India’s Supreme Court has upheld an earlier court ruling on gaming companies, triggering a sharp sell-off in related stocks on Friday. Delta Corp Ltd. was among the hardest hit, with its shares falling as much as 16.04% in early trade to a low of Rs 68. The stock was last seen down 11.56% at Rs 71.63. Despite the decline, Delta Corp had gained 17.07% over the previous three months before the latest setback.
The market reaction came after the Supreme Court upheld the constitutional validity of the 28% Goods and Services Tax (GST) imposed on online gaming companies and also backed tax demands of more than Rs 1 lakh crore. The court said online gaming platforms cannot be treated merely as intermediaries and held that such activities fall within the scope of actionable claims under GST law. It also said the 28% tax levy was valid and could be applied retrospectively.
The verdict was widely seen as a major blow for online gaming firms, many of whose shares fell sharply after the decision. Along with Delta Corp, shares of Nazara Technologies Ltd. also declined. According to NSE data, Nazara Technologies was trading 1.52% lower at Rs 285.10. Shares of One Mobikwik also weakened in the broader reaction across the sector.
Delta Corp’s latest quarterly numbers added to investor caution. For the March 2025 quarter, the company reported a steep 90% year-on-year drop in consolidated net profit, which fell to Rs 16.45 crore. Revenue from operations also declined 11.72% year on year to Rs 161.25 crore. The company additionally reported an exceptional loss of Rs 5.51 crore during the quarter.
On a quarterly basis, revenue in the December 2025 quarter was Rs 160.28 crore, compared with Rs 160.28 crore in the same period a year earlier, reflecting a marginal increase of 15.19%. Total expenditure in the fourth quarter of FY2026 fell 3.16% to Rs 149.19 crore from Rs 154.06 crore in the corresponding period last year.
The Supreme Court’s ruling is expected to have wider implications for the online gaming industry, especially companies facing large GST-related liabilities. The decision has intensified concerns over profitability, taxation, and regulatory risk in the sector, leading to pressure on gaming and casino-related stocks. Investors are likely to remain cautious until the full financial and legal impact of the verdict becomes clearer.
