Margin improved, but Godavari Biorefineries stayed loss-making
Lower expenses lifted operating profit QoQ, but higher interest and depreciation kept consolidated profit before tax at Rs -19.75 cr.
Filed 04 Nov 2026, 19:48 IST · after market close · Godavari Biorefineries Ltd (GODAVARIB)
Key takeaways
- Consolidated operating margin improved 1.79 percentage points QoQ to 1.88% as expenses fell 3.31% while revenue declined 1.55%.
- Net loss narrowed 21.12% QoQ to Rs -15.24 cr, despite interest expense rising 10.48% to Rs 15.39 cr.
- Godavari Biorefineries’ 1.88% operating margin was 8.81 percentage points below the 10.69% median for 52 reported FMCG peers.
Price around the results
Operating profit improved, but losses remained
Consolidated revenue declined 1.55% QoQ, while expenses fell 3.31%; this lifted operating profit from Rs 0.52 cr to Rs 10.33 cr. Operating margin therefore expanded from 0.09% to 1.88%, but interest of Rs 15.39 cr and depreciation of Rs 15.20 cr kept profit before tax at Rs -19.75 cr and net profit at Rs -15.24 cr.
Lower costs supported the margin recovery
Expenses grew more slowly than revenue on a sequential basis, producing the 1.79 percentage-point margin improvement. Interest expense increased 10.48%, adding pressure below the operating line. The tax rate fell 2.44 percentage points to 22.81%, while other income of Rs 0.53 cr represented -2.68% of profit before tax and did not materially support earnings.
Margin remained well below the FMCG peer median
The available sequential trend shows operating margin improving from 0.09% in Q1FY27 to 1.88% in Q2FY27, although the company remained loss-making. Its margin was 8.81 percentage points below the 10.69% median among 52 FMCG peers that had reported, placing it fifth from the bottom.
Results were filed after market close
Godavari Biorefineries filed these consolidated Q2FY27 results at 19:48 IST on 4 November 2026, after market close. No post-results market reaction is covered.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹549 cr | ₹558 cr | -1.55% |
| Other income | ₹1 cr | ₹2 cr | -74.15% |
| Expenses | ₹539 cr | ₹557 cr | -3.31% |
| Operating profit | ₹10 cr | ₹1 cr | +1886.54% |
| Operating margin (%) | 1.88% | 0.09% | — |
| Interest | ₹15 cr | ₹14 cr | +10.48% |
| Depreciation | ₹15 cr | ₹14 cr | +4.90% |
| Profit before tax | ₹-20 cr | ₹-26 cr | +23.60% |
| Tax | ₹-5 cr | ₹-7 cr | +31.09% |
| Net profit | ₹-15 cr | ₹-19 cr | +21.12% |
| EPS (₹) | ₹-2.98 | ₹-3.78 | +21.16% |
Operating margin of 1.88% compares with a Fast Moving Consumer Goods sector median of 10.69% across 52 peers that have reported Q2FY27.
What to watch
- Whether operating margin stays above 1.88% in the next quarter.
- Interest expense relative to Rs 15.39 cr.
- Whether expenses continue to grow more slowly than revenue after falling 3.31% QoQ versus a 1.55% revenue decline.