Davangere Sugar Reports Rs 238.77 Cr FY26 Revenue, Outlines FCCB And Expansion Plans

New Delhi [India], September 10: Davangere Sugar Company Ltd. reported revenue from operations of ₹238.77 crore for FY26, compared with ₹214.99 crore in FY25, representing year-on-year growth of about 11.1%. According to the company’s financial results and stock-exchange disclosures, total income for FY26 stood at ₹241.10 crore.

The Karnataka-based company operates across sugar manufacturing, ethanol production and co-generation of power. Its FY26 segment reporting shows revenue of approximately ₹133.54 crore from distillery operations, ₹98.89 crore from sugar, ₹7.10 crore from co-generation, ₹1.04 crore from aviation and ₹0.52 crore from other activities. These segment figures should not be treated as a direct substitute for reported revenue from operations, as segment disclosures can include presentation and reconciliation adjustments. The audited company-level figure for revenue from operations remains ₹238.77 crore.

For FY26, the company reported EBITDA of about ₹50.7 crore and profit after tax of ₹8.51 crore.

A significant recent corporate action relates to the company’s US$100 million Foreign Currency Convertible Bond issue. The bonds were allotted in July 2026 and carry a 2% coupon, with a conversion price of ₹3.60 per equity share.

On August 25, 2026, Davangere Sugar allotted 26,59,05,000 equity shares following conversion of 100 FCCBs with an aggregate principal value of US$10 million. The conversion was made at ₹3.60 per share using an exchange rate of ₹95.7258 per US dollar. Following the allotment, the company’s paid-up equity share capital increased to ₹169.59 crore.

Importantly, the August conversion represented only part of the FCCB issue. Following the transaction, 900 FCCBs with an aggregate principal value of US$90 million remained outstanding. Any future conversion of these bonds would increase the outstanding equity base and may dilute the percentage ownership of existing shareholders.

The company’s board has also approved an investment of US$84.95 million in its wholly owned UK subsidiary, Aurevant Global Ltd. The approval was granted on July 25, 2026, as part of the planned utilisation of FCCB proceeds. The proposed investment involves the subscription of approximately 62.46 million ordinary shares of GBP 1 each in the subsidiary. The filing described the transaction as an approved investment with completion expected subsequently, rather than confirming that the entire amount had already been deployed at the time of disclosure.

Aurevant Global was incorporated in the UK in June 2026 and is intended to pursue opportunities connected with the sugar and ethanol businesses, including potential overseas expansion initiatives.

Davangere Sugar has separately proposed a preferential issue of 10,64,11,079 convertible equity warrants at ₹3.77 per warrant, aggregating approximately ₹40.12 crore, to promoter group members against outstanding unsecured promoter loans. The proposal was approved by the board on August 14, 2026 but, as of September 10, remained subject to shareholder and other applicable approvals at the company’s AGM scheduled for September 12.

If the proposed warrants are fully converted, promoter and promoter-group shareholding is expected to increase from 41.63% to 45.67%. The transaction would also increase the equity base and therefore carries potential dilution implications for other shareholders.

On the operational side, the company currently has a sugarcane crushing capacity of around 4,750 TCD and 24 MW of co-generation capacity. Its distillery has an existing capacity of 65 KLPD. The company has outlined a planned expansion to 110 KLPD, and this should be treated as proposed capacity rather than existing operating capacity.

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