Audited Financial Results for the quarter and year ended March 31, 2026.
DAVANGERE · price
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Davangere Sugar Company reported annual revenue of Rs 23,877 Lacs for FY26, up 11% from Rs 21,499 Lacs in FY25. However, net profit declined 22% to Rs 851 Lacs from Rs 1,094 Lacs in the prior year. The company raised significant equity capital during the year (Rs 4,891 Lacs from share allotment and Rs 9,527 Lacs from share premium), which increased the paid-up capital from Rs 9,408 Lacs to Rs 14,300 Lacs. Segment-wise, sugar revenue nearly doubled to Rs 9,889 Lacs while distillery revenue declined to Rs 13,174 Lacs. Operating cash flow turned sharply negative at Rs -7,074 Lacs, primarily due to a large inventory buildup of Rs 6,592 Lacs. EPS declined from Rs 0.12 to Rs 0.06 per share. The statutory auditor issued a clean unqualified opinion on the financial statements.
The company achieved revenue growth but suffered profit decline and negative operating cash flow, which raises concerns about profitability and cash conversion. The large equity dilution may dilute shareholder value. The clean audit opinion provides some comfort.