Author: Nishtha Mehrotra | EQMint
Davangere Sugar shares rose 6.54% to ₹2.28 during Tuesday’s intraday session, putting the spotlight on the company’s sugar, ethanol and power-generation operations.
The company reported FY26 revenue from operations of ₹238.77 crore, up 11.1% from ₹214.99 crore in FY25. EBITDA stood at around ₹50.7 crore, while profit after tax was ₹8.51 crore. Distillery operations contributed the largest share of revenue at approximately ₹133.54 crore.
Davangere currently operates an ethanol facility with capacity of around 150 KLPD and has outlined plans to expand its distillery operations. The company has also established Aurevant Global Limited, a wholly owned UK subsidiary intended to pursue international opportunities in sugar and ethanol.
Funding remains an important consideration. Davangere raised US$100 million through FCCBs, with US$10 million already converted into equity, resulting in the allotment of around 26.59 crore shares. A further conversion of the outstanding FCCBs could increase the equity base and dilute existing shareholders.
Investors will be watching capacity expansion, cash-flow generation, margins and the execution of its international expansion strategy.
Disclaimer: This article is for information purposes only and is not investment advice.
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