Why Shree Renuka Sugar Share Price is Rising

According to the Ministry of Consumer Affairs, India is the world's second-largest exporter of sugar. It's an important industry contributing to the nation's growth.

Recently, the Indian sugar industry has shifted towards ethanol production, becoming a contributor to the country's clean energy goals.

There are many listed sugar stocks. But today, all eyes are on one particular sugar stock that is lighting up the market.

Shree Renuka Sugars, one of India's leading sugar manufacturers, has seen its share price jump 14%, sparking curiosity about the factors driving this surge.

What's the reason?

2 Reasons Why Shree Renuka Sugar Share Price is Rising

#1 Ethanol Production Policy Update

The share price of Shree Renuka Sugars jumped 14% today after the government allowed Indian sugar mills and distilleries to produce ethanol without any limits in FY26 marketing year, which starts from 1 November 2025.

The government has lifted restrictions on producing ethanol from sugarcane juice, sugar syrup, and B-heavy molasses for the 2025-26 sugar season.

The government had limited production this year due to a shortage of sugarcane. So, this move is a big relief for the sugar industry.

Sugar mills can now use B-heavy molasses stock, helping reach the goal of blending 20% ethanol in gasoline. India aims to blend 20% ethanol with gasoline in FY26.

The authorities will regularly review sugar diversion to ethanol production with the petroleum ministry to ensure sufficient sugar supply in the domestic market.

Sugarcane supplies are expected to increase in the new season due to good monsoon rains for two years, which helped farmers expand sugarcane cultivation.

#2 Mutual Fund Buying

Also, the share price can be driven up by mutual funds increasing their stakes in the company.

The stock experienced an upward moment in the June quarter 2025 as mutual funds increased their stake by a small amount from 0.16% in March 2025 to 0.17% in June 2025.

What Next?

Moving forward, Shree Renuka Sugars is working on expanding strategically and innovating to boost its market presence and achieve long-term success.

The company plans to increase its bagasse-based power generation capacity to tap into the rising demand for renewable energy.

It's also looking into bioenergy and waste-to-energy projects to boost sustainability.

Shree Renuka Sugars is investing in new systems and processes to tackle future challenges. By keeping an eye on market trends, the company aims to create a long-term plan that seizes opportunities and reduces risks, ensuring sustainable growth.

Overall, Shree Renuka Sugars is positioning itself for growth in the industry by scaling up production capacities in both sugar and ethanol.

How Shree Renuka Sugars Shares Have Performed Recently

In the past five trading sessions, shares of Shree Renuka Sugars surged about 11%. The price is up about 21% over the past six months.

However, the shares are down about 33.5% over the past one year.

The stock touched its 52-week high of Rs 56.48 on 1 October 2024 and a 52-week low of Rs 25.27 on 7 April 2025.

About Shree Renuka Sugars

Shree Renuka Sugars is a leading Indian agri-business and bio-energy company primarily engaged in sugar production, ethanol and ethyl alcohol manufacturing, and power generation.

Founded in 1995 and headquartered in Belagavi, Karnataka, it operates 11 mills across India and Brazil, with integrated ethanol and power co-generation capacities, reflecting its diversified operations within sugar milling, refining, distilling, co-generation, trading, and related activities.

To know more, check Shree Renuka's fact sheet and latest quarterly results.

You can also compare Shree Renuka Sugars with its peers on our website.

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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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