DAVANGEREBSEDavangere Sugar Company LtdHighNeutral
Announced Fri, 29 May · 19:55 IST

Board Meeting held for approval of Audited Financial Results for the quarter and year ended March 31, 2026.

Revenue Growth 20pctPat NegativeNegative Operating CashflowResults View source PDF

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AI summary

Davangere Sugar Company Limited reported audited financial results for FY 2025-26 with total income of Rs 24,109.89 Lakhs, up 11.23% from Rs 21,675.60 Lakhs in the previous year. However, profitability declined significantly with Net Profit After Tax dropping to Rs 850.66 Lakhs from Rs 1,093.71 Lakhs, a decline of about 22%. EPS fell to Rs 0.06 per share from Rs 0.12 in the prior year. The company saw strong revenue growth driven by sugar and distillery segments, but higher material costs and inventory buildup impacted overall profitability. Operating cash flow was deeply negative at Rs 7,073.78 Lakhs, primarily due to a Rs 6,592.27 Lakh increase in inventories. The statutory auditors DGMS & Co. issued an unqualified opinion with no concerns raised.

Likely market impact

While revenue grew over 11%, the sharp 22% decline in net profit and deeply negative operating cash flow are concerning for shareholders. The company requires close monitoring as negative operating cash flows indicate potential liquidity stress despite reporting positive net profits.