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Davangere Sugar shares rise 6% as crude oil lifts ethanol outlook

The stock was trading at ₹1.9 per share on BSE around midday, after a June-quarter net profit drop and a sharp selloff over the past year.

Reported · Written up by our desk · Emerging Markets

Davangere Sugar Company shares jumped 6.18% during Thursday trading, supported by optimism for higher ethanol blending linked to a rally in crude oil prices, according to LiveMint Markets. The news came as Brent crude stayed above $100 per barrel for the first time in almost six weeks amid ongoing US-Iran tensions in West Asia.

The outlet said the increase in Brent is likely to bolster demand for ethanol blending, which can benefit sugar makers because they produce ethanol during sugar production. A SEBI-registered market expert cited the companys ability to use its sugar mill to produce ethanol as one potential driver of the buying buzz.

LiveMint Markets reported that the stock was up about 6.13% during Thursday's intraday session, trading at ₹1.9 per share on BSE with a market capitalization of ₹271.70 crore around 12:55 pm. The shares also hit an intraday high of ₹1.90 and an intraday low of ₹1.74.

Despite the day’s surge, the article noted the stock has fallen sharply over longer periods, down 52% in six months and about 51.5% in one year. It also highlighted weaker recent fundamentals, with net profit falling to ₹94 lakh in the June quarter of FY2026-27 from ₹1.95 crore in the March quarter of FY25-26, while net revenue slipped to ₹34.72 crore from ₹83.82 crore in the prior quarter.

Latest closeWTI crude $97.01 ▲4.3%|Brent $102.05 ▲4.2%|Sugar $19.35 ▲6.9%

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