Corporate Performance     

Published: August 31, 2025
Updated: August 31, 2025

Godavari Biorefineries

Leader in ethanol and biochemicals

Mumbai-based and NSE-BSE listed Godavari Biorefineries (GBL) of the Somaiya group is a leading producer of ethanol and a global pioneer in manufacturing bio-based chemicals. Its diversified product portfolio comprises bio-based chemicals, sugar, rectified spirits, ethanol, other grades of alcohol, and power.

During the financial year ended March 2025, on a consolidated basis the company reported a total income of Rs 1,886.9 crore with an EBITDA of Rs 120.3 crore (6.4%) and a net loss of Rs 23.4 crore. In Q1 of the current FY26, it achieved total revenue of Rs 534 crore (PY Rs 525.3 crore), positive EBITDA of Rs 6.5 crore (PY EBITDA loss Rs 9.5 crore). As a result, the net loss was at Rs 16 crore vis-à-vis Rs 26.1 crore in the corresponding period of the previous year.

Commenting on the results, Sameer Somaiya, Chairman & MD, said, “Q1 FY26 has been a quarter of resilience and progress for our company. Despite the seasonality inherent in some of our segments, we delivered an improved performance with revenue from operations at Rs 533.2 crore, an improvement over the same quarter last year, and achieved an EBITDA of Rs 6.5 crore. Our bio-based chemicals segment recorded a strong 43% year-on-year growth in EBITDA.

ETHANOL BOOST

“On the ethanol front, from sugar season 2024-25 the restoration of the ethanol blending programme from juice/ syrup helped us produce more ethanol from B- heavy molasses. Our upcoming grain-based ethanol capacity will add a new growth lever.” Continuing, he said, “We are also proud to share significant progress in our drug discovery efforts. The European patent for our novel anti-cancer molecule has been validated in Spain and the United Kingdom, and as a Unitary Patent covering multiple EU member-states. Safety trials for the same molecule have been concluded without any dose limiting toxicity (DLT).

“Additionally, we have been granted a patent by the China National Intellectual Property Administration (CNIPA) for another novel anti-cancer molecule – hydroxyl-1, 4-naphthalenedione. This patent covers a new class of compounds that have demonstrated strong inhibitory effects on cancer and cancer stem cells in vitro. These compounds have shown significant efficacy against multiple cancer types, including breast and prostate cancer.”

BIOCHEM FOCUS

Mr Somaiya continued, “Looking ahead, our strategic focus remains on strengthening the bio-based chemicals segment through ongoing debottlenecking and the development of bio-based speciality chemicals. In parallel, we are enhancing our multifeedstock ethanol capabilities and investing in continuous research and development to drive long-term growth and innovation. With these initiatives, we remain confident of creating sustainable value for all stakeholders.”

The equity capital is Rs 51.18 crore, wherein the promoter group holds a 63.31% stake. GBL had come out with its IPO in October 2024 at an issue price of Rs 352 per share (Rs 342 premium) and the issue size was Rs 554.75 crore. Six mutual funds together hold 10.95% in the company as of June 30, 2025. At its current market price of Rs 263 per share (25.28% discount to the issue price), the company is being valued at Rs 1,346.44 crore. The yearly high-low is Rs 408 and Rs 145.

ATTRACTIVE SCRIP

GBL’s diversified product portfolio, ongoing expansion of both ethanol capacity and capacity utilisation, increase in the proportion of bio-based speciality chemicals, major achievements in drug discovery and patent receipt in anticancer molecule, etc., supported by consistency in investing in R&D with a focused approach, and, not least, a wellestablished promoter group under the energetic leadership of Mr Somaiya, augur well for the company. Moreover, the stock is available at a 25% discount to its issue price after nine months of listing. Investors with the patience to hold the stock for a minimum of 15-18 months can buy the shares at the CMP of Rs. 263 for good returns. Importantly, a further downside to the current price looks minimal.