Arihant Capital Markets Limited has disclosed a substantial acquisition of shares in Davangere Sugar Company Limited, increasing its stake through open market transactions. The acquisition was completed on January 20, 2026, and disclosed under SEBI regulations governing substantial share acquisitions.

Share Acquisition Details

The financial services company acquired 10,588,445 shares of Davangere Sugar Company, representing 0.74% of the total voting capital. This transaction was executed through open market purchases, demonstrating institutional interest in the sugar manufacturing company.

Shareholding Position Changes

The acquisition significantly altered Arihant Capital's ownership position in Davangere Sugar Company. Prior to this transaction, the company held 70,182,674 shares, representing 4.91% of the total voting capital.

Regulatory Compliance

The disclosure was made pursuant to Regulation 29(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Arihant Capital Markets confirmed it does not belong to the promoter or promoter group of Davangere Sugar Company. The company's PAN is AABCA6832G, and the disclosure was signed by Company Secretary Mahesh Pancholi.

Target Company Information

Davangere Sugar Company Limited maintains its equity share capital at ₹142,99,90,798, comprising equity shares of ₹1.00 each. The company's shares are listed on both the National Stock Exchange of India Limited and Bombay Stock Exchange of India Limited. The total diluted share capital remains unchanged at the same level following this acquisition.

This acquisition demonstrates continued institutional interest in the sugar sector, with Arihant Capital Markets positioning itself as a significant stakeholder in Davangere Sugar Company's equity structure.

Davangere Sugar Company has reported a robust performance for the second quarter, with significant growth in both revenue and profitability.

Financial Highlights

• Net Profit: Doubled to ₹26.30 crore from ₹12.90 crore year-on-year
• Revenue: Increased by 22.5% to ₹481.90 crore from ₹393.30 crore
• EBITDA: Grew to ₹153.70 crore from ₹146.10 crore
• EBITDA Margin: Compressed to 31.89% from 37.15% in the same period last year

Segment-wise Performance

The company's performance across different segments is as follows:

Key Observations

1. Distillery Segment Dominance: The distillery segment emerged as the primary revenue driver, contributing ₹4,402.78 crore to the total revenue.

2. Sugar Segment Performance: Despite lower revenue, the sugar segment showed a significant profit of ₹498.40 crore.

3. Aviation Segment Growth: The aviation segment, while smaller, demonstrated profitability with a positive contribution to the company's results.

4. Margin Pressure: The compression in EBITDA margin from 37.15% to 31.89% suggests increased operational costs or pricing pressures in the market.

5. Balance Sheet Strengthening: The company's balance sheet shows an increase in total assets to ₹77,317.90 lakh as of September 30, up from ₹74,256.93 lakh on March 31.

6. Equity Expansion: There has been a substantial increase in the paid-up equity share capital to ₹14,299.91 lakh from ₹9,408.45 lakh.

The company's performance reflects its ability to navigate market challenges while capitalizing on opportunities across its diverse business segments. The significant growth in net profit, despite a compressed EBITDA margin, suggests effective cost management and potentially favorable market conditions in key segments.