Margin expansion, lower finance costs and focus on high-value bio-based chemicals drive profitability; U.S. patent and strategic collaborations bolster innovation pipeline

Godavari Biorefineries Limited (GBL), one of India’s largest producers of ethanol and a pioneer in bio-based specialty chemicals, reported a strong turnaround performance in Q3 FY26, marked by improved profitability, margin expansion and disciplined cost management.

For the quarter ended December 2025, total Income rose to Rs 461.9 crore compared with Rs 450.8 crore in Q3 FY25. EBITDA increased 13.8 per cent year-on-year to Rs 45.1 crore, while EBITDA margin expanded to 9.8 per cent from 8.8 per cent a year earlier, reflecting operating leverage and a sharper focus on high-margin segments. Profit Before Tax (before exceptional items) surged 152.2 per cent year-on-year to Rs 21.4 crore, underscoring the company’s improving earnings trajectory. Finance costs declined 46 per cent year-on-year during the quarter, further strengthening bottom-line performance and cash flows.

For the nine months ended FY26, Total Income stood at Rs 1,430.2 crore. EBITDA turned positive at Rs 47.2 crore compared to a loss of Rs 1.4 crore in the corresponding period last year, while PBT (before exceptional items) narrowed significantly to a loss of Rs 31.2 crore from Rs 97.3 crore in 9M FY25, signaling steady financial recovery.

Segment-wise, the Bio-based Chemicals business reported EBITDA of Rs 10.9 crore, marking a 76.7 per cent year-on-year increase, while the Sugar & Cogeneration segment delivered EBITDA of Rs 32.1 crore, up 28.1 per cent year-on-year. The Ethanol segment contributed EBITDA of Rs 4.2 crore during the quarter. Specialty chemicals accounted for 62 per cent of the Bio-based Chemicals basket in 9M FY26, and the company expects this share to rise further as it scales high-value offerings.

During the quarter, GBL secured a U.S. patent for a novel anti-cancer molecule targeting triple-negative breast cancer, reinforcing its R&D-led growth strategy. The company’s DME-to-CO₂ technology initiative is progressing with pilot plant activities underway. In a sustainability-focused collaboration, GBL partnered with Synthomer to develop bio-based alternatives to fossil-based monomers, with Synthomer commercializing bio-based butyl acrylate using GBL’s bio-based butanol.

The company also reported strong momentum in its consumer segment, with its Jivana brand crossing Rs 100 crore in revenue in the first nine months of FY26. Looking ahead, GBL’s fungible grain-based ethanol capacity is set for commissioning in Q1 FY27, positioning the company to benefit from the restoration of India’s ethanol blending program and incremental demand from maize-based capacities.

Commenting on the results, Chairman & Managing Director Samir Somaiya said Q3 FY26 marked a quarter of significantly improved profitability driven by operating leverage and disciplined execution. He noted that margin expansion, reduced finance costs, and a continued focus on high-potential bio-based specialty chemicals, sustainability-led innovation, and capacity optimization position the company strongly for long-term growth and value creation.