Delta Corp Limited

Consumer Cyclical — Resorts & Casinos · NSE

₹80.85+₹1.13 (+1.42%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Delta Corp Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Delta Corp Limited, together with its subsidiaries, operates in the gaming and entertainment, and hospitality businesses in India and internationally. It operates through Casino Gaming, Hospitality, and Real Estate segments.

IndustryResorts & Casinos

SectorConsumer Cyclical

Employees2,016

Annual revenue₹688 Cr

How does it make money?

Turns over ₹688 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 2,016 employees supports ₹34.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹34.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -29% while net margin moved -54% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-29%

Margin effect-54%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.6% a year
✗ Profit has declined at 31.2% a year
✗ Profit fell 65.7% in the latest year

Quality vs. Valuation

Company Quality

34/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

44/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

14.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 27% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.8% to 3.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 14.6% to 5.1% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.17x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 16.6 points, from 38.7% to 22.1%.
🟡Profit is decliningFinancial
Net profit is down 67% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 27% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 38.7% to 22.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 2.17x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 11.8% to 3.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 22.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹118 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 5.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 2 neutral · 8 weak

Market Cap

₹2,165 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.97x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-5.85

Loss-making

Negative earnings per share — the business is losing money

ROE

3.8%

Weak

Weak capital efficiency

ROCE

5.1%

Weak

Low return on total capital employed

Debt/Equity

2.17x

High

High leverage

Revenue Growth (YoY)

-8.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-65.7%

Falling

Profits are shrinking

Dividend Yield

0.62%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹118 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

12.2%

Average

Average margins

Net Margin

-23.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.13

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

75.9 / 65.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹964 Cr	₹848 Cr	₹730 Cr	₹688 Cr	-10.6%
EBITDA	₹373 Cr	₹334 Cr	₹300 Cr	₹152 Cr	-25.8%
EBITDA Margin	38.7%	39.4%	41.1%	22.1%	—
PAT (Net Profit)	₹261 Cr	₹244 Cr	₹249 Cr	₹85 Cr	-31.2%
EPS	₹9.75	₹9.12	₹9.3	₹3.19	-31.1%
ROE	11.8%	9.7%	9.3%	3.8%	—
ROCE	14.6%	13.8%	14.7%	5.1%	—
Total Debt	₹68 Cr	₹52 Cr	₹35 Cr	₹49 Cr	-10.1%
Free Cash Flow	₹35 Cr	-₹41 Cr	-₹164 Cr	-₹118 Cr	—

🔴 Revenue has shrunk at 10.6% a year over 3 years.

🔴 EBITDA has shrunk at 25.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 38.7% to 22.1% over 3 years (-16.6 pts).

🔴 PAT (Net Profit) has shrunk at 31.2% a year over 3 years.

🔴 EPS has shrunk at 31.1% a year over 3 years.

🔴 ROE has fallen from 11.8% to 3.8% over 3 years (-8.0 pts).

🔴 ROCE has fallen from 14.6% to 5.1% over 3 years (-9.5 pts).

🟢 Total Debt has shrunk at 10.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹35 Cr to -₹118 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,574 Cr

Total Liabilities

₹322 Cr

Cash & Equivalents

₹76 Cr

Operating Cash Flow

₹135 Cr

Capex

-₹253 Cr

Shareholding (proxy)

Institutional Holding

1.0%

Insider Holding

34.5%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

17 Aug 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

DELTACORP Outlook for the Week

Equitypandit, 09 Oct

Delta Corp and Upper Circuit - Soar Over 12% During Intraday Trade

Groww, 28 Sept

Delta Corp receives ₹3.07 crore GST demand and penalty for Deltin Denzong

scanx.trade, 18 Oct

Delta Corp shares zoom 19%, approach 52-week high; here's why

Business Today, 05 Oct

Delta Corp Ltd. Share Price Update: Fundamentals, Peer View

Univest, 23 Sept

Delta Corp (DELTACORP.NS) Rallies 8.27% to ₹85.2 as Gaming Counter Catches a Bid - PCR Spike

https://www.siam.in/, 30 Sept

Watch Items

Revenue growth is negative (-8.5%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑