The ethanol industry in India is becoming a key part of the country’s clean energy journey. With India importing nearly 80% of its crude oil needs, the government is turning to ethanol as a cleaner, homegrown alternative to reduce fuel costs and pollution. One big reason India is focusing on ethanol is its strong agricultural base—especially the high production of sugarcane, which makes it easier and more affordable to produce ethanol locally. Ethanol is mainly made from sugarcane, maize, and other crops. It is blended with petrol to lower carbon emissions from vehicles. But it’s not just used as fuel—ethanol is also important in making alcohol, medicines, cosmetics, personal care products, cleaning items, and plastics. This wide range of uses makes it a highly valuable and in-demand product.
To boost ethanol production, the Indian government has taken several steps. It launched the Ethanol Blended Petrol (EBP) Programme and brought forward its target of achieving 20% ethanol blending in petrol from 2030 to 2025. As of May 2024, India had already reached 15% blending—showing rapid progress. The government is also encouraging ethanol production from surplus food grains, damaged grains, and sugarcane juice, offering incentives and easier approvals for ethanol plants. The Indian ethanol market was valued at $6.51 billion in 2023 and is projected to grow to $10.45 billion by 2029, at a CAGR of 8.84%. This growth is attracting investor interest, especially in sugar companies listed on the stock market that are producing ethanol. With strong policy support, rising demand, and expanding production capacity, the future of the ethanol market in India looks bright—both for the economy and for the environment.
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For investors seeking to be part of India’s green energy growth story, ethanol stocks are emerging as an exciting opportunity. With strong government support, rising demand, and a shift towards cleaner fuels, several companies in this space are gaining momentum in the stock market. Let’s take a look at the top 10 ethanol stocks making headlines today.
Top 10 Ethanol Stocks in India for 2025
Based on market capitalization and growth potential, here are the top ethanol stocks in India:
1. EID Parry (India) Ltd.
EID Parry is one of the oldest and most trusted companies in India’s sugar and ethanol industry. It is part of the large Murugappa Group and is based in Chennai. The company started India’s first sugar plant in 1842 and now runs six sugar plants and one separate distillery in South India. These plants have modern technology and a strong capacity to crush sugarcane, produce ethanol, and generate power.
EID Parry can crush 40,300 tonnes of sugarcane per day and produce 417,000 litres of ethanol daily. It also generates 140 MW of electricity. The company works closely with over one lakh farmers, helping them increase crop yields using better methods. Apart from ethanol and sugar, EID Parry is a global leader in producing organic spirulina and microalgae products through its nutraceutical division. In the latest quarter, the company sold over 2.17 crore litres of ethanol, and the average selling price improved compared to last year. Even though total revenue was a bit lower due to less sugar release and no exports, the ethanol business stayed strong.
Why it’s a good pick for investors:
EID Parry has a strong track record, reliable operations, and growing ethanol capacity. With government policies supporting ethanol blending and a rising focus on clean energy, the company is in a great position to grow further. This makes it a solid and promising choice for investors looking to benefit from the ethanol sector.
2. Balrampur Chini Mills Ltd
Balrampur Chini Mills is one of the biggest and most efficient sugar companies in India. It is based in Uttar Pradesh and runs 10 sugar factories. The company has a strong role in ethanol production and also produces power using co-generation. It uses by-products like molasses from sugarcane to make ethanol in its distilleries.
Balrampur Chini has been actively expanding its ethanol production capacity in recent years. With a total distillation capacity of over 1,050 KLPD (kilolitres per day), it stands among the top ethanol producers in the country. This positions the company well to benefit from the government’s push for 20% ethanol blending in petrol by 2025. Its strong presence in Uttar Pradesh, a major sugarcane-producing state, further supports its growth. Financially, the company has delivered solid performance, recording a 1-year stock return of over 56%.
Continuous investments in upgrading capacity, adopting new technologies, and controlling costs have helped Balrampur Chini maintain steady and sustainable growth, making it a strong contender in the ethanol sector for investors.
Why it’s a good pick for investors:
Balrampur Chini Mills is a strong name in both sugar and ethanol production. Its large-scale operations, expanding ethanol capacity, and location in Uttar Pradesh—India’s top sugarcane-growing state—give it a big advantage. With the government pushing for more ethanol blending, the company is in a good position to grow even more in the coming years. That makes it a smart option for investors interested in the green energy sector.
3. Triveni Engineering & Industries Ltd
Triveni Engineering & Industries Ltd, started in 1932, is one of India’s top sugar companies. It runs seven modern sugar mills in Uttar Pradesh and works with over 3 lakh sugarcane farmers. This strong farmer network helps the company maintain a steady supply and good quality. Triveni is also active in other areas like water treatment, power transmission, engineering, and defence—making it a well-diversified business. On the ethanol front, it has a capacity of 660 KLPD and plans to increase it to 1,100 KLPD. The company will use around 4.5 million tonnes of sugar to make ethanol, which is about 12% of its total sugar output.
Why it’s a good pick for investors:
Triveni Engineering & Industries is a good pick for investors because it has a strong presence in Uttar Pradesh, India’s largest sugarcane-producing state. The company is steadily increasing its ethanol production capacity to take advantage of the government’s goal of 20% ethanol blending by 2025. Its diversified business across sugar, engineering, water treatment, and defence helps reduce risk and provide stability. With clear plans to expand ethanol production and consistent financial performance, along with strong government support for ethanol, Triveni shows strong long-term growth potential for investors.
4. Shree Renuka Sugars Ltd
Shree Renuka Sugars is one of the largest ethanol producers in India, with multiple sugar mills and distilleries that convert sugarcane and molasses into ethanol. The company has steadily increased its ethanol production capacity to meet the growing demand driven by India’s ambitious ethanol blending targets. Its facilities use modern technology to ensure efficient production and cost management. Shree Renuka is well-positioned to benefit from the government’s push for higher ethanol blending in petrol, as ethanol remains a key renewable fuel in India’s energy transition.
Why It’s a Good Pick for Investors:
Shree Renuka Sugars stands out because of its large production capacity and strategic focus on ethanol, which is expected to see rapid growth in India over the coming years. Despite recent stock volatility, the company is working on operational improvements and capacity expansion, signalling strong future potential. Investors looking for exposure to India’s clean energy shift and renewable fuels will find Shree Renuka a promising option, as it combines scale, government support, and a clear growth path in the ethanol sector.
5. Piccadily Agro Industries Ltd
Piccadily Agro Industries is a major player in sugar and ethanol production. The company owns sugar factories and distilleries that produce ethanol from sugarcane by-products like molasses. It has been increasing its ethanol production capacity to take advantage of India’s growing demand for biofuels. With the government pushing for higher ethanol blending in petrol, Piccadily Agro is well placed to benefit from this rising market.
Why It’s a Good Pick for Investors:
Piccadily Agro Industries is a good choice for investors who want to invest in the growing ethanol market. The company is focused on expanding its ethanol business, which is supported by strong government policies. Its steady production capacity and cost management help keep profits stable. Although the stock has faced some recent challenges, the long-term outlook is positive due to increasing ethanol demand and blending targets. For investors looking at India’s green energy future, Piccadily Agro offers a strong opportunity to grow with the ethanol sector.
6. Dalmia Bharat Sugar and Industries
Dalmia Bharat Sugar and Industries is a well-known company in the sugar and ethanol sector. It operates several sugar mills and distilleries that produce ethanol from sugarcane and molasses. The company has steadily increased its ethanol capacity to meet the growing demand driven by the government’s target of 20% ethanol blending by 2025. Dalmia Bharat Sugar’s ability to produce power through co-generation also adds to its strong business model.
Why It’s a Good Pick for Investors:
With a market capitalization of ₹3,553 crore and a price-to-earnings (P/E) ratio of around 50.9, Dalmia Bharat Sugar is showing strong investor confidence. The stock has delivered a 14.9% return in the past year, reflecting steady growth. The company’s focus on expanding ethanol production positions it well for future gains as India moves towards higher ethanol blending in petrol. Its efficient operations, solid balance sheet, and integrated business model make it a promising investment in the ethanol space. Investors looking for a growing player in renewable energy and sugar production will find Dalmia Bharat Sugar a reliable choice.
7. Bajaj Hindusthan Sugar Ltd
Bajaj Hindusthan Sugar is one of India’s largest sugar producers and a key player in ethanol production. The company has several distilleries that convert molasses into ethanol, helping it benefit from the government’s push for higher ethanol blending. With a total ethanol capacity of over 1,200 kilolitres per day, Bajaj Hindusthan is positioned to grow as demand for ethanol rises.
Why It’s a Good Pick for Investors:
Though the stock has faced challenges recently with a negative 23.24% return over the past year and a loss reported, its large production capacity and strategic focus on ethanol give it strong long-term potential. Bajaj Hindusthan is working on improving its financial health and expanding its ethanol business to meet the 20% blending target set for 2025. Investors looking for opportunities in the ethanol sector might consider this stock for a potential turnaround, especially as government policies continue to support biofuels and clean energy.
8. Uttam Sugar Mills Ltd
Uttam Sugar Mills is a well-established sugar producer with a growing focus on ethanol production. The company uses molasses from its sugar operations to produce ethanol, helping it tap into India’s increasing demand for cleaner fuel. Uttam Sugar Mills has been steadily increasing its ethanol capacity, positioning itself to benefit from the government’s goal of 20% ethanol blending by 2025.
Why It’s a Good Pick for Investors:
Uttam Sugar Mills offers steady growth potential with its expanding ethanol business and consistent financial performance. The stock has shown a modest positive return of about 2% in the past year, reflecting stability. With ongoing government support for biofuels and rising ethanol demand, Uttam Sugar Mills is well-placed to grow in the coming years. Investors seeking a balanced and growing ethanol stock may find Uttam Sugar Mills a reliable choice.
9. Dwarikesh Sugar Industries
Dwarikesh Sugar Industries is a major player in sugar production with a growing focus on ethanol. The company uses by-products from sugarcane like molasses to produce ethanol, supporting India’s push towards cleaner fuel. It has been investing in expanding its ethanol capacity to meet the increasing demand driven by government policies.
Why It’s a Good Pick for Investors:
Despite a recent decline in stock price (-27%), Dwarikesh Sugar Industries shows strong growth potential due to the expanding ethanol market. With a solid production base and a focus on increasing ethanol output, the company is positioned to benefit from the government’s 20% ethanol blending target by 2025. Its steady capacity expansion and focus on cleaner energy make it a promising option for investors looking for long-term gains in the ethanol sector.
10. Dhampur Sugar Mills Ltd
Dhampur Sugar Mills is one of the oldest and well-established sugar producers in India. The company also produces ethanol from sugarcane by-products like molasses. It is increasing its ethanol production capacity to take advantage of the growing demand and government support for biofuels.
Why It’s a Good Pick for Investors:
Although the stock has faced a recent decline (-27.24%), Dhampur’s strong presence in the sugar industry and growing focus on ethanol production position it well for future growth. The company benefits from India’s push to increase ethanol blending in petrol to 20% by 2025. With steady capacity expansion and improved cost management, Dhampur Sugar Mills is a good choice for investors interested in the ethanol sector’s long-term potential.
Investor’s Outlook on the Ethanol Sector in India
The ethanol industry in India presents a strong investment opportunity as the country pushes toward cleaner, renewable energy. With the government advancing its target to achieve 20% ethanol blending in petrol by 2025, demand for ethanol is set to grow rapidly. India’s large sugarcane production provides a steady supply of raw materials, helping ethanol producers scale up efficiently. Many sugar companies are expanding their ethanol capacity and modernising their plants to take full advantage of supportive government policies, including better pricing and blending mandates.
For investors, this sector offers promising growth driven by rising demand, increasing production, and strong policy support. While stock prices may show some volatility, the long-term outlook is positive due to steady financial performance and expanding market size. Ethanol stocks combine the benefits of sustainability and solid business fundamentals, making them attractive choices for those looking to invest in India’s green energy future.
Key factors to consider before investing in ethanol stocks in India
1. Government Support & Policies
Government policies like the Ethanol Blending Program and National Biofuel Policy play a huge role in the growth of ethanol companies. Incentives such as subsidies and tax benefits can positively impact profitability. Regular policy updates often guide investor sentiment in the sector. Companies aligned with these programs are more likely to grow. Always track the latest government announcements before investing.
2. Ethanol Production Capacity
A company’s ability to produce ethanol at scale is a major factor in meeting rising demand. Larger production capacity means better market share and more revenue. Efficient distilleries also help reduce operational costs. Recent or planned capacity expansions signal long-term growth potential. Choose companies with modern plants and steady supply chains.
3. Raw Material Access & Weather Impact
Ethanol production depends heavily on crops like sugarcane and maize. Poor weather conditions can affect crop yield, disrupting production and profits. Companies with access to reliable raw materials and strong farmer networks are better positioned. Also, those with diversified sourcing face less production risk. Climate-resilient strategies are a key indicator of operational strength.
4. Financial Performance
Sound financials are a must before any investment. Look at revenue, profit margins, debt levels, and growth trends over the past few years. Healthy cash flow and consistent earnings show business stability. Also consider dividend payouts and return ratios. Avoid companies with weak balance sheets or frequent losses.
5. Market Share & Competitiveness
Companies that win more ethanol supply contracts from Oil Marketing Companies (OMCs) often have better margins. Competitive pricing, strong logistics, and steady output help win these auctions. Bigger players usually enjoy better brand value and customer trust. A high market share reduces the impact of smaller competitors. Consider firms with strong positioning and demand.
6. Quality of Management
The management team makes all the difference in navigating policy changes and market shifts. Experienced and transparent leadership ensures responsible business decisions. Track record, ethical practices, and clear communication with shareholders add trust. Leadership with a long-term vision drives consistent performance. Look for companies led by professionals, not just promoters.
India’s ethanol industry is at a transformational stage, driven by the government's push for energy security and cleaner alternatives. With rising demand, strong policy support, and the ambitious target of 20% blending by 2025, ethanol is no longer just a by-product of sugar—it’s a high-growth investment opportunity. Companies with strong production capacities, robust supply chains, and forward-looking management stand to benefit the most.
For investors, this is a sector worth watching closely. While short-term volatility may occur due to crop cycles and pricing pressures, the long-term fundamentals remain strong. With proper research and risk assessment, ethanol stocks can offer both growth potential and diversification for your portfolio.
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