Ethanol stock crashes 8% after reporting 85% YoY decline in net profits

The shares of one of the largest ethanol producers plunged 8 percent intraday after the company announced an 85 percent decrease in its net profits in Q3 FY25.

Price Action

With a market capitalization of Rs 1,180.63 crore, Godavari Biorefineries Ltd plunged 8 percent in Monday’s trading session and made an intraday low of Rs 228 per share compared to its previous closing price of Rs 247.95 per share. The stock retraced from its day’s low and was trading at Rs 230.70 which is 6.96 percent lower than the previous closing price.

What Happened

The shares of Godavari Biorefineries Ltd fell after the company reported its Q3FY24-25 results. Its net profits fell around 85 percent percent year on year from Rs 38.4 crore to Rs 5.8 crore in Q3FY25. However, on a quarter-on-quarter basis, the company stood at profits as compared to a loss of Rs 75 crore in Q2FY25. There was a one time impact of deferred tax payment valued at Rs 24.5 crore in Q2 FY25.

This was accompanied by a 12 percent increase in revenue from operations from Rs 398 crore to Rs 447.3 crore in Q3FY25. On a quarter-on-quarter basis, the revenue rose by 39.6 percent from Rs 320.95 crore. 

Further, the company’s EBITDA decreased by 15 percent year on year from Rs 46.8 crore to Rs 39.7 crore. 

Also read: Chemical stock jumps 11% after reporting 1028% QoQ increase in profits

Company Overview

Godavari Biorefineries Ltd is one of the largest ethanol producing companies with the widest portfolio of bio-based products in India. The company operates as an integrated bio-refinery that spans the entire value chain, including sugar,  ethanol, branded sugar, bio-based chemicals, and power.

Further, Godavari Biorefineries operates India’s first bio-based Ethyl Vinyl Ether (EVE) manufacturing facility. The company is also among the only 2 producers of natural 1, 3 Butylene Glycol (BG) globally. Their diversified marquee customers include Hindustan CocaCola Beverages Private Limited, Hershey, and LANXESS India Private Limited among others.

Budget 2025

The Pradhan Mantri JI-VAN Yojana, aimed at promoting biofuel adoption and boosting ethanol blending in petrol, has been allocated Rs 117 crore for the 2025-26 fiscal year. This marks a significant increase from an estimate of Rs 30 crore allocated to the scheme in the previous year.

Written by Shwetha Sairam

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