Gaming
Delta Corp to merge subsidiary Deltatech Gaming with Head Digital Works
MUMBAI: The casual dating is resulting in wedding wows. Delta Corp Ltd, India’s leading listed casino and gaming company, has agreed with Head Digital Works Pvt Ltd (Head Digital) for the acquisition of Deltatech Gaming Ltd (DGL), which operates the online poker platform Adda52, by Head Digital, which runs the online rummy and poker platform A23.
The transaction, valued at approximately Rs 491 crore, will take place in two phases: an initial acquisition of a 51 per cent stake in DGL by Head Digital, followed by a merger of DGL with Head Digital.
Upon completion of the merger, Delta Corp will hold a 5.7 per cent stake in Head Digital. Adda52 is among India’s oldest online poker platforms, while Head Digital, a pioneer in online gaming, operates A23 Rummy, one of India’s largest real-money rummy platforms with over 75 million users.
Delta Corp managing director Ashish Kapadia commented: “We are excited about this journey with Deepak and his team, whose leadership has been instrumental in shaping India’s online rummy market. We believe this transaction will strengthen Adda52’s leading position in the online poker sector.”
Head Digital founder and chief executive officer Deepak Gullapalli said: “Head Digital is a pioneer in India’s online gaming industry, and we are thrilled to collaborate with one of the country’s most recognised poker brands, Adda52. This deal will enhance our poker business and help us build a leading diversified card gaming platform.”
The acquisition of 51 per cent of DGL by Head Digital is expected to be completed by 6 April 2025, at which point DGL will cease to be a subsidiary of Delta Corp. The subsequent merger of DGL with Head Digital is subject to approvals from the shareholders of both companies and the National Company Law Tribunal and is expected to be finalised by 30 June 2026.
The transaction assigns an enterprise value of approximately Rs 491.26 crore to DGL. Head Digital’s 51 per cent stake in DGL will be acquired through a combination of primary subscription and secondary acquisition from Delta Corp, for a total cash consideration of Rs 34.8 crore and an equity swap in Head Digital. Delta Corp is set to acquire approximately 2.8 per cent of Head Digital’s shareholding by 6 April 2025, increasing to 5.7 per cent upon completion of the merger.
For the financial year ending 31 March 2024, on a standalone basis, DGL reported revenue of Rs 92.93 crore, contributing 13.77 per cent of Delta Corp’s total income. On a consolidated basis, its revenue stood at Rs 92.93 crore, representing 9.46 per cent of Delta Corp’s total income. The company’s net worth stood at Rs -3.48 crore.
Head Digital reported an annual turnover of Rs 841.39 crore in FY 2023-24, with a net worth of Rs 880.99 crore. In the previous financial years, its turnover was Rs 839.13 crore in FY 2022-23 and Rs 721.89 crore in FY 2021-22.
The transaction is subject to customary conditions, including shareholder approvals. Delta Corp and Head Digital have provided mutual representations, warranties, and indemnities within agreed financial caps. Delta Corp has also agreed to a five-year non-compete and non-solicitation clause following Head Digital’s acquisition of the 51 per cent stake in DGL. As a minority shareholder in Head Digital, Delta Corp will be subject to restrictions on dealing with its shares and will receive customary minority shareholder rights.
Indium Capital Advisors acted as the exclusive investment banking advisor, with legal counsel provided by AZB & Partners for Delta Corp and Spice Route Legal for Head Digital.
Gaming
Bluestone FY26 revenue rises to Rs 2,436 crore, turns profitable
Q4 profit at Rs 31 crore, full-year profit at Rs 13 crore vs loss last year.
MUMBAI: From sparkle to numbers, Bluestone seems to be polishing more than just jewellery this year. Bluestone Jewellery and Lifestyle Limited reported a sharp turnaround in FY26, with revenue from operations rising to Rs 2,436 crore (Rs 24,364 million), up from Rs 1,770 crore (Rs 17,700 million) in FY25. The company posted a full-year profit of Rs 13 crore (Rs 131.79 million), a significant recovery from a loss of Rs 222 crore (Rs 2,218 million) a year ago.
Total income for the year stood at Rs 2,486 crore (Rs 24,860 million), compared to Rs 1,830 crore (Rs 18,300 million) in the previous year, reflecting both topline growth and improved operational momentum.
The March quarter, however, told a more nuanced story. Revenue from operations came in at Rs 681 crore (Rs 6,814 million), down from Rs 748 crore (Rs 7,486 million) in the year-ago period, though higher than Rs 461 crore (Rs 4,613 million) in the preceding December quarter. Net profit for Q4 stood at Rs 31 crore (Rs 311.81 million), compared to Rs 68 crore (Rs 688 million) a year earlier, but a clear reversal from a loss of Rs 51 crore (Rs 512 million) in Q3.
Margins were shaped by higher input costs, with raw material consumption rising to Rs 2,204 crore (Rs 22,043 million) for the full year, alongside employee benefit expenses of Rs 282 crore (Rs 2,824 million) and finance costs of Rs 210 crore (Rs 2,104 million). Other expenses came in at Rs 371 crore (Rs 3,715 million), slightly lower than Rs 393 crore (Rs 3,938 million) in FY25.
On the balance sheet front, total assets expanded to Rs 4,961 crore (Rs 49,610 million) as of March 31, 2026, from Rs 3,532 crore (Rs 35,322 million) a year earlier, driven largely by a surge in inventories to Rs 2,672 crore (Rs 26,718 million). Equity also strengthened to Rs 1,803 crore (Rs 18,030 million), nearly doubling from Rs 911 crore (Rs 9,107 million).
Cash flows reflected the cost of growth. Net cash used in operating activities stood at Rs 199 crore (Rs 1,990 million), while investing activities saw an outflow of Rs 239 crore (Rs 2,392 million). Financing activities, however, generated Rs 497 crore (Rs 4,971 million), helping the company end the year with cash and cash equivalents of Rs 108 crore (Rs 1,075 million), up from Rs 49 crore (Rs 487 million).
Earnings per share for FY26 came in at Rs 1.10, a sharp improvement from a negative Rs 79.74 in FY25, underlining the shift from losses to profitability.
With revenue scaling up, costs still glittering on the higher side, and profitability finally back in the black, BlueStone’s FY26 performance suggests a business mid-transition less about shine alone, and more about sustaining it.
