Davangere Sugar Company

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.

Davangere Sugar Company Limited held a virtual group meeting with analysts and institutional investors on August 19, 2025, from 4:00 PM to 5:00 PM with a Q&A session. The company confirmed no unpublished price sensitive information was shared. The company operates as a fully integrated sugar, ethanol, and renewable power manufacturer in Karnataka with sugar capacity of 4,750 TCD, ethanol capacity of 65 KLPD, and co-generation capacity of 24.45 MW. For FY25, the company reported revenue of ₹21,498.53 lakhs, EBITDA of ₹5,227.90 lakhs, and PAT of ₹1,083.11 lakhs. The company is proposing a rights issue of up to ₹14,921.80 lakhs at ₹3.05 per equity share with a ratio of 13 shares for every 25 shares held. The rights issue opens on August 14, 2025, and closes on August 29, 2025, with proceeds intended for loan repayment and general corporate purposes. The company is expanding ethanol capacity to 85 KLPD and plans to increase sugarcane cultivation by 15,000 acres.

Davangere Sugar Company Limited's board approved unaudited financial results for the quarter ended June 30, 2025, showing revenue from operations of Rs. 2,407.01 lakhs and net profit of Rs. 130.42 lakhs. The company reported earnings per share of Rs. 0.14. In management changes, Mr. Anandan Palaniappan resigned as General Manager - Distillery citing personal grounds, while Mr. Sheshagiri Rao was appointed to the same position. Mr. Rao brings 19 years of distillery industry experience and holds qualifications in Industrial Fermentation & Alcohol Technology. The distillery segment contributed Rs. 2,353.90 lakhs to quarterly revenue, representing the largest business segment.