Ethanol Penny Stock Under Rs 5: Reports Earnings for FY25, EBITDA Reported at Rs 53.75 Crore

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Ethanol Penny Stock Under Rs 5: Reports Earnings for FY25, EBITDA Reported at Rs 53.75 Crore

On Monday, stock jumped over 3 per cent, down by 29 per cent on YTD basis

Davangere Sugar Company Limited, a Small-Cap company with a legacy dating back to 1970, has announced its unaudited financial results for the quarter and year ended 31 March 2025. The company, which has been expanding its product portfolio beyond sugar into sustainable power and ethanol solutions, reported solid financial and operational performance for FY25.

For the March 2025 quarter, the total income stood at Rs 5747.51 lakhs, while profit before tax came in at Rs 224.71 lakhs. EBITDA for the quarter was reported at Rs 1024.93 lakhs, reflecting efficient cost management and operational strength. On a full-year basis, revenue from operations reached Rs 21675.60 lakhs, with a Profit After Tax (PAT) of Rs 1083.11 lakhs. The EBITDA for FY25 grew by 8 per cent year-on-year to Rs 5375.15 lakhs, underscoring consistent performance and scalability.

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To strengthen its ethanol business, the company is planning to procure larger quantities of maize, supported by evolving government policies that promote ethanol production from maize. A proposed initiative by the Central Government to establish a National Coordinating Agency (NAFED) for maize procurement is expected to ensure year-round raw material supply to sugar mills, including Davangere Sugar.

As part of its long-term strategy, the company is working closely with farmers in surrounding villages. It has initiated the distribution of sugarcane seeds and other agricultural inputs at subsidized rates, along with financial support through plantation subsidies. This farmer-centric approach aims to achieve approximately 15,000 acres of sugarcane cultivation in the upcoming season. The expansion into non-traditional cane-growing areas is expected to improve raw material security and offer socio-economic benefits to rural communities.

Davangere Sugar Company has established robust infrastructure with a sugarcane crushing capacity of 6000 TCD, a 65 KLPD ethanol plant, and a co-generation power plant of 24.45 MW. The company also owns five large warehouses with a total storage capacity of 60,000 tonnes, reinforcing its efficient storage and distribution network.

From its base in Kukkuwada, Karnataka, the company continues to play a key role in regional development and sustainability. With a focus on zero waste, green energy, and local employment, it stands out in its commitment to innovation and social responsibility.

Disclaimer: The article is for informational purposes only and not investment advice.

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