Godavari Biorefineries shares slide 5% on Q1 loss; smallcap stock 31% off peak

Shares of Godavari Biorefineries Ltd hit their lower circuit limit in Friday’s trade even as the ethanol manufacturer reported a narrowing of consolidated net loss at Rs 16.01 crore for the June quarter compared with Rs 26.10 crore in the year-ago period.

The Godavari Biorefineries stock fell 5 per cent to hit a low of Rs 279.30 on BSE over its previous day’s closing of Rs 294 per share. At this level, the stock is down 31.5 per cent from its 52-week high of Rs 408.25.

Among technical indicators, the scrip is trading below its 5-day, 10-, 20-, 30- and 50-day simple moving averages (SMAs), but higher than its 100- and 150-day SMAs.

For the June quarter, Godavari Biorefineries reported a 2.04 per cent rise in revenue from the operations at Rs 533.23 crore against Rs 522.52 crore in the corresponding quarter last year.

Commenting on the results, Samir Somaiya, CMD at Godavari Biorefineries, said, “Q1 FY26 has been a quarter of resilience and progress for our Company. Despite the seasonality inherent in some of our segments, we delivered an improved performance with revenue from operations at Rs 533.2 crore, an improvement over the same quarter last year, and achieved an EBITDA of Rs 6.5 crore. Our BioBased Chemicals segment recorded a strong 43 per cent year-on-year growth in EBITDA.

“On the ethanol front, from Sugar Season 2024-25 the restoration of the Ethanol Blending Program from Juice/Syrup helped us to produce more Ethanol from B heavy molasses. Our upcoming grain-based ethanol capacity will add a new growth lever,” Somaiya said.

“We are also proud to share significant progress in our Drug Discovery efforts. European patent for our novel anti-cancer molecule has been validated in Spain, the United Kingdom, and as a Unitary Patent covering multiple EU member states. Safety trials for the same molecule have been concluded without any dose limiting toxicity (DLT),” Somaiya added.