Godavari Biorefineries shares surged 14% to ₹258.50 following the announcement that China's patent office has granted the company a patent for compounds used in treating viral infections. According to the latest filing, the Chinese Patent Office granted the patent for the invention titled 'Use of Compounds for Treating Viral Infections' on September 15, 2026, with the original application filed back on May 10, 2021. The patent number is ZL 2021 8 0048053.9 with publication number CN 115867276 B, and is held by Godavari Biorefineries with M. Atawar, S. Gawade, P. Kakkar and S. Srivastava listed as inventors. The certificate issued by China's National Intellectual Property Administration states that the patent right takes effect from the date of grant announcement.
As of 1:43 pm, Godavari Biorefineries shares were trading 8.83% higher at ₹247, significantly outperforming the NIFTY50 index which was up 0.44%. The stock demonstrated strong trading interest with 22.27 lakh shares traded and a traded value of ₹56.06 crore by mid-morning. The company informed stock exchanges about the patent grant, with the stock being a constituent of the Nifty Sugar & Ethanol index. Notably, the stock had declined over 14% in the past year ahead of this positive development, though it is currently trading below its IPO price of ₹352.
The patent covers compounds that are disclosed for use in medicaments to treat viral infections, with specific mention of their use in the manufacture of medicines for treating viral infections. The filing did not mention commercialisation plans or further details on the compounds' therapeutic scope, with the notification not disclosing the specific viral infections targeted by the compounds, potential revenue from the patent, or the financial impact of the Chinese patent grant. This development positions Godavari Biorefineries in the pharmaceutical sector beyond its traditional biorefinery operations, though the company's core business remains focused on bio-based chemicals, ethanol, sugar, and power production.
Godavari Biorefineries reported mixed financial results for Q1 FY27, with the company's net loss widening to ₹19 crore compared with a loss of ₹16 crore in the corresponding quarter of the previous fiscal year. According to the latest earnings report, revenue from operations advanced 5% to ₹588 crore in the April-June period from ₹533 crore in the same period last year. However, EBITDA dropped significantly to ₹48 lakh and EBITDA margin contracted by 100 basis points. The stock has shown mixed performance in recent periods, gaining 3.16% over the past one week but declining 0.51% on a one-month basis.
This Chinese patent grant follows the company's recent expansion in its intellectual property portfolio. In June 2026, Godavari Biorefineries received a patent from the Japan Patent Office for '5-Hydroxy-1,4-Naphthalenedione for Use in the Treatment of Cancer'. The Japanese patent, registered on May 26, 2026, covers a class of compounds that showed inhibitory effects against cancer cells and cancer stem cells, including in breast and prostate cancer. The Japanese patent application dates back to October 2021 and names Sandeep Gavade, Sangeeta Srivastava, Prashant Karkal and Maithili Athavale as inventors.
