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Davangere Sugar Company Limited (DAVANGERE)

₹2.06 -2.83% last close, 16 Oct

📊 NSE: DAVANGERE 🏢 Sugar 📢 Latest filing: 14 Oct 2026 📝 Analysis written: 13 Dec 2025

Latest quarterly results (Q1 FY27)

In its latest reported quarter, Q1 FY27, Davangere Sugar's revenue was ₹34.7 Cr (+44.2% year on year, -58.6% on the previous quarter), and net profit ₹0.9 Cr (-28.0% year on year); the operating margin was 32.1%.

Q1 FY27 (₹ Cr)	Value	YoY vs Q1 FY26	QoQ
Revenue	₹34.7	+44.2%	-58.6%
Operating profit	₹11.2	-2.0%	+32.2%
Net profit	₹0.9	-28.0%	-51.9%
EPS (₹)	0.01	-95.0%	-30.0%
Operating margin	32.1%	—	—

Full quarterly financials → Results calendar →

DAVANGERE delivery percentage

NSE end-of-day data for Fri, 16 Oct 2026

On Fri, 16 Oct 2026, 65.04% of the DAVANGERE shares traded on NSE were taken to delivery, against the stock's own 20-session average of 58.23%. That is close to its usual level. Volume was 0.5 times its average, well below normal. It closed at a price band (circuit) on 1 session in about the last 20.

65.04%Delivery, 16 Oct

58.23%Own 20-session average

0.5×Volume vs its average

₹2.06NSE close · -2.83%

Delivery in the last 5 sessions: 54.1% · 77.0% · 73.7% · 61.3% · 65.0%

Delivery across the market →Circuit stocks →

A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed

📢 Recent Corporate Announcements

Davangere Sugar Submits Demat Compliance Certificate for Q2 FY27

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 14 Oct 2026, 12:39 PM

Davangere Sugar Company Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate from Registrar and Share Transfer Agent Integrated Registry Management Services confirms dematerialization activities for the quarter ended September 30, 2026. All certificates received for dematerialization were processed, mutilated, and cancelled within the prescribed 15-day period. This is a standard quarterly administrative filing with no financial or operational impact.

Compliance submitted under Regulation 74(5) for the quarter ended September 30, 2026
RTA confirmation certificate issued on October 8, 2026
Share certificates dematerialized and cancelled within the statutory 15 days limit

💡 No action required. Investors should track upcoming Q2 FY27 earnings results and operational updates from the company.

Davangere Sugar Issues Corrigendum for ₹40.12 Cr Warrant Conversion to Promoters Following NSE Query

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 07 Oct 2026, 07:10 PM

Davangere Sugar Company Limited has issued a corrigendum to its 55th AGM notice following observations from the NSE regarding its proposed preferential issue. The company is clarifying that 10,64,11,079 convertible warrants at ₹3.77 per warrant (aggregating ₹40.12 Cr) issued to promoters are for consideration in cash discharged via conversion of outstanding unsecured loans, rather than consideration other than cash. The corrigendum also confirms the allottees' promoter status without reopening voting. Converting ₹40.12 Cr of debt into equity warrants reduces balance sheet obligations relative to its total debt of ₹250 Cr.

Corrigendum clarifies the preferential issue of up to 10,64,11,079 convertible warrants at ₹3.77 each.
Total value of the warrant conversion is ₹40,11,69,768.24 against outstanding unsecured promoter loans.
Corrects the classification to 'consideration in cash' discharged via loan conversion pursuant to NSE letter dated October 01, 2026.
Special Resolution Item No. 8 was previously passed at the AGM on September 12, 2026, with 99.76% votes in favour.

💡 Monitor receipt of final in-principle listing approvals from NSE and BSE, followed by eventual allotment and equity dilution upon warrant conversion.

Davangere Sugar Shareholders Approve Preferential Warrants to Promoter and Overseas Investments

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 15 Sep 2026, 10:55 PM

Davangere Sugar Company Limited has submitted the Scrutinizer's Report for its 55th Annual General Meeting held on September 12, 2026. Shareholders approved all agenda items, including an increase in authorized share capital and alteration of the capital clause with 99.88% approval (521,630,173 votes in favor). Notably, the special resolution to issue convertible equity warrants on a preferential basis to promoters received 94.42% favorable votes (7,450,428 votes in favor, with promoter votes largely abstained/excluded). Approvals were also granted for inter-corporate loans/investments under Section 186, investments in overseas subsidiaries, and material related-party transactions.

Increase in authorized share capital approved with 521,630,173 votes in favor (99.88%)
Issuance of convertible equity warrants on preferential basis to promoter approved with 7,450,428 votes in favor (94.42%)
Section 186 loan and investment limits approved with 521,630,173 votes in favor (99.88%)
Material related-party transactions approved with 521,625,674 votes in favor (99.87%)

💡 Track subsequent exchange filings for the pricing, conversion terms, and dilution details of the preferential convertible warrants to promoters, as well as operational updates on planned overseas subsidiary investments.

Davangere Sugar Holds 55th AGM; Tables 10.64 Cr Warrant Issue and $100M Overseas Limits

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 12 Sep 2026, 01:32 PM

Davangere Sugar Company Limited concluded its 55th Annual General Meeting (AGM) on September 12, 2026, attended by 340 members. Key agenda items placed before shareholders included approving the issuance of 10,64,11,079 convertible equity warrants to the Promoter Group via debt-to-equity conversion, and approving overseas investments up to USD 100 million. Other notable proposals included material related-party transactions and asset dilution involving overseas subsidiary Aurevant Global Limited. Detailed voting results under Regulation 44(3) will be declared within two working days.

AGM concluded with 340 members in attendance on September 12, 2026
Special resolution tabled for 10,64,11,079 convertible equity warrants to Promoter Group via loan conversion
Special resolution tabled to approve overseas investments and guarantees up to USD 100 Million
Ordinary resolution put forward for material related-party transactions with Aurevant Global Limited

💡 Track the upcoming Regulation 44 voting results within 2 working days to confirm if the 10.64 Cr warrant issue and USD 100M investment limits were approved by public shareholders.

Davangere Sugar Issues AGM Corrigendum; Preferential Warrant Price Set at ₹3.77

🟡 NEUTRAL ⭐ 3/10

FUNDRAISE 📅 07 Sep 2026, 06:40 PM

Davangere Sugar Company Limited has issued a corrigendum to the notice of its 55th Annual General Meeting scheduled for September 12, 2026. The update amends the explanatory statement for Item No. 8 relating to a proposed preferential issue of Convertible Equity Warrants. The issue price has been determined at ₹3.77 per warrant under SEBI ICDR Regulation 164. The corrigendum provides web links to the Practicing Company Secretary certificate from M/s. Mehta & Mehta and the independent valuation report.

Corrigendum issued for the 55th AGM scheduled on September 12, 2026.
Preferential issue price determined at ₹3.77 per Convertible Equity Warrant.
Added online access to the PCS certificate from M/s. Mehta & Mehta and the independent valuation report.
SEBI ICDR Chapter V and Regulation 164/166A compliance disclosures updated.

💡 Track the AGM voting results on September 12, 2026, for Item No. 8 and monitor filings for the total fundraise size and specific warrant allottees.

Davangere Sugar allots 26.59 Cr shares on conversion of $10M FCCBs at Rs 3.60/share

🟡 NEUTRAL ⭐ 6/10

FUNDRAISE 📅 25 Aug 2026, 01:47 PM

Davangere Sugar Company has approved the allotment of 26,59,05,000 equity shares of face value Rs 1 each upon conversion of 100 Foreign Currency Convertible Bonds (FCCBs) worth USD 10 million. The conversion was executed at Rs 3.60 per share at an exchange rate of Rs 95.7258/USD. Post-allotment, the company's paid-up equity share capital increased to Rs 169.59 crore (169,58,95,798 shares). A total of 900 FCCBs of principal value USD 1,00,000 each (USD 90 million) remain outstanding.

Converted 100 FCCBs of USD 100,000 each, totaling USD 10 million (approx Rs 95.73 Cr)
Allotted 26,59,05,000 fully paid-up equity shares of FV Rs 1 each at a conversion price of Rs 3.60 per share
Paid-up equity share capital expanded to Rs 169,58,95,798
900 FCCBs totaling USD 90 million remain outstanding for future conversion or redemption

💡 Track subsequent quarterly shareholding patterns to assess the promoter dilution and monitor the status of the remaining 900 outstanding FCCBs (USD 90M).

AGM on Sep 12, 2026: Proposes 10.64 Cr Warrants to Promoters & Capital Hike to Rs 450 Cr

🔵 WATCH ⭐ 7/10

FUNDRAISE 📅 20 Aug 2026, 05:29 PM

Davangere Sugar Company has issued the notice for its 55th Annual General Meeting scheduled for September 12, 2026. Key special resolutions include hiking the authorised share capital from Rs 200 crore to Rs 450 crore and issuing 10,64,11,079 convertible equity warrants to promoters via conversion/adjustment of outstanding debt. The company also seeks approvals for Section 186 investment limits up to Rs 1,200 crore, overseas investments up to USD 100 million, and transactions involving its overseas subsidiary Aurevant Global Limited.

Proposed increase in authorised share capital from Rs 200 Cr to Rs 450 Cr (450 Cr shares of face value Rs 1 each)
Issue of 10,64,11,079 convertible equity warrants on a preferential basis to the Promoter Group via debt conversion
Approval sought for Section 186 investment limits up to Rs 1,200 Cr and loans/guarantees up to Rs 1,000 Cr
Approval sought for overseas investments up to USD 100 Million and material RPT/asset dilution in Aurevant Global Limited

💡 Track voting outcomes of the AGM on September 12, 2026, and look for subsequent disclosures regarding warrant pricing, conversion schedule, and overseas subsidiary restructuring.

Davangere Sugar Q1 PAT Drops 28% to ₹0.94 Cr; Approves ₹40.12 Cr Promoter Warrant Issue

🟡 NEUTRAL ⭐ 6/10

EARNINGS 📅 14 Aug 2026, 06:19 PM

Davangere Sugar Company reported a 44.2% YoY increase in Q1 revenue from operations to ₹34.72 Cr (₹3,471.56 Lakhs), led predominantly by the distillery division which contributed ₹35.08 Cr. However, standalone net profit fell 28.0% YoY to ₹0.94 Cr (₹93.84 Lakhs), pressured by elevated finance costs of ₹7.19 Cr. Additionally, the Board approved a preferential issue of 10.64 Cr convertible warrants at ₹3.77 per warrant to promoters, raising ₹40.12 Cr (equivalent to ~7.9% of net worth), which supersedes the earlier loan-conversion proposal.

Q1 revenue from operations rose 44.2% YoY to ₹34.72 Cr compared to ₹24.07 Cr in Q1 FY26.
Net profit (PAT) fell 28.0% YoY to ₹0.94 Cr from ₹1.30 Cr in the year-ago quarter due to finance costs of ₹7.19 Cr.
Distillery segment was the primary operational contributor, generating ₹35.08 Cr in revenue and ₹15.84 Cr in segment PBIT.
Approved preferential issue of 10,64,11,079 convertible warrants at ₹3.77 each, aggregating ₹40,11,69,768 to promoters.

💡 Track shareholder approval and eventual conversion timelines for the ₹40.12 Cr warrant issue, along with distillery margins heading into the main sugar crushing season.

Davangere Sugar Re-appoints M/s. D G M S & Co. as Statutory Auditors for 5-Year Term

🟡 NEUTRAL ⭐ 3/10

MANAGEMENT 📅 05 Aug 2026, 07:48 PM

Davangere Sugar Company Limited has approved the re-appointment of M/s. D G M S & Co. as its Statutory Auditors for a second consecutive five-year term. The appointment spans from the conclusion of the 55th Annual General Meeting (AGM) to the 60th AGM, covering financial years 2026-27 through 2030-31. This recommendation by the Audit Committee and Board is subject to final shareholder approval at the upcoming AGM. The company currently maintains a debt of ₹250 Cr against a net worth of ₹505 Cr, with a focus on deleveraging via a ₹149.22 Cr Rights Issue.

Re-appointment of M/s. D G M S & Co. (FRN: 0112187W) for a 5-year term
Term covers the period from the 55th AGM to the 60th AGM (FY 2026-27 to 2030-31)
Board meeting for approval concluded within 15 minutes (18:15 to 18:30)
Company is currently managing a Debt-to-Equity ratio of 0.50 with ₹250 Cr in debt

💡 Investors should look for the upcoming AGM notice to confirm shareholder approval and monitor the progress of the ₹149.22 Cr Rights Issue intended for debt reduction.

5-Year Re-appointment of M/s. D G M S & Co. as Statutory Auditors

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 05 Aug 2026, 07:43 PM

Davangere Sugar Company Limited has announced the re-appointment of M/s. D G M S & Co., Chartered Accountants, as its Statutory Auditors for a second consecutive five-year term. The appointment will span from the conclusion of the 55th Annual General Meeting (AGM) until the 60th AGM, covering the financial years 2026-27 to 2030-31. This recommendation by the Board and Audit Committee is subject to final shareholder approval at the upcoming AGM. The move ensures continuity in the company's financial auditing and reporting processes.

Re-appointment of M/s. D G M S & Co. for a period of 5 consecutive years.
Term covers the financial years starting from 2026-27 through 2030-31.
The Board meeting was brief, lasting 15 minutes from 6:15 p.m. to 6:30 p.m. on August 5, 2026.
The firm (FRN: 0112187W) is headquartered in Jamnagar with operations in Mumbai and other regions.

💡 Monitor the upcoming Annual General Meeting (AGM) results for shareholder confirmation of the appointment and review the auditor's report in the next Annual Report for any financial qualifications.

₹40.12 Cr Loan Conversion to Equity and Authorized Capital Increase to ₹450 Cr

🟢 POSITIVE ⭐ 7/10

FUNDRAISE 📅 28 Jul 2026, 05:00 PM

Davangere Sugar has approved the conversion of ₹40.12 Cr of existing loans into 10.50 Cr convertible warrants at an issue price of ₹3.82 per warrant, specifically for promoters. To facilitate this and future capital requirements, the authorized share capital is being increased by 125% from ₹200 Cr to ₹450 Cr. The board also approved the incorporation of overseas step-down subsidiaries, signaling a potential move toward international operations. This deleveraging step follows the company's strategic focus on debt reduction and ethanol expansion.

Authorized share capital increased from ₹200 Cr to ₹450 Cr to accommodate new issuances.
₹40.12 Cr of existing loans to be converted into 10,50,18,263 warrants at ₹3.82 each.
Loan conversion involves promoters Mr. Ganesh Shivashankarappa Shamanur and Mr. Abhijith Ganesh Shamanur.
Board approved the incorporation of overseas step-down and wholly-owned subsidiaries.
Mr. Krishna Murthy appointed as Cost Auditor for the financial year 2026-27.

💡 Investors should monitor the upcoming shareholder approval for the capital increase and watch for specific details regarding the business objectives of the new overseas subsidiaries.

USD 84.95 Mn Investment in UK Subsidiary for Ethanol and Sugar Expansion

🔵 WATCH ⭐ 10/10

EXPANSION 📅 25 Jul 2026, 12:00 PM

Davangere Sugar Company is investing USD 84.95 million (approx. ‑705 Cr) into its newly formed UK-based wholly-owned subsidiary, Aurevant Global Limited. This investment is funded through the proceeds of a USD 100 million Foreign Currency Convertible Bond (FCCB) issue completed in July 2026. The subsidiary, incorporated in June 2026, will focus on ethanol and sugar products in the UK. This represents a massive capital deployment, as the investment amount exceeds the company's reported net worth of ‑505 Cr.

Investment of USD 84,950,000 (approx. GBP 62,463,235) in Aurevant Global Limited, UK.
Target entity is a newly incorporated shell (June 04, 2026) with zero turnover to date.
Funding sourced from a USD 100 Million FCCB issue which was allotted on July 09, 2026.
The company will be allotted 62,463,235 new ordinary shares of GBP 1.00 each.
Completion of the investment procedure is expected within 10 days.

💡 Investors should monitor the execution timeline for the UK operations and the specific conversion terms of the USD 100M FCCBs, which could cause significant equity dilution. The scale of this international pivot relative to the company's small domestic base requires close scrutiny of management's capability to handle global operations.

USD 100 Million FCCB Listing on Afrinex Exchange at 2% Coupon

🟢 POSITIVE ⭐ 9/10

FUNDRAISE 📅 09 Jul 2026, 06:07 PM

Davangere Sugar Company has successfully listed USD 100 million (approximately ₹835 crore) in Foreign Currency Convertible Bonds (FCCBs) on the Afrinex Stock Exchange, Mauritius. These bonds carry a low annual coupon of 2% and are set to mature in July 2031. This fundraise is exceptionally large for the company, representing approximately 165% of its current net worth of ₹505 crore. The capital infusion provides significant liquidity for the company's stated goals of ethanol expansion and debt reduction.

Total issue size of USD 100,000,000 (One Hundred Million USD)
Low annual interest rate (coupon) of 2% fixed
5-year tenure with a maturity date of July 9, 2031
Listing completed on the Afrinex Stock Exchange, Mauritius, under ISIN MU0000000388

💡 Investors should monitor the specific conversion price of these bonds, as the large issue size relative to the company's scale implies significant potential equity dilution in the future.

Davangere Sugar Clarifies Unmodified Audit Opinion for March 2026 Financial Results

🟡 NEUTRAL ⭐ 2/10

REGULATORY 📅 09 Jul 2026, 05:41 PM

Davangere Sugar Company Limited has responded to a clarification sought by the NSE regarding its financial results for the quarter ended March 31, 2026. The Exchange noted the absence of a formal 'Declaration on Unmodified Opinion' in the original May 29, 2026, filing. The company clarified that this was an inadvertent oversight and that the unmodified status was correctly marked in the XBRL filing. The formal declaration has now been submitted to ensure full compliance with SEBI Regulation 33.

Clarification pertains to the financial results for the quarter ended March 31, 2026
Original results were submitted to the Exchange on May 29, 2026
Company confirmed the Statutory Auditors issued an Unmodified Opinion on the audit report
The missing declaration was formally submitted via a letter dated July 3, 2026

💡 Investors should note that the financial integrity of the March 2026 results remains intact as the audit opinion is 'unmodified' (clean). No further action is required, though consistent administrative oversights can be a minor flag for internal control monitoring.

USD 100 Million FCCB Allotment Approved; USD 85 Million Subscription Received

🟢 POSITIVE ⭐ 10/10

FUNDRAISE 📅 09 Jul 2026, 01:48 PM

Davangere Sugar has approved the allotment of USD 100 million in Unsecured Foreign Currency Convertible Bonds (FCCBs) after receiving USD 85 million in subscription funds. The bonds carry a low 2% annual coupon with a 5-year tenure, maturing in July 2031. This fundraise is massive relative to the company's size, representing approximately 165% of its current net worth of ₹505 crore. The bonds were issued at a 15% discount to the issue price, which explains the USD 85 million receipt for the USD 100 million face value allotment.

Total FCCB issue size of USD 100 million (approx. ₹835 crore) approved and allotted.
Subscription money of USD 85 million already received as of July 09, 2026.
Bonds issued at a 15% discount to the issue price with a 2% annual coupon rate.
Tenure of 5 years with a final maturity date set for July 09, 2031.
Allotment consists of 1,000 bonds with a face value of USD 100,000 each.

💡 Monitor the announcement of the conversion price to assess the potential equity dilution for existing shareholders. Track the utilization of these funds, specifically for ethanol capacity expansion or debt reduction as previously indicated in company strategies.

View All DAVANGERE Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Total income for FY 2024-25 was INR 216.76 Cr, a slight decline of 2.8% from INR 222.97 Cr in FY 2023-24. The Distillery segment grew 44% to INR 150.39 Cr, while the Sugar segment moderated to INR 50.87 Cr due to low rainfall. Co-generation contributed INR 6.23 Cr and Aviation INR 7.50 Cr.

Geographic Revenue Split

100% of revenue is derived from India, primarily from operations in Kukkuwada, Davangere, Karnataka.

Profitability Margins

Net Profit After Tax for FY 2024-25 was INR 10.83 Cr (5% margin). For H1 FY 2025-26, Net Profit stood at INR 3.93 Cr. Distillery segment profit was INR 65.14 Cr in FY 2024-25, while the Sugar segment recorded a loss of INR 22.90 Cr.

EBITDA Margin

Operating profit before working capital adjustments for FY 2024-25 was INR 25.56 Cr (11.8% margin). Segment results show distillery as the core profit driver with INR 65.14 Cr profit against a total segment result of INR 40.01 Cr.

Capital Expenditure

The company launched a Rights Issue in August 2025 to raise up to INR 149.22 Cr (INR 14,921.80 lakhs) at INR 3.05 per share to fund debt repayment and general corporate purposes.

Credit Rating & Borrowing

Long-term bank facilities of INR 165.21 Cr are rated CARE BB+; Stable. Short-term facilities of INR 33.84 Cr are rated CARE A4+. Interest costs for FY 2024-25 were INR 27.15 Cr on total debt, implying an average borrowing cost of approximately 13-14%.

⚙️ Operational Drivers

Raw Materials

Sugarcane (primary), B-Heavy Molasses, and Maize (for ethanol production). Sugarcane availability and yield per acre are the most critical cost drivers.

Import Sources

100% sourced domestically from the state of Karnataka, specifically the Davangere region.

Key Suppliers

Sourced from local farmers with whom the company has established relationships over five decades.

Capacity Expansion

Ethanol plant commercial operations commenced in Q1 FY 2022-23. Current focus is on maximizing utilization of the integrated sugar, distillery, and power facilities.

Raw Material Costs

Raw material costs are highly sensitive to climatic conditions; scanty rainfall in FY 2024-25 reduced cane availability and yield, impacting sugar segment revenue which fell to INR 50.87 Cr.

Manufacturing Efficiency

Working capital utilization remained high at 93-95% during 2024, indicating intensive operational requirements.

📈 Strategic Growth

Growth Strategy

Growth is driven by the strategic shift toward ethanol production, which grew 44% YoY. The company is utilizing a Rights Issue of INR 149.22 Cr to deleverage the balance sheet and improve liquidity for operational expansion in the distillery segment.

Products & Services

Sugar, Ethanol, Cogenerated Power, and Aviation services (charter/maintenance).

Brand Portfolio

Davangere Sugar.

New Products/Services

Ethanol production from Maize and B-Heavy molasses to ensure year-round distillery operations.

Market Expansion

Targeting the national 20% ethanol blending goal by 2025 to ensure regular offtake and assured pricing from Oil Marketing Companies (OMCs).

🌍 External Factors

Industry Trends

The industry is transitioning toward green energy; DSCL is positioned as a diversified energy and agro-based enterprise with 69% of revenue now coming from the distillery segment.

Competitive Landscape

Operates in a cyclical and fragmented industry, competing with other integrated sugar mills in Karnataka.

Competitive Moat

Sustainable moat derived from a 50-year track record and established relationships with local farmers, ensuring a steady supply of sugarcane in normal climatic years.

Macro Economic Sensitivity

Highly sensitive to the Government of India's ethanol blending program (20% target) and Minimum Selling Price (MSP) for sugar.

Consumer Behavior

Increasing national demand for green energy and ethanol-blended fuels is shifting the company's focus away from cyclical sugar sales.

Geopolitical Risks

Global crude oil price movements and international trade policies indirectly affect the domestic ethanol blending program and sugar export viability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Fair and Remunerative Price (FRP) for sugarcane and the Minimum Selling Price (MSP) for sugar.

Environmental Compliance

Subject to increasing regulations regarding effluent treatment, waste management, and air quality; non-compliance poses penalty risks.

Taxation Policy Impact

Effective tax rate was approximately 15% in FY 2024-25, with a tax provision of INR 1.92 Cr on PBT of INR 12.86 Cr.

⚠️ Risk Analysis

Key Uncertainties

Climatic pressure (rainfall) is the primary uncertainty, which can reduce sugar production and impact segment profitability (as seen in the INR 22.90 Cr sugar segment loss).