Godavari Biorefineries Ltd

Key Update

• Show Cause Notice from AC GST Audit Belgavi, Karnataka received on 21 August 2026.
• GST demand ₹17,02,29,150; ENA supplied to KSBCL without GST; company to reply/appeal.

Financial Performance

• Q1 FY27 revenue from operations: INR557.9 crores; total income: INR559.9 crores.
• Revenue growth YoY: 4.6%; total income growth YoY: 4.9%.
• EBITDA: INR2.6 crores; margin: 0.5%.
• Bio-based chemicals: revenue INR168.7 crores; EBITDA INR19.2 crores; margin 11.4%.
• Integrated sugar/cogeneration/ethanol: revenue INR377.9 crores; EBITDA loss INR14.6 crores.
• Consolidated net loss: INR19.3 crores.
• Sugar inventory end of quarter: 65,000 tons; distillery capacity commissioned: 200 klpd; total capacity: 800 klpd.

Segment Trends

• Bio-based chemicals revenue grew; EBITDA up 53% YoY; margin 11.4%.
• Integrated sugar/cogeneration/ethanol under pressure on feedstock costs; sugar realizations improving.
• Closing sugar inventory: 65,000 tons; long-term contracts: 15,000–20,000 tons.
• DME pilot trials ongoing; decision readout by March 2027.
• Plan to debottleneck bio-based specialty chemicals; INR25 crores capex planned.
• Maize-based front-end capacity options to improve ethanol/sugar mix.

Projects and Capex

• 200 klpd grain-based distillery commissioned at Sameerwadi; total capacity 800 klpd.
• Plan to add 160 klpd fungible capacity; front-end grain prep expansion possible.
• Debottlenecking investments: INR25 crores for bio-based chemicals.
• Ethanol/sugar platform to leverage integrated, fungible capacity.

R&D and IP

• Japanese patent granted for novel anticancer molecule; CDSCO preliminary efficacy trials filed.
• Trials expected to commence from Q3 FY27, subject to approvals.
• Indian patent secured for cost-effective branched alcohols process.
• TNBC drug discovery: pre-clinical safety completed; pursuing out-licensing.

Q&A Highlights

• DME pilot timeline: readout by March 2027; progress continues.
• Bio-butanol: MoU with Synthomer; exploring additional customers.
• CDSCO preliminary efficacy trials: permission expected by end of Q3 FY27.
• No immediate fund-raising; resources available within the system.
• Ethanol demand: E20 rollout; drafts for E85/E100; flex-fuel vehicles in market.
• Monsoon risk: dam levels improved; rainfall supportive; irrigation coverage maintained.

Outlook and Guidance

• No formal FY27 full-year guidance; management expects improvement in operating performance through the year.
• Focus on debottlenecking, higher-value product mix, and stronger margins.

IP patent grant

• European Patent Office granted the patent titled Pharmaceutical Composition and a Process to Prepare the Same.
• Invention covers a pharmaceutical composition with novel anti-cancer compounds and a solubilising agent to boost solubility.
• Oral administration suggested; applications include treatment of breast and prostate cancers.
• Grant certificate attached; strengthens the company's oncology intellectual property portfolio.
• Patent number EP4404920 granted on 15 July 2026.

Meeting Details

• Date: August 12, 2026
• Type/Mode: Group meeting, physical
• Event: Emkay Confluence-2026 – India: Full Throttle Ahead
• Key participants: Company officials; Company Secretary & Compliance Officer
• Purpose: Investor interaction based on publicly available information; no unpublished price-sensitive information discussed

Meeting Details

• Event: Audio recording of Q1 FY27 earnings conference call uploaded to the company website.
• Date: Filing dated August 7, 2026.
• Mode: Virtual earnings call; audio recording made available online.
• Key participants: not disclosed in the filing.
• Purpose: Earnings discussion for Q1 FY27.

Business Overview

• Integrated sugar, co-gen and ethanol business with dual-feedstock distillery flexibility.
• Sameerwadi 200 KLPD distillery commissioned; total ethanol capacity now 800 KLPD.
• MSP008-22 lead anti-cancer molecule; Japanese patent granted; CDSCO preliminary efficacy filing.
• Dual-feedstock capacity expansion planned to 360 KLPD within an 800 KLPD limit.
• Bio-based chemicals focus with energy-transition emphasis; partnerships with Synthomer and Catalyxx.
• DME project with ICT progressing; pilot-scale validation; trials expected by Q4 FY27.
• Participation in ethanol blending program; favorable sugar market dynamics expected to support growth.

Operational Highlights

• Sameerwadi distillery adds 60 million litres annual ethanol capacity.
• Total distillery capacity increased to 800 KLPD.
• Debottlenecking completed FY26; improvements visible in FY27.
• Added 200 KLPD corn/grain distillery; enhances dual-feedstock flexibility.
• Bio-based chemicals EBITDA margin expanded to 11.4% in Q1 FY27.
• Indian patent granted for branched alcohols manufacturing.
• DME and Bio-Butanol partnerships advance; pilot tests in progress.
• Responsible Care certification renewal completed.

Financial Performance

• Revenue from operations ₹557.9 Cr; up 4.6% YoY.
• Total income ₹559.9 Cr; YoY growth 4.9%.
• Gross profit ₹100.9 Cr; gross margin 18.0%.
• EBITDA ₹2.6 Cr; EBITDA margin 0.5%.
• Profit after tax: -₹19.3 Cr in Q1 FY27.
• Bio-based Chemicals EBITDA margin 11.4% in Q1 FY27, up from 8.9%.

Strategic Priorities & Outlook

• Expand corn/grain capacity to 360 KLPD within 800 KLPD limit.
• Participate in ethanol blending program; leverage favorable sugar dynamics.
• Advance bio-based growth: DME, Bio-Butanol, global partnerships.
• Feedstock diversification to ensure year-round supply.
• MSP008-22 trial schedule: start Q3 FY27; preliminary results Q2 FY28; completion by FY30.
• DME pilot tests to conclude by Q4 FY27.

Risks & Mitigation

• El Niño-related risks may affect sugar yields; mitigate via improved yields and diversified feedstocks.
• Policy changes and market conditions; mitigation through capacity expansion and feedstock diversification.
• Global supply chain disruptions and energy-price parity shift favor bio-based alternatives.

Business Overview

• Integrated sugar, co-gen, ethanol, and bio-based chemicals business; dual-feedstock distillery adds feedstock flexibility.
• Dual-feedstock distillery enhances feedstock flexibility and year-round production.

Key Operational Highlights

• Sameerwadi 200 KLPD distillery commissioned; total capacity now 800 KLPD.
• Capacity add of 60 million litres annual ethanol.
• Bio-based Chemicals EBITDA margin expanded to 11.4% in Q1 FY27.
• Indian patent granted for branched alcohols process.
• CDSCO filing for preliminary efficacy trials of MSP008-22.
• Debottlenecking completed FY26 translating to better earnings in FY27.

Financial Performance

• Total Income ₹559.9 Cr, up 4.9% YoY.
• Revenue from Operations ₹557.9 Cr, up 4.6% YoY.
• Gross Profit ₹100.9 Cr; gross margin 18.0%.
• EBITDA ₹2.6 Cr; EBITDA margin 0.5%.
• Profit after tax: ₹-19.3 Cr in Q1 FY27.
• Sugar realizations supported revenue growth in Q1 FY27.

Capital Structure & Liquidity

• No debt or liquidity details disclosed in this release.

Strategic Priorities & Outlook

• Explore dual-feedstock capacity expansion to 360 KLPD within 800 KLPD.
• Participate actively in ethanol blending program; leverage sugar market dynamics.
• DME pilot trials with ICT; planned completion by Q4 FY27.
• Bio-based growth via monomer and bio-butanol partnerships; seeking additional partners.
• Lead MSP008-22 anti-cancer molecule: CDSCO efficacy trials filed.

Risks & Mitigation

• El Niño-related yield risks acknowledged; focus on yield improvements.

Governance & Leadership

• No material governance changes disclosed.