Godavari Biorefineries shares tumbled 5.54% to ₹252.55 following the announcement of its Q1 FY27 financial results, reflecting investor concerns over the deteriorating profitability despite revenue growth. The stock decline came after the company reported a consolidated net loss of ₹193 crore for the quarter ended June 2026, representing a 21% increase from the ₹166 crore net loss recorded in the corresponding quarter of the previous financial year.
The company's sales revenue increased by 4.6% to ₹557.87 crore in Q1 FY27, compared to ₹523 crore in the same quarter of the previous financial year. However, total expenses surged 5.3% year-on-year to ₹585.77 crore, with the fall in raw material costs (down 9.7% YoY) being more than offset by higher finished good purchases (up 20.9% YoY) and increased other expenses (up 2.4% YoY). The pre-tax loss widened to ₹25.84 crore from ₹22.30 crore in Q1 FY26, indicating that operational challenges extended beyond net profit levels.
The bio-based chemicals segment continued to show strong performance with 53% EBITDA growth and EBITDA margin expanding to 11.4% from 8.9% in Q1 FY26, reflecting benefits from debottlenecking initiatives and focus on higher-value specialty products. However, the overall EBITDA contracted sharply to ₹5 million from ₹47 million in the previous year quarter, with EBITDA margin compressing significantly to 0.1% from 0.9% year-on-year. The revenue mix also shifted significantly, with ethanol's contribution to revenue falling to 28% from 39% in Q1 FY26, while sugar and cogeneration increased its share to 40% from 33%.
During the quarter, the company commissioned a 200 KLPD grain-based distillery at Sameerwadi, increasing Godavari Biorefineries' total ethanol capacity to 800 KLPD. This expansion enhances feedstock flexibility and operational resilience across varying market conditions. In R&D developments, the company secured an Indian patent for a cost-effective process to manufacture branched alcohols and received a Japanese patent 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.
