Shares of Davangere Sugar Company Limited are in action even as benchmark indices Sensex and Nifty traded flat amid escalation in tensions in the Middle East. The action comes amid optimism over ethanol blending and rising crude oil prices, which have stayed well above USD 100 per barrel. The shares of the FMCG sector company opened in the red to hit a fresh 52-week low of Rs 1.74. However, it regained and touched the intraday high of Rs 1.92, a gain of 7.86 per cent from the previous close of Rs 1.78 on the BSE. Last seen, the stock traded at Rs 1.91, up 7.30 per cent, and the company’s market cap stood at Rs 274.56 crore.
What’s behind the rally?
The action in the stock comes amid a rally in crude oil prices. A jump in Brent crude is likely to support the demand for ethanol blending. Experts expect companies like these to benefit, as they produce ethanol during sugar production. These companies use sugar mills to produce ethanol, an additional business they run alongside sugar production.ย
Quarterly resultsย
The company’s performance for the fiscal year 2025-26 (FY26) showed revenues growing 11.1 per cent to Rs 238.8 crore. EBITDA stood at Rs 50.7 crore, with an EBITDA margin of 21.2 per cent. The distillery segment became the company’s largest revenue source during this period, generating Rs 133.5 crore. The sugar segment generated revenues of Rs 98.9 crore and co-generation revenues of Rs 7.1 crore.
The company’s growth accelerated in the first quarter of fiscal year 2026-27, i.e., Q1 FY27. Revenue increased 44.2 per cent year-on-year to Rs 34.7 crore in this quarter. The distillery segment’s PBIT, or profit from operations, was Rs 15.8 crore. Operating leverage is also showing promise in the company’s performance, meaning that as sales increase, the company’s profitability relative to costs is increasing.
Mauritius Fund buys 5 crore shares
Earlier, Mauritius-based institutional fund Craft Emerging Market Fund has bought five crore shares of Davangere Sugar Company for over Rs 18 crore through a bulk deal.
As per the bulk deal data on the NSE, craft Emerging Market Fund through its two affiliates – Craft Emerging Market Fund PCC – Citadel Capital Fund and Craft Emerging Market Fund PCC – Elite Capital Fund purchased 2.5 crore shares of Davangere Sugar each.
ALSO READ:
ย