India is progressing rapidly in the area of cleaner fuel, and ethanol is one of the main substances leading the charge. Ethanol is a renewable fuel obtained from sugarcane, maize, and other agricultural products, which is being mixed with petrol in order to cut pollution and reduce the reliance on pricey oil imports. Given the government’s initiative to introduce 20% ethanol mixing by the year 2025, the ethanol industry is booming, and it’s an exciting place to be.
If you want to invest in this growing market, here are the 5 best ethanol stocks to invest in India in 2025, as per market analyst ratings, market size, and growth potential.
Why Invest in Ethanol Stocks?
India depends on imports for around 80% of its crude oil, thereby straining the country’s foreign exchange reserves. Through the production of ethanol in the country and its mix with.petrol, India will be able to decrease its reliance on fossil fuels as well as reduce emissions of carbon. The National Biofuels Policy as well as the Ethanol Blending Program are the initiatives behind this positive change as the supply of ethanol has become a lucrative long-term investment.
The ethanol industry in India was estimated to be valued at approximately USD 3 billion in 2024 and is projected to rise beyond USD 10 billion by 2033, at an impressive CAGR of 14% annually.
Top 5 Ethanol Stocks in India (2025)
Here are the best ethanol stocks in India based on analyst ratings and market performance:
| Rank | Stock Name | Analyst “Buy” Rating (%) | Market Cap (₹ Crore) |
|---|---|---|---|
| 1 | EID Parry (India) Ltd | 80% | ₹14,533 |
| 2 | Balrampur Chini Mills Ltd | 60% | ₹11,493 |
| 3 | Shree Renuka Sugars Ltd | 71% | ₹9,985 |
| 4 | Triveni Engineering & Industries Ltd | – | ₹9,853 |
| 5 | Bajaj Hindusthan Sugar Ltd | – | ₹5,181 |
List of the top 5 Ethanol Stocks in India
#1. EID Parry (India) Ltd
EID Parry is one of India’s oldest and most respected sugar and ethanol producers, with a history dating back to 1842. The company is part of the Murugappa Group and operates six sugar mills and one distillery across South India. EID Parry has a distillery capacity of 417 kilolitres per day and also produces nutraceuticals and organic spirulina products.
The company’s diversified business model, strong financials, and focus on ethanol production make it a top pick for investors. EID Parry also has a majority stake in Coromandel International, a leading fertilizer company, which adds stability to its portfolio.
#2. Balrampur Chini Mills Ltd
Balrampur Chini Mills is one of India’s largest sugar producers, with 11 sugar factories in Uttar Pradesh and a massive ethanol distillery capacity of 1,050 kilolitres per day. This translates to around 35 crore litres of ethanol production annually, making it one of the biggest ethanol producers in the country.
The company has consistently delivered strong financial results, with FY24 revenue growing 20% year-on-year and net profit surging 88%. Balrampur Chini is known for its efficient operations, strong management, and ability to leverage government policies for growth.
#3. Shree Renuka Sugars Ltd
Shree Renuka Sugars is India’s largest ethanol producer by capacity, with a distillery capacity of 1,250 kilolitres per day. The company is majority-owned by Singapore’s Wilmar International and operates eight sugar mills and two large refineries in India.
Despite facing financial challenges in the past, Shree Renuka has been expanding aggressively and is now benefiting from rising ethanol demand. The company is a turnaround story for investors, with high growth potential as it utilizes its new capacity and improves profitability.
#4. Triveni Engineering & Industries Ltd
Triveni Engineering is one of India’s largest sugar and ethanol producers, with seven sugar mills in Uttar Pradesh and a distillery capacity of 860 kilolitres per day. The company is diversified, with businesses in power transmission, water treatment, and engineering.
Triveni’s ethanol expansion is a major growth driver, and the company is also entering the beverage alcohol market. Its strong balance sheet and diversified portfolio make it a balanced investment option for those looking to invest in ethanol stocks.
#5. Bajaj Hindusthan Sugar Ltd
Bajaj Hindusthan Sugar is one of India’s largest sugar producers, with 14 sugar plants in Uttar Pradesh and a combined crushing capacity of 136,000 tonnes per day. The company has a distillery capacity of 800 kilolitres per day and plans to increase ethanol production to 218 million litres annually.
However, Bajaj Hindusthan has faced financial challenges due to high debt levels and was declared a non-performing asset by lenders. The company is now working on a turnaround plan, and any positive policy changes or debt restructuring could significantly boost its stock price. This is a high-risk, high-reward investment suitable for investors with a higher risk appetite.
Factors to Consider Before Investing
Before you invest in ethanol stocks, keep these points in mind:
- Government Policies: Ethanol blending targets, sugar export rules, and ethanol pricing are set by the government and can significantly impact company profits.
- Agricultural Conditions: Ethanol production depends on sugarcane and grain crops, which are affected by weather and monsoons.
- Crude Oil Prices: When crude oil prices are high, ethanol becomes more attractive as a fuel alternative.
- Company Financials: Check the company’s revenue, profit, debt levels, and cash flow before investing.
- Production Capacity: Companies with higher ethanol production capacity and efficient operations are better positioned to benefit from rising demand.
The Bottom Line
Ethanol Stocks – A Great Way to Invest in the Green Energy Future of India. Government support, growing demand, and an evolving market make the stocks of companies in the biofuel industry a great way to invest in the green energy future of the country. However, the industry remains a politicised one and hence faces challenges related to agriculture and commodity prices. It is always essential to conduct your own research and consult a financial advisor before investing.
By making the right choices in terms of ethanol stocks and being updated on various trends and policies within the government, you can make informed investment decisions on India switching to cleaner energy.
Learn More:
- How to Start Investing in Mutual Funds in India – Step-by-Step Process for Beginners
- Difference Between Mutual Funds and Stocks – Which is Better for Beginners?
- Understanding NAV (Net Asset Value) in Mutual Funds – What It Means and Why It Matters
- Risks Involved in Mutual Fund Investments – Common Risks and How to Manage Them
Disclaimer: The information provided here is for general educational purposes and should not be taken as investment counsel. Investment in stocks is risky and the prices may fluctuate either way. Do your own research or consult a financial advisor prior to investing your capital.
