Shares of Davanagere Sugar Company rose significantly despite a broader market decline following a positive opening. Key equity indices started in the green, but Sensex subsequently dropped 393.38 points to 74,465.61, while Nifty shed 48.80 points to 23,365.50 in the afternoon trade. Meanwhile, highlighting resilience against this market volatility, the stock maintained its positive momentum.
The sugar stock began trading on the BSE in red at Rs 2.12 compared to its previous close of Rs 2.15. However, buying interest pushed the price up to an intraday high of Rs 2.32, showing a gain of 7.9 per cent or Rs 0.17 from the last close.
At the time of writing, the shares were trading at Rs 2.28, reflecting a rise of Rs 0.13 or 6.05 per cent. The total market capitalisation of the firm stood at Rs 326.04 crore.
Over the past two sessions, the stock has rallied, rising nearly 10 per cent. Its 52-week trading range remains between Rs 1.74 and Rs 5.48.
Why Devanagere Sugar Stock Is Surging?
According to media reports citing analysts, the share price increase is due to expected tailwinds from the national ethanol blending program. The government plans to raise the ethanol blend target to 22 per cent, up from current levels of 13-14 per cent.
Business operations framework
The business operates across three main segments: sugar manufacturing, ethanol processing, and power co-generation. Regulatory disclosures indicate that its ethanol production facility is capable of processing multiple raw materials, including sugar syrup, molasses, and grain feedstocks.
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Revenue in FY26
The business reported revenue of Rs 238.77 crore for FY26, representing an 11.1 per cent growth over the Rs 214.99 crore generated in the preceding fiscal year. Although top-line expansion creates room for growth, higher revenue does not automatically guarantee stronger profit margins.
Previously, foreign institutional investor Craft Emerging Market Fund, based in Mauritius, acquired 50 million shares of Davangere Sugar Company in a bulk transaction valued at over Rs 18 crore.
According to NSE bulk deal disclosures, Craft Emerging Market Fund completed the purchase via two associate entities—Craft Emerging Market Fund PCC - Citadel Capital Fund and Craft Emerging Market Fund PCC - Elite Capital Fund—with each acquiring 25 million shares.
Disclaimer: This story is for informational purposes only. It should not be construed as investment advice. Please seek professional advice before investing.