Davangere Sugar Company

Davangere Sugar Company submitted its monitoring agency report for Rs. 149.19 crore rights issue proceeds utilization for the quarter ended September 30, 2025, with CARE Ratings noting a minor deviation of Rs. 0.01 crore held in non-scheduled bank account. The company utilized funds for debt repayment (Rs. 66.99 crore), unsecured loan adjustments (Rs. 44.25 crore), general corporate purposes (Rs. 32.70 crore), and issue expenses (Rs. 1.90 crore) as per board approvals.

Davangere Sugar Company Limited announced unaudited financial results for the quarter and half year ended September 30, 2025, showing total income of Rs 4,876.98 lakhs for the quarter with net profit after tax of Rs 262.99 lakhs. The company's distillery segment contributed significantly with Rs 4,402.78 lakhs in revenue while sugar operations generated Rs 387.89 lakhs, reflecting the seasonal nature of the sugar industry.

Davangere Sugar Company Limited has announced growth-oriented expansion plans following its rights issue completion. The company plans to increase ethanol distillery capacity from 65 KLPD to 85 KLPD within this financial year, with further expansion to 110 KLPD planned for the next phase. The expansion includes establishing a 35 TPD CO₂ recovery plant and diversifying into broken rice and maize procurement along with grain trading operations. The company is implementing farmer-engagement initiatives including mechanised harvesting, contracted labour teams, enhanced transport logistics and subsidies to achieve annual cane crushing targets exceeding 5 lakh metric tonnes. Executive Director Abhijith G Shamanur stated the initiatives will enhance revenues, profitability and shareholder value through an integrated approach. Chairman Ganesh Shivashankarappa Shamanur described the expansion as a significant milestone aligning with India's energy transition priorities. The company operates a 4,750 TCD crushing capacity facility, 24 MW co-generation power plant, and follows a zero-waste philosophy across its integrated sugar, ethanol and renewable power operations.