Davangere Sugar Stock Jumps 6%: What’s Driving This Sugar Stock Rally As Ethanol Expansion Plans Gather Pace?

Davangere Sugar Company shares gained over 6% in Tuesday’s trading session, with the stock rising as the company’s ethanol expansion plans and business growth remain in focus. The sugar and ethanol producer has outlined plans to expand its distillery operations, while its FY26 revenue also increased from the previous year.

Davangere Sugar Share Price Today

Davangere Sugar shares were trading at Rs 2.27 on the NSE at 3:02 pm on September 22, 2026, up Rs 0.13, or 6.07%, from the previous close. The latest movement in the stock comes as the company’s plans for its ethanol business remain in focus.

Davangere Sugar Eyes Ethanol Growth With Distillery Expansion

According to the investor presentation filed with the NSE, Davangere Sugar’s ethanol facility can use different feedstocks, including sugar syrup, molasses and grain. The company has also outlined plans to expand its distillery operations. The move is aimed at increasing the company’s presence in ethanol production alongside its existing sugar business.

Recent reporting has also described the company’s UK subsidiary, Aurevant Global, as a vehicle for exploring opportunities linked to the sugar and ethanol businesses.

Davangere Sugar Revenue Rises 11%

Davangere Sugar reported revenue of Rs 238.77 crore in FY26, compared with Rs 214.99 crore in the previous financial year. This represents an increase of around 11.1% year-on-year, showing growth in the company’s revenue during the year.

Sugar, Ethanol And Power Businesses

Davangere Sugar has a business model that combines sugar manufacturing with ethanol production and power co-generation. The company’s ethanol facility has flexibility in terms of feedstock, with sugar syrup, molasses and grain among the options mentioned in its investor presentation. The planned expansion of distillery operations could therefore become an important part of the company’s business plans going ahead.

Another factor shareholders need to keep in mind is the company’s foreign currency convertible bond, or FCCB, financing. If the FCCBs are converted into equity shares, the number of shares outstanding could increase. This may lead to dilution of the existing shareholders’ holding.

The impact will depend on the terms and actual conversion of the FCCBs. Therefore, the development remains relevant while looking at the company’s future shareholding structure.

“The sudden move in Davangere Sugar is clearly due to fresh interest in the sugar-ethanol story, especially the rise in ethanol blending and the benefit accruing from its distillery capacity enhancement. Diversification of the company into ethanol and co-gen does provide an earnings trigger for the company,” said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.

“however, the stock is very volatile, and the current rally should be backed up by operational strength going forward. Moving ahead, sugar prices, margins on ethanol, capacity utilisation, and the execution of its plan will be some of the important issues,” added expert Maurya from Vibhavangal Anukulakara Pvt. Ltd.

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