Sugar stocks were in focus during morning trade on September 2 after the government announced the removal of production limits on ethanol derived from sugarcane juice, sugar syrup, and molasses for the 2025-26 supply year.
Beginning November 1, mills and distilleries will be able to produce ethanol without quantitative restrictions, as confirmed by the Ministry of Consumer Affairs, Food & Public Distribution.
The Department of Food and Public Distribution (DFPD) will periodically review diversion levels to ensure steady domestic sugar availability. The move comes amid higher sugarcane supplies expected in the new season, supported by two consecutive years of ample monsoon rains and increased acreage under cultivation. Here are five stocks that were in focus during the session.
1. Balrampur Chini Mills Ltd
Balrampur Chini Mills Limited (BCML) is among India’s largest integrated sugar producers. Alongside sugar, its operations span distilleries and cogeneration of power. The company has expanded capacity through strategic projects and acquisitions, establishing itself as one of the most efficient players in the sector.
The company has a market cap of Rs. 11,644.72 crore. Its stock opened at Rs. 567.25 on September 2 against the previous close of Rs. 541.75 and touched an intraday high of Rs. 584.40, marking a gain of 7.86 percent from the previous close.
BCML has an aggregate cane crushing capacity of 80,000 tonnes crushed per day (TCD) and a distillery capacity of 1,050 kilolitres per day (KLPD). It operates 5 distillery units and 10 sugar units across its network.
2. Bajaj Hindusthan Sugar Ltd
Bajaj Hindusthan Sugar Limited (BHSL), incorporated in 1931 as The Hindustan Sugar Mills Limited, is engaged in the production of sugar, alcohol, ethanol, and power generation.
The company has a market cap of Rs. 2,843.40 crore. Its shares opened at Rs. 21.50 compared to the previous close of Rs. 20.32 and climbed to an intraday high of Rs. 23.09, reflecting a rise of 13.65 percent.
During the year, the company’s industrial alcohol and ethanol production stood at 1,07,757 KL, down from 1,78,121 KL in the previous year. Sales volumes were 1,20,410 KL compared to 1,52,719 KL previously.
No ethanol was produced from B-heavy molasses during the year, against 1,11,443 KL in the prior year. Sales from B-heavy molasses–based ethanol were 11,222 KL with an average realization of Rs. 60,574 per KL, compared to 1,06,175 KL at Rs. 60,668 per KL previously.
3. Shree Renuka Sugars Ltd
Shree Renuka Sugars, headquartered in Belagavi, Karnataka, is engaged in the production and refining of sugar, along with ethanol and ethyl alcohol manufacturing and power generation. Its flagship brand, Madhur, has a strong presence in both traditional and modern retail formats across the country.
The company has a market cap of Rs. 6,996.35 crore. Its stock opened at Rs. 30.26 on September 2 compared to the previous close of Rs. 28.78 and hit an intraday high of Rs. 33.50, recording a gain of 16.45 percent.
As of March 2025, the company has an ethanol production capacity of 1,250 KLPD and a crushing capacity of 37,500 TCD. Its raw sugar melting capacity stands at 5,500 tonnes per day. In FY25, it produced 159 million litres of ethanol, with 94 percent of the output being premium-grade.
4. Dhampur Sugar Mills Ltd
Dhampur Sugar Mills Limited is an integrated sugarcane processing enterprise engaged in sugar manufacturing, ethanol and chemical production, as well as power cogeneration. The company utilizes by-products such as bagasse and molasses across its distillery and co-generation businesses. Its operating segments include Sugar, Power, Ethanol, Chemicals, Potable Spirits, and Others.
The company has a market cap of Rs. 913.15 crore. Its stock opened at Rs. 133.15 compared to the previous close of Rs. 126 and surged to an intraday high of Rs. 143.75, reflecting a gain of 14.07 percent.
The company operates through two facilities. At its Dhampur plant, it has a sugar capacity of 15,000 TCD, a distillery capacity of 350 KLPD (C-heavy), and an ethyl acetate facility of 140 metric tonnes per day. At Rajpura, the sugar capacity stands at 9,000 TCD. In Q1FY26, ethanol contributed 22.1 percent of revenue, up 2 percent year-on-year, while sugar accounted for 61.1 percent.
5. Triveni Engineering and Industries Ltd
Triveni Engineering and Industries Ltd is a diversified conglomerate with core operations in sugar, ethanol, and engineering. Strategically located in the sugarcane-rich western and central belt of Uttar Pradesh, it is among the top three sugar manufacturers in India and the second-largest ethanol supplier in the country.
The company has a market cap of Rs. 7,966.79 crore. Its shares opened at Rs. 360 on September 2 versus a previous close of Rs. 350 and reached an intraday high of Rs. 368.80, representing a gain of 5.37 percent.
For the ethanol supply year 2024-25, the company contracted to supply 1,077 crore litres of ethanol. Its sugarcane crushing capacity stands at 70,500 tonnes per day, supported by an alcohol and distillery capacity of 960 KLPD.
