Synopsis :- The ethanol stock surged 16 percent after announcing a partnership to develop bio-based alternatives to fossil-based chemicals, boosting confidence in its sustainability-led growth prospects.
A small-cap company engaged in the manufacturing of bio-based chemicals and ethanol has come into the spotlight after its stock surged 16 percent today, attracting strong investor interest amid heightened trading activity.
With the market capitalization of Rs. 1,458.00 crore, the shares of Godavari Biorefineries Limited is trading at Rs. 286.10, up by 12.35 percent from its previous day’s close price of Rs. 254.65 per equity share. The stock has touched an intraday high of Rs. 296, which implies a high of 16.24 percent from previous day’s closing price.
Why did the stock jump by 16 percent?
Godavari Biorefineries shares surged after the company announced a strategic partnership with Synthomer to develop and commercialise bio-based alternatives to fossil-based monomers, including bio-based butyl acrylate using GBL’s renewable butanol. The collaboration strengthens GBL’s sustainability-led growth strategy, enhances its positioning in low-carbon and green chemistry solutions, and opens up long-term opportunities from rising global demand for sustainable raw materials, boosting investor confidence.
Management View
According to the Managing Director, sustainability is central to Godavari Biorefineries’ strategy, and the collaboration with Synthomer underscores its focus on developing bio-based alternatives that reduce carbon footprint. By leveraging renewable feedstocks and integrated biorefinery capabilities, the company aims to support partners in shifting away from fossil-based materials, accelerate green chemistry adoption, and contribute to a more circular, resilient chemical industry aligned with its long-term vision.
About the Company & Financial
Godavari Biorefineries Limited (GBL) is a leading integrated bio-refinery in India, specializing in bio-based chemicals and biofuels with a diversified portfolio serving multiple industries. With sustainability at the core of its strategy, GBL focuses on lowering carbon intensity through bio-based feedstocks, energy efficiency, circular resource use, and waste reduction, while its integrated model supports bio-chemicals, ethanol, and green energy production. Listed on the BSE and NSE, the company is backed by a strong legacy of innovation, robust governance, and a long-term commitment to environmental and social responsibility.
A return on capital employed (ROCE) of about 5.79 percent and debt to equity ratio at 0.68 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 31.6x lower as compared to its industry P/E 46.4x.
The company reported revenue of Rs. 431 crore in Q2 FY26, registering a strong 34.3 percent YoY growth over Rs. 321 crore in Q2 FY25, though it declined 19.1 percent QoQ from Rs. 533 crore in Q1 FY26, indicating sequential softness despite annual expansion.
The company posted a net loss of Rs. 42 crore in Q2 FY26, which narrowed 44.0 percent YoY from a loss of Rs. 75 crore in Q2 FY25; however, losses widened 162.5 percent QoQ compared with a loss of Rs. 16 crore in Q1 FY26, reflecting pressure on profitability on a sequential basis.
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