K3HSTLb-aEs_8GA7vv5LsqPRAHzFWhm

REAL-ESTATE SECTOR

Indias real estate sector continues to mirror the countrys economic optimism, backed by strong government support, infrastructure development and pro-business policies. The Indian residential sector saw significant growth, achieving a 12-year high in annual sales with a 7% YoY increase, reaching 350,612 units in 2024. This growth is especially evident across the top eight cities – Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune – which continue to drive urban housing demand. This surge was primarily driven by a clear shift toward premiumisation, with homes priced above Rs 10 million accounting for nearly half of total sales. Notably, properties in the Rs 20-50 million range witnessed an impressive 62% year-on-year (YoY) growth. The new launches during the year 2024 also saw growth of 6% YoY, by growing to 372,936 units. The unsold inventory also grew by 5% YoY in 2024, growing to 495,839 units during the year.

Evolving buyer preferences, fueled by aspirations for an enhanced lifestyle and confidence in Indias economic trajectory, played a crucial role in this trend.

Developers responded adeptly by launching projects that cater to the increasing demand for premium and luxury living. However, the rising inventory levels in high-ticket segments necessitate careful market monitoring to maintain long-term sustainability.

Indias residential real estate sector in 2025 is experiencing significant growth, driven by government-led initiatives, stable economic policies and increased budgetary support. The Pradhan Mantri Awas Yojana (PMAY) aims to construct an additional 3 crore houses by FY_2028-29, with 2 crore units allocated for rural areas and 1 crore for urban regions. The reintroduction of the Credit Linked Subsidy Scheme (CLSS) is further enhancing housing affordability by offering interest subsidies of up to 6.5% for the Economically Weaker Section (EWS) and Low-Income Group (LIG) categories, thereby reducing monthly loan repayments. Together, these measures are not only accelerating sectoral growth but also reshaping the housing landscape by expanding access and making homeownership more attainable for millions.

This transformation is further evident in the rise of plotted land development and redevelopment projects, which have gained significant momentum in recent years. Driven by rising demand for personalised housing, growing affluence among the middle class and an increasing preference for spacious, independent living, this segment is redefining urban residential preferences. Unlike traditional apartment complexes, plotted developments offer homebuyers the flexibility to design and build customised homes, often within gated communities equipped with premium amenities. This shift in buyer preference reflects a growing desire for more open spaces, better ventilation and a deeper connection to nature.

In FY 2023-24, around 2,252 acres of land transacted were earmarked for residential, plotted and township projects. This underscores the increasing focus of developers on plotted formats. Similarly, a JLL report highlighted that real estate developers acquired nearly 3,294 acres of land between January 2022 and October 2023, much of which is slated for plotted development. Demand for these projects is especially high in metro regions like Mumbai Metropolitan Region (MMR) and Pune, but tier-II and III cities are also emerging as attractive markets due to lower land costs and improved connectivity.

Several factors are contributing to the rising popularity of plotted developments. These include enhanced infrastructure investments by the government, improved road and rail networks and the availability of larger plots in suburban and peri-urban locations. In addition, plotted developments provide buyers with better asset appreciation potential and a sense of long-term ownership. Developers are also creating thematic and sustainable projects that include green zones, urban forests and community-focused layouts.

With a surge in lifestyle aspirations and growing interest in nature-centric and customisable homes, plotted land developments are shaping the future of Indias residential real estate. The market outlook remains optimistic as more developers enter the segment with innovative offerings. The ongoing infrastructure push and rising disposable incomes are likely to further propel this segment, positioning plotted developments as a major driving growth factor for urban and semi-urban housing in the coming years.

Source: https://www.knightfrank.com/research/ report-library/india-real-estate-office-and-residential-market-h2-2024-11800.aspx https://www.financialexpress.com/money/what-is-d r i v i n g - t h e - s u r g e - i n - p l o t t e d - d e v e l o p m e n t s -in-india-3764060/

COMPANY OVERVIEW Company Background

Delta Corp Limited (referred to as "the Company" or "Delta Corp") is a leading player in the Indian gaming industry, with a significant presence in the casino gaming segment. Established in 1990, the Company has evolved into one of the most recognised and organised gaming operators, offering a diverse range of experiences across live and electronic formats.

The Company operates in key casino hubs such as Goa and Sikkim, leveraging both land-based and offshore licenses. Over the years, the Company has developed a strong understanding of consumer behavior across various segments, enabling it to attract, engage and retain a diverse customer base. During the year under review, Delta Corp divested a 51% stake in its skill gaming subsidiary, Deltatech Gaming Limited, to Head Digital Works Private Limited (HDW) for aggregate consideration of Rs 491 crore consisting of cash and share swap. This strategic move led to the merger of Deltatechs online poker platform, Adda52, with HDWs leading rummy business, creating a stronger, integrated card-based gaming platform. Following the transaction, Deltatech Gaming ceased to be a subsidiary of Delta Corp. The partnership positions both companies to navigate regulatory challenges, scale operations and unlock new growth opportunities in Indias real-money gaming industry.

Beyond gaming, Delta Corp has built a notable presence in the hospitality sector, with luxury properties such as the 106-room Deltin Suites hotel in Goa and the 176-room The Deltin Hotel in Daman. These properties complement the Companys gaming operations and enhance its premium customer offerings. The Company enhances the overall gaming experience for its customers by integrating hospitality services into its casino operations. Moreover, in

FY_2024-25, Delta Corp partnered with Alpha Alternatives Fund Advisors LLP and Peninsula Land Limited to launch a Rs 765 crore real estate development platform for residential and plotted projects in Mumbai Metropolitan Region. In FY 2024-25, Delta Corps Board approved the demerger of its Hospitality and Real Estate business into a new entity, aiming to enhance shareholder value, business focus and sector-specific investments. Later Delta Corp has revised its demerger plan to ensure focused development of the Dhargalim Project in Goa, which is still in its early stages and requires significant capital investment. Under the new scheme, the Dhargalim project – including land in Dhargalim, Goa, where an integrated resort with a water park is proposed over 88 acres – will be transferred to Deltin Hotel & Resorts Private Limited (DHRPL). The remaining hospitality and real estate assets will move to DPL. The move aims to streamline operations and optimise financial planning for the projects long-term growth.

Business Segments

Casino Gaming and Hospitality are the Companys two primary business segments.

1. Casino Gaming

Particulars	Description	Key Features
Deltin Royale, Goa	Asias largest offshore gaming vessel, comprising five fully operational decks.	950gamingpositions,120+livegamingtables, 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	Indias 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
Deltin Zuri, Goa	A land-based casino housed within a premium five-star hotel in South Goa.	1,180 sq. ft. casino, 59+ gaming positions
Deltin Denzong, Sikkim	A land-based casino in partnership with Hotel Welcome Heritage starting from FY 2018-19.	200+ gaming positions, A separate VIP gaming area, spread over 15,000 sq. ft.

2. Hospitality

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, 3 swimming pools, with a special kids pool and indoor & outdoor games.
Deltin Suites, Goa	A North Goa hotel comprising exclusively of suites, featuring an integrated expansive casino.	106 rooms, 24*7 Vegas restaurant, Whiskys lounge bar and spa, Caldin-Goan speciality restaurant.

FINANCIAL REVIEW

Consolidated Financials Snapshot

(Rs in Crores)

Year	2024-25	2023-24	YoY change
Casino Gaming	678.60	799.92	-15.17%
Hospitality Division	53.16	50.85	4.54%
Gross Revenue	731.76	850.77	-13.99%
Less: Inter Segment Revenue	2.13	2.50	-14.80%
Net Revenue	729.63	848.27	-13.99%
Other Income	57.08	53.92	5.86%
Total Income	786.71	902.19	-12.80%
EBIDTA	244.17	359.92	-32.16%
Profit before Exceptional items and tax	188.88	293.18	-35.58%
Exceptional Item	213.22	55.66	-
Tax Expenses	84.06	82.70	1.64%
Profit after Tax and Minority Interest	248.99	244.23	1.95%

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 operational resilience and strategic agility in navigating through the year.

The Groups consolidated gross revenue for FY 2024-25 stood at Rs 731.76 Crores, representing a decline of 13.99% YoY as compared to Rs 850.77 Crores in FY_ 2023-24. This contraction was predominantly driven by the Casino Gaming segment, which witnessed a 15.17% YoY decrease, with revenue falling to Rs 678.60 Crores. The decline was attributable to the amendment in GST regulations effective 1^st October 2023, mandating tax on the face value of chips sold instead of Gross Gaming Revenue (GGR). This structural change adversely affected customer spending patterns and increased the effective tax outflow, thereby impacting segmental performance. Furthermore, the previous years revenue base included contributions from our Nepal casino operations, which were not part of the current years portfolio.

In contrast, the Hospitality Division posted a modest yet steady growth of 4.54%, with revenue increasing to Rs_53.16 Crores from Rs 50.85 Crores in the prior year, reflecting the divisions consistent performance and the success of its service-led guest engagement initiatives.

After accounting for inter-segment revenue of Rs_2.13 Crores, the Groups net revenue for FY 2024-25 stood at Rs 729.63 Crores, mirroring the decline in gross revenue.

Other income rose to Rs 57.08 Crores, registering a growth of 5.86% YoY, primarily driven by improved treasury operations and miscellaneous non-operating inflows. Consequently, total income for the year amounted to Rs 786.71 Crores, down 12.80% from the previous years Rs_902.19 Crores.

The Group reported EBIDTA of Rs_244.17 Crores, a decline of 32.16% from Rs_359.92 Crores in FY 2023-24. The EBIDTA margin contracted to 33.46%, from 42.43% in the prior year, primarily due to the revenue shortfall and an uptick in operational costs. 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.

Profit before exceptional items and tax stood at Rs 188.88 Crores, representing a 35.58% reduction over the previous year. This decline was a direct consequence of the lower operating surplus.

The current years results were significantly bolstered by exceptional gains amounting to Rs 213.22 Crores, comprising: a gain of Rs 130.49 Crores on the divestment of a 51% equity stake in Deltatech Gaming Limited (DGL). a fair valuation gain of Rs 81.65 Crores on the retained 49% equity stake in DGL. a gain of Rs 1.08 Crores arising from the strike-off of Delta Offshore Developers Ltd., a wholly-owned, non-material foreign subsidiary.

In comparison, the exceptional item in FY 2023-24 stood at Rs 55.66 Crores and included a gain of Rs 58.79 Crores from the sale of Caravella Entertainment Private Limited, offset by a write-off of Rs 3.13 Crores towards IPO-related expenses. Despite the pressures on operational profitability, the Group reported a stable Profit After Tax and Minority Interest of Rs 248.99 Crores, representing a 1.95% increase over the previous year of Rs 244.23 Crores, driven by higher non-operating and exceptional income. As of 31^st March 2025, the Groups financial position remains fundamentally strong: The Group continues to remain debt-free, underscoring prudent financial stewardship.

Cash and cash equivalents stood at Rs 89.35 Crores, ensuring ample liquidity.

Return on Net Worth (RoNW) for the year was 6.65%, lower than 13.81% in FY 2023-24, due to higher equity base and subdued operational performance.

Key Ratio Analysis

Ratios	2024-25	2023-24	Change (%)
Debtors Turnover	93.60	110.16	-15.03%
Inventory Turnover	3.42	0.63	442.86%
Current Ratio	4.94	3.55	39.15%
Operating	26.64%	35.80%	-25.59%
Profit Margin
Net Profit	34.13%	28.79%	18.55%
Margin (%)
Return on	6.65%	13.81%	-51.85%
Net Worth (RONW)

Ratio Variance Explanations

1. Debtors Turnover: The decline of 15.03% is primarily due to reduced revenue in the Casino Gaming segment following the implementation of revised GST provisions, leading to lower turnover and consequently impacting the efficiency of receivables collection.

2. Inventory Turnover: The significant increase of 442.86% is due to the reclassification of Tonca project inventory to Property, Plant & Equipment (PP&E) during FY 2023-24, which lowered average inventory and led to improved turnover in the current year.

3. Current Ratio: The improvement of 39.15% is attributable to efficient working capital management and maintenance of a healthy liquidity position, with an increase in current assets relative to current liabilities.

4. Operating Profit Margin: Decline of 25.59% reflects the combined effect of lower revenue, increased operational costs and higher spending on marketing and customer re-engagement activities, particularly in response to the GST-driven drop in footfall.

5. Net Profit Margin: Despite weaker operational performance, net profit margin improved by 18.55% due to exceptional gains from the sale and revaluation of Deltatech Gaming Ltd., boosting overall profitability for the year.

6. Return on Net worth: The decline of 51.85% is a result of reduced operating profits and an increase in equity base, including retained earnings and unrealised gains, which diluted 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: Inventory Turnover 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: The Current 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 (%): The Operating Profit 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 (%): The Net Profit 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

We, at Delta Corp, continue to drive strategic diversification and expansion across its key business verticals. The Company is leveraging its expertise in redevelopment and quick-turnaround projects to strengthen its presence in the real estate sector, capitalising on its growth potential. Delta Corp remains committed to a prudent investment approach aligned with the promoter groups deep-rooted experience, reinforcing confidence in generating long-term value.

The Company anticipates a steady recovery to pre-existing performance levels in the casino and hospitality segments over the coming periods. Delta Corp expects growth to be driven by the launch of a new gaming vessel and the addition of a new hotel, both of which will enhance operational efficiencies and profitability.

Delta Corp is well-positioned to execute its growth strategies, backed by a strong financial foundation and healthy reserves. The Company has carefully evaluated its strategic expansion into real estate and, with its extensive experience, remains confident in delivering sustainable value through its diversified ventures.

Delta Corp remains focused on navigating GST challenges, including tax demands based on gross bet value, while advocating for a fairer taxation framework. The Company has implemented cost-management measures, to ensure operational efficiency. We continue to engage with industry bodies and explore legal avenues to mitigate tax-related risks. The Companys planned demerger and strategic expansion will further enhance resilience and unlock shareholder value.

KEY RISKS & MITIGATION STRATEGIES

The Company has a robust risk mitigation plan in place to proactively identify, assess and address potential risks across its operations. As part of its commitment to strong governance and regulatory adherence, the Company has also implemented a comprehensive compliance management tool to effectively monitor, manage and track all statutory and regulatory compliances. This digital solution enhances visibility, ensures timely adherence to legal requirements and supports informed decision-making, thereby strengthening the Companys overall risk management framework.

Risks Associated with Mergers and Acquisitions:

Mergers and acquisitions involve integrating different business operations, which may bring uncertainties and operational challenges. Poor management of these aspects can affect the Companys financial health, business performance and cash flow.

Mitigation: Delta Corp has consistently demonstrated its ability to identify and execute strategic acquisitions and investments. The Company applies a well-defined and systematic evaluation process to maintain objectivity in decision-making. Each acquisition proposal is carefully reviewed and approved by the Board, following clear criteria, which helps minimise the risk of misalignment or execution challenges.

• External Event Risks: The Company is vulnerable to sudden disruptions such as geopolitical instability, new pandemic outbreaks, or other unforeseen events. These situations can impact overall operations, especially in the hospitality segment, which is sensitive to changes in travel trends.

Mitigation: Delta Corp has built a strong presence as a gaming and hospitality brand in India. The rise in operational revenue and other income reflects growing engagement from both new and existing players. The Company remains equipped to handle unexpected challenges, with management continuously monitoring economic trends and emerging risks.

• Regulatory Compliance Risk: The Company may be affectedbystricterregulatoryoversightoradversepolicy changes in key operational areas. Non-compliance or breaches of regulations could result in penalties, including license suspension, revocation, fines, or legal action. In FY 2023-24, the Indian government issued substantial GST demand notices to gaming companies, primarily taxing the gross bet value instead of actual earnings, prompting industry stakeholders to seek a fairer tax framework.

Mitigation: The Company maintains a disciplined approach to regulatory compliance, with statutory requirements closely monitored and managed by the leadership team.

• Inflationary Pressure Risk: A rise in inflation, particularly wage inflation, can lead to increased human capital costs – one of the Companys key expenses. Additionally, higher inflation may impact consumer purchasing power, potentially affecting customer spending on leisure and gaming.

Mitigation: Delta Corp manages workforce costs through long-term employment contracts, ensuring cost predictability and stability. The Company places strong emphasis on attracting, developing and retaining a skilled and diverse workforce, aligning employee growth with business goals. High retention is supported by competitive compensation, structured training and employee engagement practices. While inflation and broader economic uncertainties persist, the gaming and casino sector continues to benefit from a rebound in leisure spending, positioning Delta Corp to navigate these challenges effectively.

• Competitive Landscape Risk: The Company operates in a dynamic industry facing competition from both new entrants and established players. Innovations in technology or shifts in competitor strategies, such as marketing or product offerings, could pose significant challenges to market share and growth.

Mitigation: Delta Corp has established a strong brand presence and holds a leadership position in the gaming sector. The Company is recognised for its high-quality content, skilled talent, advanced technology infrastructure and expertise in data analytics. Its broad range of offerings and commitment to delivering a superior user experience have strengthened its market position. To maintain this edge, Delta Corp continues to enhance customer engagement through fresh content, expanded services and strategic use of social media platforms.

• Geographic Dependence Risk: Heavy reliance on a specific region for business operations may impact profitability if that area experiences economic, regulatory, or market disruptions. Delta Corp is exposed to such risk due to its concentration of operations in select locations.

Mitigation: Delta Corp continues to focus on gaming and gaming-led hospitality while strategically expanding its footprint across key markets through new properties, enhanced customer experiences and digital innovations aimed at strengthening its leadership position in the industry.

INTERNAL CONTROLS

Delta Corp has a well-structured internal control system that ensures efficient operational management, asset protection and regulatory compliance. The Company establishes and maintains internal controls aligned with the scale and complexity of its operations, conducting regular assessments across all business functions. Management and Internal Auditors perform periodic reviews, while the Audit Committee scrutinizes their findings, with the Board recognising audit reports as an impartial validation of operational efficiency and business integrity. The Company actively ensures the continued effectiveness of its internal controls by taking timely corrective actions, overseeing investigations and implementing decisive measures to address risks and resolve emerging issues.

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.