GODAVARIB - Godavari Bioref.

📊 NSE: GODAVARIB 🏢 Sugar 📅 Last Updated: 12/13/2025 22:26

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 10.88% YoY to INR 1,870.25 Cr in FY25. Segment-wise standalone growth: Sugar segment grew 26% to INR 682.15 Cr; Bio-based Chemicals grew 6.8% to INR 539.07 Cr; Distillery grew 4.1% to INR 584.95 Cr; Cogeneration grew 9.7% to INR 46.99 Cr.

Geographic Revenue Split

The company operates through subsidiaries in the Netherlands (Godavari Biorefineries B.V.) and the USA (Godavari Biorefineries Inc.), though specific percentage splits by region are not disclosed in available documents.

Profitability Margins

Gross margin expanded from 15% in H1 FY25 to 20% in H1 FY26, an improvement of 5% due to a better product mix. Standalone operating profit margin for FY25 was 3.76% compared to 5.22% in FY24. Net profit ratio was near 0% in FY25 due to one-time tax impacts.

EBITDA Margin

Consolidated EBITDA for FY25 was INR 120.31 Cr (6.4% margin), down 18.67% from INR 147.93 Cr (8.8% margin) in FY24. However, H1 FY26 showed recovery with EBITDA of INR 2.1 Cr compared to a loss of INR 41 Cr in H1 FY25.

Capital Expenditure

The company recently enhanced cane crushing capacity from 15,000 TCD to 18,000 TCD and distillery capacity from 400 KLPD to 600 KLPD. Specific historical and planned INR Cr values for future capex are not disclosed.

Credit Rating & Borrowing

Credit rating upgraded in January 2025 to CARE BBB+; Stable (Long-term) and CARE A2 (Short-term). Finance costs for FY25 were INR 71.61 Cr, down 5.16% YoY from INR 75.51 Cr due to debt reduction.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary feedstock. Grains are used as alternative feedstock for dual-feed distilleries. Cost of materials consumed was INR 1,242.31 Cr in FY25, representing 67% of standalone revenue.

Import Sources

Sugarcane is sourced locally from farmers near the Sameerwadi unit in Karnataka and Maharashtra. Grains are also sourced domestically.

Key Suppliers

Not disclosed in available documents, though the company notes dependence on a few suppliers for non-sugarcane raw materials.

Capacity Expansion

Current crushing capacity is 18,000 TCD (up from 15,000 TCD) and distillery capacity is 600 KLPD (up from 400 KLPD). Planned expansion includes de-bottlenecking and 2G ethanol projects.

Raw Material Costs

Raw material costs decreased 18.9% YoY to INR 1,242.31 Cr in FY25 from INR 1,532.12 Cr in FY24, reflecting improved procurement and inventory management.

Manufacturing Efficiency

Record sugarcane crushing of 24.65 Lakh tons at the Sameerwadi unit in FY25 boosted ethanol output and distillery performance.

📈 Strategic Growth

Expected Growth Rate

14%

Growth Strategy

Growth will be driven by expanding high-value bio-based specialty chemicals, de-bottlenecking existing units, restoring the Ethanol Blending Program, and reducing finance costs through debt reduction. The company is also expanding into pharmaceutical marketing via its new US subsidiary, Sathgen Therapeutics.

Products & Services

Sugar, Ethanol, Bio-based Chemicals (Ethyl Acetate, MPO), Power (Cogeneration), and pharmaceutical marketing services.

Brand Portfolio

Jivana

New Products/Services

2G ethanol, Bio-CNG, and pharmaceutical drugs developed by Godavari Biorefineries Ltd.

Market Expansion

Expansion into the USA market through the acquisition of Sathgen Therapeutics, LLC for pharmaceutical business development.

Strategic Alliances

Collaborations with research institutions for R&D and agile product development.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable, bio-based alternatives to petroleum-based chemicals. The restoration of India's Ethanol Blending Program is a major positive driver for distillery volumes.

Competitive Landscape

Faces intense competition from neighbouring sugar mills and global chemical producers, leading to pricing pressure.

Competitive Moat

Moat is built on a fully integrated biorefinery model and dual-feedstock capability, allowing the company to switch between sugar and ethanol production based on market prices, which is highly sustainable.