Godavari Biorefineries Limited has reached near-complete utilization of its Rs. 325.00 crore Initial Public Offering proceeds, marking the conclusion of its IPO fund deployment as outlined in CARE Ratings Limited's final monitoring agency report for the quarter ended December 31, 2025.

IPO Proceeds Utilization Summary

The company has utilized Rs. 324.91 crore out of the total Rs. 325.00 crore IPO proceeds, leaving only Rs. 0.09 crore unutilized. This represents a utilization rate of 99.97% of the total funds raised through the public issue conducted from October 23, 2024 to October 25, 2024.

Fund Allocation Revisions

During Q3 FY26, the company implemented significant revisions to its fund allocation strategy through a board resolution dated May 24, 2025. The company reclassified Rs. 1.91 crore from surplus issue expenses to general corporate purposes during the quarter, adding to the previously reclassified Rs. 1.46 crore, bringing the total reclassification to Rs. 3.37 crore.

Quarterly Fund Deployment

During Q3 FY26, the company utilized Rs. 1.95 crore of IPO proceeds across different categories:

• Issue Expenses: Rs. 0.07 crore, including Rs. 0.02 crore for reimbursement of previously incurred expenses
• General Corporate Purposes: Rs. 1.88 crore primarily for vendor payments
• Debt Repayment: No utilization during the quarter as this component was completed in earlier periods

Financial Performance Challenges

The monitoring report highlights concerning financial performance trends. The company reported a net loss of Rs. 23.41 crore in FY25 compared to a net profit of Rs. 12.30 crore in FY24 on a consolidated basis. The losses continued in H1 FY26 with Rs. 57.61 crore in net losses.

The company's management clarified that FY25 losses included a one-time notional additional deferred tax liability of Rs. 24.00 crore due to changes in the Income Tax Act in July 2024, which removed indexation benefits for corporates. For H1 FY26, losses were attributed to the sugar division's off-season period, though results were reportedly better than H1 FY25.

Regulatory Compliance and Final Report

This marks the final monitoring agency report for the Rs. 325.00 crore initial public offering, as confirmed by CARE Ratings Limited. The report was prepared in compliance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 41 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The monitoring agency noted that while there was a minor deviation of Rs. 0.09 crore (0.03%) from the total proceeds transferred to the monitoring account, this fell within the acceptable range of up to 10% deviation. The company explained that merchant bankers serve as authorized signatories for transfers from the public issue account to the monitoring account, limiting the company's direct control over these transfers.

Godavari Biorefineries Ltd has received an order from the National Green Tribunal (NGT) Western Zone Bench, Pune, directing the company to implement water treatment measures at its Sakarwadi manufacturing facility. The company disclosed this development on February 09, 2026, in compliance with SEBI listing regulations.

NGT Order Details

The tribunal has directed the company to implement pending recommendations made by the Joint Committee of Maharashtra Pollution Control Board (MPCB) and Central Pollution Control Board (CPCB) along with the Ministry of Environment, Forest and Climate Change (MoEF&CC) in their report dated August 26, 2024.

Background of the Case

The NGT order stems from a complaint filed by Mr. Prasad Haribhau Jadhav, a resident of Wari village, on March 24, 2024. The complaint alleged water pollution and contamination of the Godavari river and surrounding water sources near the Sakarwadi manufacturing facility.

The specific allegations include:

• Discharge of hazardous chemicals to water bodies
• Contamination of air by emitting hazardous gases
• Impact on surrounding water sources

Implementation Requirements

The company must construct a trench of adequate size along the periphery of the bioremediation area. This measure aims to:

• Catch runoff water before it reaches the Godavari River
• Direct collected water to the industry site for proper treatment
• Ensure compliance with environmental protection standards

Financial and Operational Impact

Godavari Biorefineries has assessed the impact of the NGT order on its business operations:

The company has formally communicated that there is no material impact on its financials, operations, or other activities due to this order. The disclosure was made by Company Secretary and Compliance Officer Manoj Jain under his membership number F-7998, ensuring regulatory compliance with SEBI listing obligations.