Davangere Sugar Company shares rose 4% after announcing strong Q4FY25 results and plans to expand ethanol production by scaling up maize procurement, supported by government initiatives and farmer outreach programs for sustainable and long-term growth.
On Monday, the share price of Davangere Sugar Company Limited jumped 4% to an intraday high of ₹3.82. As of 11:08 am IST, the stock is trading at ₹3.74, up by 2.46% as the company announced its Q4FY25 results along with the plans of scale procurement.
Davangere Sugar share price is moving higher despite the prevailing negative sentiment in the market. Let’s find out what’s driving the stock's upward trend
Davangere Sugar Company Limited, a small-cap firm established in 1970, had released its unaudited financial results for the quarter and financial year ended 31 March 2025. Known for diversifying beyond traditional sugar production, the company is making notable strides in ethanol and sustainable power initiatives.
In the March 2025 quarter, Davangere Sugar recorded a total income of ₹57.48 crore and reported a profit before tax of ₹2.25 crore. The quarterly EBITDA stood at ₹10.25 crore, highlighting operational efficiency and sound cost control. For the full year, the company achieved revenue from operations of ₹216.76 crore, with a Profit After Tax (PAT) of ₹10.83 crore. Full-year EBITDA rose by 8% year-on-year, reaching Rs 53.75 crore, reflecting a steady growth trajectory.
To enhance its ethanol segment, the company plans to scale up maize procurement, in line with supportive government policies encouraging ethanol production from alternative feedstocks like maize. A proposed central initiative to create a National Coordinating Agency under NAFED is anticipated to secure year-round maize availability, benefiting ethanol-producing units such as Davangere Sugar.
In a move to secure raw materials and uplift local communities, the company has launched farmer outreach programs. These include subsidised sugarcane seeds, affordable agricultural inputs, and plantation subsidies. Targeting cultivation on nearly 15,000 acres in the upcoming season, the company aims to extend sugarcane farming into non-traditional areas, boosting supply stability and rural livelihoods.
With a processing capacity of 6,000 TCD for sugarcane, a 65 KLPD ethanol facility, and a 24.45 MW cogeneration power plant, Davangere Sugar is well-positioned in terms of infrastructure. It also operates five large warehouses, offering a combined storage space of 60,000 tonnes, which supports its distribution and inventory efficiency.
Headquartered in Kukkuwada, Karnataka, the company remains focused on sustainability, zero-waste processes, and regional development. Its commitment to green energy and local employment underscores its broader role in driving innovation and social impact.
Disclaimer: This article is meant solely for informational purposes and does not constitute investment advice.
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