Davangere Sugar Q1 FY27: PAT falls 28% YoY to ₹0.94 Cr despite 44% revenue growth

Standalone revenue for Q1 FY27 (quarter ended June 30, 2026) rose 44.2% YoY to ₹34.72 Cr from ₹24.07 Cr, but standalone PAT fell 28.1% YoY to ₹0.94 Cr from ₹1.30 Cr — profit trailing revenue growth by a wide margin is the actual story despite the topline gain. Sequentially both lines are down sharply (revenue -58.6%, PAT -51.9%) against the seasonally heavy March-2026 quarter (₹83.82 Cr revenue, ₹1.95 Cr PAT); management's own notes flag the sugar business's seasonal nature, so the QoQ drop is not read as underlying weakness. The YoY profit shortfall traces to costs, not revenue. Net profit margin compressed to 2.70% from ~5.4% a year ago, and PBT fell 25.7% YoY to ₹1.28 Cr from ₹1.73 Cr. Two items explain most of the gap: an inventory-accounting swing that added roughly ₹7.69 Cr to reported costs (the "changes in inventories" line moved from a ₹4.50 Cr credit to a ₹3.20 Cr charge), and power & fuel costs that more than doubled to ₹2.36 Cr from ₹1.14 Cr (+106.9%). By segment, Distillery remained the sole profit engine, growing segment PBIT 18.6% YoY to ₹15.84 Cr, while Sugar's segment loss widened to ₹4.42 Cr (from ₹3.37 Cr) and Co-generation's loss nearly tripled to ₹2.73 Cr (from ₹1.10 Cr); Aviation's loss narrowed to ₹0.22 Cr (from ₹0.40 Cr). There is no formal management guidance or prior concall commentary on record, and no analyst consensus estimate could be found for this quarter (small-cap, thin coverage) — so both the vs-guidance and vs-street reads are unknown; no press release accompanied this filing beyond the standard board-outcome intimation. The cost pressure sits against a backdrop of aggressive capital-raising: finance cost, up just 3.4% YoY to ₹7.19 Cr, jumped 58.8% QoQ from ₹4.53 Cr, and on results day the board approved ₹40.12 Cr of convertible warrants (10.64 Cr warrants at ₹3.77 each, allotted to promoters), superseding a July 28 loan-conversion proposal — following a $100M FCCB listing on the Mauritius exchange (July 9) and an $84.95M investment in a UK subsidiary (July 25). Together these point to a debt- and equity-funded expansion phase whose financing cost is only beginning to show up in the P&L.