Davangere Sugar Company shares jumped 6.18% during Thursday's trading session, driven by optimism over higher ethanol blending and rising crude oil prices. According to reports from Mint, the stock was trading 6.74% higher at ₹1.90 per share on BSE with a market capitalisation of ₹271.70 crore at 12:55 pm on Thursday. The sugar stock had touched an intraday high of ₹1.90 per share and an intraday low of ₹1.74 per share. Despite Thursday's sharp move, the stock has been under considerable pressure over the past several months, declining 39% in the past month and 47.06% over the last three months.
The recent uptick in sugar stocks coincides with a crude oil price rally, as reported by Mint. Brent crude stayed above $100 per barrel today for the first time in almost six weeks amid continuing tensions between the US and Iran in West Asia. Market expert Anuj Gupta explained that soaring crude oil prices have fueled demand for ethanol blending, benefiting sugar companies that produce ethanol during sugar production. Sugar companies use sugar mills to produce ethanol as an additional business alongside their core sugar operations. The development provided the backdrop to Thursday's buying interest in Davangere Sugar, with the stock rising more than 6% intraday on renewed focus on ethanol blending.
According to Mint reports, the stock has declined 52% in six months and around 51.5% in one year. The company's 52-week high was ₹5.48 per share on January 22, 2026, while the 52-week low was ₹1.74 per share on September 10, 2026. The stock has declined around 39% in one month and around 47.06% in three months. The company's return on equity (ROE) stood at 2.38%. Today's recovery is after a long period of underperformance for the stock, which still trades far below its January 2026 high of ₹5.48.
As reported by Mint, the company's net profit declined to ₹94 lakh in the June quarter of financial year 2026-27 against a net profit of ₹1.95 crore in the March quarter of FY25-26. The net revenue stood at ₹34.72 crore in Q1FY27 against ₹83.82 crore in the revenue in Q4FY26. The numbers from Davangere Sugar for Q1 have revealed a drop in profit as well as revenues, with the company experiencing challenges in both operational and financial metrics.
