Ethanol stock jumps 3% after announcing capex plan of ₹130 Cr to boost ethanol capacity 

During Monday’s trading session, the shares of a pioneer in renewable chemicals and biofuels surged nearly 3.7 percent to Rs. 369.05 on BSE, after the company announced an investment of Rs. 130 crores for a new corn/grain-based distillery at the Sameerwadi manufacturing unit. 

With a market cap of Rs. 1,834 crores, at 02:24 p.m., the shares of Godavari Biorefineries Limited were trading in the green at Rs. 359.55, up by around 1 percent, as against its previous closing price of Rs. 355.85. 

What’s the news: 

Godavari Biorefineries Limited (GBL), as per its latest regulatory filings with the stock exchanges, announced plans to invest in grain/corn-based ethanol to strengthen its ethanol manufacturing capabilities. The investment will be financed through internal accruals and debt. 

The company plans to invest around Rs. 130 crores to set up a new 200 KLPD corn/grain-based distillery as part of its existing operations. This addition will provide dual-feedstock flexibility, with the facility scheduled for commissioning in Q4 FY26. 

This initiative reflects GBL’s long-term vision of supporting India’s transition towards green energy while ensuring resilience against climate-induced risks. 

The new facility will offer operational fungibility, allowing the use of alternative feedstocks, like maize, to mitigate potential disruptions from factors such as unfavourable monsoons or changes in government policies. 

The expansion comes at a pivotal time as India’s ethanol demand rises, driven by the country’s ambitious blending targets and growing energy requirements for mobility. By adopting dual-feedstock technology, GBL aims to strengthen its market presence and maintain sustainable growth. 

Previous News: 

On 2nd December, GBL announced the signing of a strategic international license agreement with Catalyxx Inc. 

Through this partnership, GBL has secured exclusive rights to utilize Catalyxx’s advanced technology for converting ethanol into up to 30,000 tons of biobutanol and other higher alcohols in India and selling globally.

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Financials: 

Godavari Biorefineries reported a significant increase in revenue from operations, experiencing a year-on-year rise of nearly 34 percent, from Rs. 239.3 crores in Q2 FY24 to Rs. 321 crores in Q2 FY25. 

In contrast, its net loss widened during the same period from a loss of Rs. 65.2 crores to Rs. 75 crores, representing a decline of nearly 15 percent YoY. 

The company’s expansion plans are focused on select bio-based chemical segments during Q4 FY25 to address the growing market demand. 

The debt repayment of Rs. 240 crores from the IPO proceeds, leading to lower principal and interest outflows, will enhance GBL’s free cash flows. These improved cash flows will be strategically used to expand the bio-based chemicals business, starting from Q4 FY25. 

About the company: 

Incorporated in 1939, Godavari Biorefineries Limited is one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India. Its diversified product portfolio comprises bio-based chemicals, sugar, rectified spirits, ethanol, and other grades of alcohol and power. 

GBL is the only company in India to have such a vast portfolio of bio-based products such as MPO, natural 1,3 butylene glycol, ethyl vinyl ether and other bio-based chemicals. 

Written by Shivani Singh 

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