Davangere Sugar Company Limited has submitted to the Exchange, the financial results for the period ended Jun 30, 2025.
DAVANGERE · price
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Davangere Sugar Company reported a sharp drop in revenue for Q1 FY26, falling about 47% year-on-year to Rs 2,407.01 lakhs from Rs 4,557.16 lakhs in Q1 FY25. Despite the revenue decline, net profit rose nearly 39% to Rs 130.42 lakhs (from Rs 94.02 lakhs) and EPS improved to Rs 0.14 from Rs 0.10. The Distillery segment carried the company, posting a segment profit of Rs 1,335.92 lakhs (up from Rs 607.42 lakhs), while Sugar, Co-generation, and Aviation all swung to losses. Finance costs jumped 27% to Rs 695.24 lakhs, reflecting higher debt servicing. The statutory auditor (DGMS & Co.) issued an unqualified limited review report with no observations. Separately, the General Manager – Distillery resigned on personal grounds and was replaced by Mr. Sheshagiri Rao, an alcohol technologist with 19+ years of industry experience.
The headline revenue fall looks alarming but is largely a mix shift — Distillery now drives nearly all operating revenue and profits, while the core Sugar business continues to bleed. Higher finance costs remain a concern, but the sharp jump in Distillery profitability cushioned bottom-line growth. For shareholders, the key takeaway is the company's increasing dependence on the Distillery segment for earnings; short-term stock reaction may be muted given weak top-line despite profit growth.