Godavari Biorefineries Q1 Results: Net Loss Widens to 193M Rupees; EBITDA Slips
Godavari Biorefineries reported a widened net loss of 193M Rupees in Q1 FY27 versus 166M Rupees in Q1 FY26, despite revenue growth to 5.6B Rupees from 5.23B Rupees. EBITDA declined sharply to 5M Rupees from 47M Rupees, compressing the EBITDA margin to 0.1% from 0.9% YoY. The bio-based chemicals segment delivered 53% EBITDA growth, while the company commissioned a 200 KLPD grain-based distillery, raising total ethanol capacity to 800 KLPD.
*this image is generated using AI for illustrative purposes only.
Godavari Biorefineries Ltd reported a net loss of 193M Rupees for the quarter ended June 30, 2026, widening from a loss of 166M Rupees in the same period last year. The deterioration in profitability occurred despite a year-on-year increase in revenue to 5.6B Rupees from 5.23B Rupees, highlighting margin pressure across key segments. Finance costs declined 9.0% YoY to ₹13.9 crore from ₹15.3 crore, but this was insufficient to offset operational challenges.
The Board of Directors approved the unaudited financial results at its meeting held on August 05, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The press release was submitted to the National Stock Exchange of India Limited and BSE Limited on the same date. Manoj Jain, Company Secretary & Compliance Officer, signed off on the disclosure.
Financial Performance
Revenue for the quarter came in at 5.6B Rupees, compared to 5.23B Rupees in the prior year quarter. EBITDA contracted sharply to 5M Rupees from 47M Rupees in the same period last year, with the EBITDA margin narrowing to 0.1% from 0.9% year-on-year. This represents a significant decline from the ₹92.1 crore EBITDA recorded in Q4 FY26. The widening net loss and compressed EBITDA margin reflect ongoing operational challenges despite top-line growth.
| Particulars | Q1 FY27 | Q1 FY26 | Q4 FY26 | FY26 |
|---|---|---|---|---|
| Revenue | 5.6B Rupees | 5.23B Rupees | ₹570.0 crore | ₹2,000.2 crore |
| EBITDA | 5M Rupees | 47M Rupees | ₹92.1 crore | ₹139.3 crore |
| EBITDA Margin | 0.1% | 0.9% | — | — |
| Net Profit/(Loss) | (193M Rupees) | (166M Rupees) | ₹52.9 crore | ₹3.5 crore |
Segment Dynamics
The bio-based chemicals segment emerged as a bright spot, delivering 53% EBITDA growth year-on-year. Its EBITDA margin expanded to 11.4% from 8.9% in Q1 FY26, reflecting benefits from debottlenecking initiatives and a focus on higher-value specialty products. Samir Somaiya, CMD, attributed this to robust revenue growth and healthy margin expansion within the division.
Conversely, the ethanol segment's contribution to revenue mix shifted significantly. In Q1 FY27, ethanol accounted for 28% of revenue, down from 39% in Q1 FY26. Meanwhile, sugar and cogeneration saw its share rise to 40% from 33%. Bio-based chemicals maintained a steady 30% share, up slightly from 26%.
| Segment | Q1 FY27 Share | Q1 FY26 Share |
|---|---|---|
| Sugar & Cogeneration | 40% | 33% |
| Bio-Based Chemicals | 30% | 26% |
| Ethanol | 28% | 39% |
| Unallocated | 2% | 2% |
Operational Milestones
The company commissioned a 200 KLPD grain-based distillery at Sameerwadi during the quarter. This addition increases Godavari Biorefineries' total ethanol capacity to 800 KLPD, enhancing feedstock flexibility and operational resilience. Management stated this investment strengthens the ability to optimize operations across varying market conditions.
In R&D developments, the company secured an Indian patent for a cost-effective process to manufacture branched alcohols. Additionally, a Japanese patent was granted for a novel anti-cancer molecule. The company filed an application with the CDSCO for preliminary efficacy trials for its lead novel anti-cancer molecule targeting Triple Negative Breast Cancer, with trials expected to commence in Q3 FY27, subject to regulatory approvals.
What the Numbers Show
The divergence between top-line growth and bottom-line performance is stark. While revenue grew year-on-year to 5.6B Rupees, EBITDA fell sharply to 5M Rupees from 47M Rupees, with the EBITDA margin compressing to 0.1% from 0.9%. This suggests that revenue growth was not accretive to operating margins, likely due to lower margins in the larger sugar and ethanol segments offsetting the high-margin performance of bio-based chemicals. The widening net loss indicates that fixed costs and finance charges remain significant burdens despite the reduction in interest expenses.
Historical Stock Returns for Godavari Biorefineries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.16% | -0.83% | -0.30% | +6.90% | -11.72% | -22.09% |
How will the newly commissioned 200 KLPD grain-based distillery impact feedstock costs and ethanol margin stability in the upcoming quarters?
What specific operational efficiencies or cost-cutting measures does management plan to implement to reverse the sharp EBITDA margin compression in the sugar and ethanol segments?
Could the successful commencement of CDSCO-approved trials for the novel anti-cancer molecule in Q3 FY27 unlock new high-margin revenue streams beyond traditional bio-refining?
20
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
