Godavari Biorefineries Q3 Results: 12% YoY Revenue Growth and Expansion in Bio-Based Chemicals
Business and Industry Overview
Godavari Biorefineries Ltd., formerly known as The Godavari Sugar Mills Ltd., is an Indian company that operates in the bio-based chemicals, sugar, and power sectors. Established in 1939, it is part of the Somaiya Group and has a long history in the Indian market. The company is headquartered in India and has a diversified product portfolio comprising bio-based chemicals, sugar, rectified spirits, ethanol, other grades of alcohol, and 1 power. Godavari Biorefineries is one of the largest producers of ethanol in India and a pioneer in manufacturing ethanol-based chemicals. The company is also a leading manufacturer of various bio-based products, including MPO worldwide and natural 1,3 butylene glycol globally. The industry outlook for bio-based chemicals is positive, driven by increasing consumer demand for sustainable and environmentally friendly products. The global bio-based chemicals market is expected to grow significantly in the coming years, with factors such as rising crude oil prices and stringent environmental regulations favouring the adoption of bio-based alternatives. Godavari Biorefineries, with its diversified product portfolio and focus on research and innovation, is well-positioned to capitalize on this growth. The company’s recent initiatives, such as the investment in a new corn/grain-based distillery and the exclusive license agreement for manufacturing biobutanol and higher alcohols, demonstrate its commitment to expanding its presence in the bio-based chemicals market.
Latest Stock News
Patanjali Foods Ltd has successfully repaid ₹240 crore in term debt using proceeds from its IPO, significantly strengthening its balance sheet. This debt reduction is expected to lower repayment and interest costs, thereby enhancing free cash flows in the upcoming quarters. The company has also forged a strategic partnership with Catalyxx Inc., securing exclusive rights to advanced ethanol-to-biobutanol conversion technology, further reinforcing its position in sustainable bio-based solutions. Patanjali Foods has developed capabilities for the manufacture and sale of Methyl Propyl Oxide (MPO) and 1,3-Butanediol (1,3 BG), with commercial sales of these products having commenced in 2015. The company holds rights to produce up to 30,000 tons annually of biobutanol and other higher alcohols, with Phase 1 involving the construction and operation of a state-of-the-art 15,000 MTPA facility. However, there was a delay in the commencement of sugarcane crushing due to directives from the Karnataka Government aimed at ensuring better sugar recovery. Additionally, Patanjali Foods has expanded into pharmaceutical research by entering into a Memorandum of Understanding (MoU) with Dr. Sendurai Mani for the development of small molecule inhibitors for cancer. The company received approval from the Central Drugs Standard Control Organisation (CDSCO) in March 2021 to conduct clinical trials on patients with advanced solid tumors, marking a significant step in its foray into the healthcare and biotechnology sector.
Business Segments
- Sugar Production: GBL’s sugar segment involves the manufacturing of sugar from sugarcane, leveraging its integrated facilities to optimize production efficiency. The company produces various grades of sugar, catering to both domestic and international markets. By-products from sugar production are utilized in other processes, aligning with GBL’s commitment to sustainable and zero-waste manufacturing. The sugar industry in India is cyclical, influenced by factors such as monsoon patterns, government policies, and international price trends.
- Ethanol and Distillery Products: As one of India’s largest ethanol producers, GBL manufactures ethanol and other distillery products, including rectified spirit and extra neutral alcohol. The company’s distilleries have a combined capacity of 570 kilolitres per day, with plans to expand further. In December 2024, GBL announced a strategic investment of approximately ₹130 crore to establish a new 200 KLPD corn/grain-based distillery, enhancing its dual-feedstock capability and ensuring more resilient ethanol production.
- Bio-based Chemicals: GBL is a pioneer in the production of bio-based chemicals derived from renewable resources. In December 2024, GBL secured an exclusive license agreement with Catalyxx Inc. to manufacture biobutanol and higher alcohols in India, marking a significant step in sustainable innovation in the chemical industry. This partnership enhances GBL’s product offerings and strengthens its position in the global bio-based chemicals market.
- Cogeneration and Renewable Energy: GBL operates cogeneration plants that utilize bagasse, a by-product of sugar production, to generate renewable energy. This not only provides power for the company’s operations but also contributes to the grid, supporting India’s renewable energy initiatives. The cogeneration process exemplifies GBL’s commitment to sustainability and resource optimization.
Subsidiary Information
- Solar Magic Private Limited: Solar Magic Private Limited is a wholly-owned subsidiary of GBL, focusing on investments and holdings that complement GBL’s core operations. While specific operational details are limited, this subsidiary plays a role in GBL’s strategic investment initiatives.
- Cayuga Investments B.V.: Cayuga Investments B.V., based in the Netherlands, serves as GBL’s international investment arm, facilitating the company’s global expansion and partnerships. This subsidiary enables GBL to access international markets and technologies, supporting its growth objectives.
- Godavari Biorefineries B.V.: Godavari Biorefineries B.V., a step-down subsidiary through Cayuga Investments B.V., focuses on the European market, promoting GBL’s bio-based products and exploring new business opportunities in the region. This subsidiary enhances GBL’s presence in Europe, catering to the growing demand for sustainable products.
- Godavari Biorefineries Inc.: Incorporated in Delaware, USA, Godavari Biorefineries Inc. is a step-down subsidiary that manages GBL’s operations and business development activities in North America. This subsidiary is instrumental in establishing and strengthening GBL’s relationships with clients and partners in the American market.
Q3 FY25 Earnings
- Revenue of ₹447 crore in Q3 FY25 up by 12.4% YoY from ₹398 crore in Q3 FY24.
- EBITDA of ₹36 crore in this quarter at a margin of 8% compared to 11% in Q3 FY24.
- Profit of ₹5.7 crore in this quarter compared to a ₹38 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 398 | 447 | 2015 | 1687 |
| Expenses | 353 | 411 | 1867 | 1553 |
| EBITDA | 45 | 36 | 147 | 134 |
| OPM | 11.3% | 8.1% | 7% | 8% |
| Other Income | 2 | 3.6 | 7 | 14 |
| Net Profit | 38.4 | 5.7 | 20 | 12 |
| NPM | 9.5% | 12.7% | 1% | 0.7% |
| EPS | 9.2 | 1.1 | 4.7 | 2.9 |