Godavari Biorefineries Limited (GBL) has reported a significant turnaround in its financial performance for the first quarter of fiscal year 2026, marking a positive shift in its strategic direction towards bio-based specialty chemicals and renewable energy.

Financial Highlights

• Revenue from operations stood at INR 533.20 crores, up from INR 522.50 crores in Q1 FY25.
• Achieved a positive EBITDA of INR 6.50 crores, compared to a loss in the same quarter last year, representing an improvement of INR 16.00 crores.
• Gross margin expanded by 512 basis points year-on-year to 19%.
• Interest costs decreased by 22% year-on-year to INR 15.00 crores, attributed to debt reduction efforts.

Segment Performance

• The bio-based chemical segment registered a robust 43% increase in EBITDA, underscoring the growing demand for green chemistry solutions.
• The ethanol segment benefited from the restoration of the ethanol blending program, allowing for optimized production from B-heavy molasses during the off-season.

Strategic Initiatives and Future Outlook

1. Ethanol Expansion: GBL is progressing with the construction of a 200 kiloliters per day grain-based ethanol distillery, expected to commence commercial production by the end of calendar year 2025. This facility is projected to generate over INR 400.00 crores in revenue at current pricing levels.

2. Bio-based Specialty Chemicals: The company continues to focus on strengthening its bio-based specialty chemical portfolio through de-bottlenecking, process optimization, and development of high-value specialty chemicals.

3. Drug Discovery: GBL has made significant strides in its drug discovery initiatives:

   • Received European patent validation for a novel anti-cancer molecule.
   • Completed safety trials without dose-limiting toxicity.
   • Secured a Chinese patent for another promising anti-cancer compound.

4. Financial Projections: Management projects a 3x EBITDA growth from FY25 to FY29, driven by bio-based specialty chemicals and ethanol capacity expansion.

Management Commentary

Samir Somaiya, Chairman and Managing Director, stated, "Q1 FY '26 has been a quarter of positive change for Godavari Biorefineries Limited, advancing a strategic shift towards bio-based specialty chemicals and renewable energy based on multiple feedstocks. Our performance reflects the strength of our diversified portfolio and our commitment to sustainable innovation."

The company's focus on ethanol production aligns with the Indian government's push for energy security and green energy transition. With the recent achievement of a 20% ethanol blend in petrol nationwide, and potential plans to increase this to 27%, GBL is well-positioned to capitalize on this growing market.

As Godavari Biorefineries Limited continues to execute its strategic priorities, including de-bottlenecking, specialty chemical development, and enhancing multi-feedstock ethanol capabilities, the company appears poised for sustained growth and improved profitability in the coming years.

Godavari Biorefineries Ltd. (GBL) has achieved a significant milestone in the chemical industry by winning the esteemed ICC K.V. Mariwala Award for Effective Chemical Industry-Academia Partnership for the year 2024. This recognition comes in collaboration with the Institute of Chemical Technology Mumbai, highlighting the company's commitment to fostering strong industry-academia relationships.

Award Details and Recognition

The Indian Chemical Council (ICC) Awards Selection Committee carefully evaluated GBL's nomination and recommended the company for this prestigious honor. The ICC K.V. Mariwala Award is designed to recognize outstanding achievements and contributions in various facets of the chemical industry, with a particular focus on effective partnerships between industry and academia.

Collaboration with Institute of Chemical Technology Mumbai

Godavari Biorefineries' partnership with the Institute of Chemical Technology Mumbai played a crucial role in securing this award. This collaboration underscores the importance of synergy between industrial expertise and academic research in driving innovation within the chemical sector.

Award Presentation Ceremony

According to the company's disclosure to the stock exchanges, the award will be presented at the ICC Awards Presentation Function, scheduled for Friday, September 19, 2025. This event will honor various award winners for their exceptional contributions to the chemical industry for the year 2024.

Company's Response

Manoj Jain, Company Secretary & Compliance Officer of Godavari Biorefineries Limited, expressed the company's delight in receiving this recognition. In a statement to the stock exchanges, he mentioned, "We have great pleasure in informing you that the 'Awards Selection Committee' of ICC evaluated the nomination sent by Godavari Biorefineries Ltd. for ICC – K. V. MARIWALA AWARD FOR EFFECTIVE CHEMICAL INDUSTRY - ACADEMIA PARTNERSHIP and have recommended to confer the Award for the year 2024."

This award not only highlights Godavari Biorefineries' commitment to innovation but also emphasizes the growing importance of industry-academia collaborations in advancing the chemical sector. As the company prepares to receive this honor, it reinforces its position as a leader in fostering meaningful partnerships that drive progress in the chemical industry.