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 Limited announced its financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance driven by operating leverage and improved margins. The bio-based specialty chemicals pioneer reported total income of Rs. 461.9 crore for Q3FY26, marking a 2.5% year-on-year growth.

Strong Financial Performance in Q3FY26

The company delivered impressive profitability improvements across key metrics during the quarter. EBITDA grew 13.8% year-on-year to Rs. 45.1 crore, while PBT before exceptional items surged 152.2% to Rs. 21.4 crore, showcasing effective operational execution.

The company's margin expansion reflects its strategic focus on high-margin segments, with EBITDA margin improving to 9.8% from 8.8% in the previous year and PBT margin rising significantly to 4.6% from 1.9%.

Segment-wise Performance Analysis

The Bio-based Chemicals segment emerged as a key growth driver, with EBITDA increasing 76.7% year-on-year to Rs. 10.9 crore in Q3FY26. The Sugar & Cogeneration segment also performed well, recording EBITDA growth of 28.1% to Rs. 32.1 crore. However, the Ethanol segment faced challenges with EBITDA declining 56.6% to Rs. 4.2 crore.

The revenue mix remained consistent with the previous year, with Sugar & Cogeneration contributing 39%, Bio-Based Chemicals 31%, Ethanol 29%, and Unallocated segments 1% of the total revenue from operations of Rs. 460 crore.

Nine-Month Performance and Strategic Highlights

For the nine months ended December 31, 2025, total income reached Rs. 1,430.2 crore compared to Rs. 1,298.2 crore in the previous year. The company achieved positive EBITDA of Rs. 47.2 crore against a negative Rs. 1.4 crore in 9M FY25, demonstrating significant operational turnaround.

Key strategic developments during the period included the grant of a U.S. patent for the company's novel anti-cancer molecule targeting triple-negative breast cancer, highlighting its R&D capabilities. The company also progressed its DME-to-CO2 technology initiative with pilot plant activities underway.

Business Expansion and Innovation Focus

The company's Jivana brand achieved a significant milestone by crossing Rs. 100 crore revenue in the first nine months of FY26, reinforcing its retail platform strategy. Specialty chemicals contributed 62% of the Bio-based Chemicals basket in 9M FY26, with expectations for this share to increase further.

Finance costs declined 46% year-on-year during Q3FY26, aligning with the company's strategy to improve cash flows. The fungible grain-based ethanol capacity is scheduled for commissioning in Q1 FY27, positioning the company to benefit from the restoration of the ethanol blending program.

Management Outlook

Commanding Managing Director Shri Samir Somaiya highlighted the quarter's significantly improved profitability driven by operating leverage and disciplined execution. He emphasized the company's continued focus on high-potential bio-based specialty chemicals, capacity optimization, and sustainability-led innovation to drive long-term growth and value creation.