4 Best Ethanol Stocks in India to Watch Amid the Biofuel Boom

#2 Balrampur Chini Mills

Next on the list is Balrampur Chini Mills.

Balrampur Chini Mills Limited (BCML) is one of India's largest integrated sugar companies. Its allied businesses include ethanol production and power cogeneration.

The company manufactures ethanol using B-heavy molasses, C-heavy molasses, sugarcane syrup, and grain-based routes, giving it flexibility in feedstock utilisation.

As of FY26, Balrampur Chini Mills had a total ethanol production capacity of 1,050 KLPD, spread across five distilleries located at Balrampur, Babhnan, Mankapur, Gularia, and Maizapur.

In FY26, Balrampur Chini Mills strengthened its ethanol production capacity with a significant rise in output from B-heavy molasses and grain-based routes.

Ethanol production from the B-heavy route increased by 34.1% YoY to 9.66 crore litres, while grain-based ethanol production surged 174.5% YoY to 4.75 crore litres. Production from the syrup route remained largely stable at 8.44 crore litres, up 0.8% YoY.

However, ethanol production from the C-heavy molasses route declined 23% to 1.24 crore litres as the company shifted towards more efficient feedstock options.

Overall, the company's ethanol production mix continued to evolve, with a higher contribution from B-heavy molasses and grain-based ethanol.

Its revenue has grown at a CAGR of 10.4%, while profit has seen growth of 10.2% in the past 3 years.

Balrampur Chini Mills - Financial Snapshot (FY23-26)

For more details, see the BALRAMPUR CHINI company fact sheet and quarterly results.

#3 Praj Industries

Next on the list is Praj Industries.

Praj Industries is one of India's leading industrial biotechnology companies, known for its expertise in bioenergy, engineering, and sustainable solutions.

The company provides advanced technologies for ethanol production, including energy-efficient solutions that help lower the carbon intensity of corn-based ethanol by optimizing thermal integration and reducing overall energy consumption.

Praj is at the forefront of India's biofuel transition through its advanced second-generation (2G) ethanol technology. The company's Enfinity^TM platform powers the Indian Oil Corporation's 2G ethanol plant in Panipat, which converts agricultural residues into ethanol.

In January 2026, Praj achieved a major milestone by successfully demonstrating its Ethanol-to-Jet (EtJ) process using Axens' Jetanol^TM technology at its integrated Sustainable Aviation Fuel (SAF) demonstration plant at Praj Matrix, its R&D centre.

This made Praj the first company globally to offer a fully integrated Alcohol-to-Jet (AtJ) technology and engineering solution covering both ethanol and isobutanol pathways.

The technology enables the conversion of ethanol into ASTM D7566-compliant sustainable aviation fuel, supporting the global transition towards low-carbon aviation.

Its revenue has grown at a CAGR of 8.8%, while profit has seen growth of 13.4% in the past 3 years.

Praj Industries - Financial Snapshot (FY22-25)

For more details, see the PRAJ IND.LTD company fact sheet and quarterly results.

#4 Dalmia Bharat Sugar

Last on the list is Dalmia Bharat Sugar.

Dalmia Bharat Sugar and Industries Ltd is one of the leading sugar producers in Uttar Pradesh, operating three integrated plants with a total cane crushing capacity of 35,500 TCD and a sugar production capacity of 7 lakh MT per annum.

As per company website, the company has also strengthened its presence in the green fuel segment with an ethanol production capacity of 240 KLPD. It manufactures fuel-grade anhydrous ethanol used for blending with petrol, supplying it to oil marketing companies through annual tenders

The company's ethanol production is supported by a diversified feedstock mix, including B-heavy molasses, sugarcane juice, and grain, aligning with India's biofuel and ethanol blending initiatives.

Its revenue has grown at a CAGR of 7.5%, while profit has seen growth of 9.2% in the past 3 years.

Dalmia Bharat - Financial Snapshot (FY22-25)

For more details, see the DALMIA BHARAT SUG. company fact sheet and quarterly results.

Conclusion

With India moving towards higher ethanol blending targets and the introduction of E100 fuel regulations, the ethanol industry is set to witness strong long-term growth.

Companies with large distillery capacities, diversified feedstock capabilities, and advanced ethanol technologies are well-positioned in this transition.

However, investors should look beyond just ethanol capacity and focus on factors such as financial performance, expansion plans, technology leadership, and execution capabilities before making an investment decision.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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