Q1 2027 Godavari Biorefineries Ltd Earnings Call Transcript
Key Points
- Successfully commissioned a 200 KLPD grain-based distillery, increasing total distillery capacity to 800 KLPD and enhancing feedstock flexibility.
- Bio-based chemicals business delivered strong performance with revenue up 19.4% YoY and EBITDA up 53%, with margins expanding to 11.4%.
- Secured a Japanese patent for a novel anti-cancer molecule and filed an application with CDSCO for preliminary efficacy trials for triple-negative breast cancer treatment.
- Plans to invest INR 25 crores in further debottlenecking the bio-based specialty chemicals business, targeting quarterly revenue growth to INR 240 crores.
- Government's new draft guidelines for E-85 and E-100 fuels and the successful E-20 rollout support long-term ethanol demand outlook.
- Evaluating the addition of 160 KLPD fungible capacity to optimize existing infrastructure and capture opportunities from shifting sugar-ethanol economics.
- Consolidated EBITDA declined significantly to INR 2.6 crores from INR 6.5 crores YoY, with margins contracting to 0.5%.
- Integrated sugar, cogeneration, and ethanol segment reported a widened EBITDA loss of INR 14.6 crores due to challenging feedstock conditions and higher manufacturing costs.
- Net loss widened to INR 19.3 crores from INR 16 crores in Q1 FY26, impacted by lower operating profitability and higher depreciation.
- Profitability was negatively affected by elevated inventory carrying costs and higher raw material prices during the quarter.
- DME pilot trials are still ongoing with results not expected until March 2027, delaying potential commercialization timelines.
- Uncertainty regarding monsoon and dam levels in operating regions poses a risk to feedstock availability and overall performance.
Ladies and Gentlemen, Good day and welcome to Godavari Bio Refineries Limited Q1 FI27 Earnings Conference Call. (Operator Instructions)
I now hand the conference over to Ms. Prachi Ambre from MUFG, Investor Relations. Thank you, and over to you, maâam.
Thank you so much. Good morning, everyone. And welcome to Godavari Biorefineries Ltd Q1 FY27 Earnings Conference Call. Today on the call, we have Mr. Samir Somaiya, Chairman and Managing Director. Mr. Ashish Sinha, Deputy General Manager, Investor Relations and Finance, to provide insights on the operational and financial performance. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward-looking statements which are completely based upon our beliefs and expectations as of today.
The statements are not a guarantee of our future performance and involve unforeseen risks and uncertainties. With this, I would like to hand over the call to Samir Sir for his opening remarks.
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