Davangere Sugar Share Price Jumps Over 2%; Reports ₹10.25 Crore EBITDA in Q4FY25

While broader equity indices faced selling pressure on June 2, 2025, Davangere Sugar Company Limited emerged as a notable outperformer. The share price of Davangere Sugar advanced by 2.19% to ₹3.74 on NSE, even as the Nifty 50 slipped by 0.82%. Meanwhile, the India VIX spiked nearly 5%, indicating elevated volatility across the market.

Davangere Sugar Quarterly Performance Highlights

Davangere Sugar Company Limited announced its unaudited results for the quarter and year ended March 31, 2025. The company reported:

• Total income for the March quarter: ₹57.48 crore
   
• Profit before tax: ₹2.25 crore
   
• EBITDA: ₹10.25 crore

Annual Financial Performance of Davangere Sugar

For the full year ended 31 March 2025, the financial metrics remained robust:

• Revenue from operations: ₹216.76 crore
   
• Profit after tax: ₹10.83 crore
   
• EBITDA: ₹53.75 crore, marking an 8% growth year on year

Davangere Sugar Share Price Performance

The share price of Davangere Sugar advanced by 2.19% to ₹3.74 on NSE. The stock price of Davangere Sugar opened the session at ₹3.68 per share on June 2. 

Ethanol Focus Supported by Maize Procurement

To maximise ethanol output, the company is scaling up maize procurement from multiple regions. This aligns with government policy that promotes ethanol production from maize and the creation of a National Coordinating Agency through NAFED to facilitate farmer-to-factory supply chains.

Read More: Best Defence Stocks In India In June 2025.

Farmer Partnerships and Sugarcane Expansion

Davangere Sugar is working closely with farmers to increase sugarcane output. Key initiatives include:

• Subsidised distribution of sugarcane seeds and inputs
   
• Introduction of plantation subsidies
   
• A goal of cultivating 15000 acres of sugarcane for the upcoming season

These measures aim to strengthen farmer incomes while ensuring uninterrupted raw material supply.

Growth in New Cultivation Areas

The company is extending sugarcane farming into traditionally non-cane growing areas. This will secure a sustainable raw material pipeline and offer socio-economic upliftment for local farming communities.

Support mechanisms such as timely payments, access to credit, and guidance on modern agricultural practices are being provided to empower growers and boost productivity.

Diversification and Legacy

Founded in 1970 and based in Kukkuwada, Karnataka, Davangere Sugar has evolved beyond sugar production. The company now actively contributes to India’s sustainable energy goals through ethanol and green power solutions.

Infrastructure Backing Its Ambitions

Davangere Sugar’s facility includes:

• 6000 TCD sugar crushing capacity
   
• 65 KLPD ethanol production unit
   
• 24.45 MW cogeneration power plant
   
• 165 acres of land , including 5 warehouses capable of storing 60000 tonnes of sugar

These resources underpin its ability to operate at scale and deliver a consistent supply.

Conclusion

The company promotes a Zero Waste approach and Green Energy initiatives while supporting regional development through job creation. Its model blends sustainability with economic growth, offering long-term value to stakeholders and the community.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.