By FMTeam India’s ethanol industry has grown from a small fuel-additive market into an important part of the country’s energy strategy. Ethanol blending in petrol reached 20% during 2025–26, while projected procurement increased to more than 1,200 crore litres. India’s total ethanol production capacity also expanded to approximately 2,000 crore litres in 2026.
However, all ethanol stocks follow different business models. Sugar companies generally produce ethanol from sugarcane juice and molasses, while grain-based manufacturers use maize, broken rice and other feedstocks. Companies such as Praj Industries provide the technology and equipment required to build ethanol plants.
The following five companies were selected using their FY26 financial performance, ethanol capacity, feedstock flexibility, business diversification and long-term growth potential.
| Company | Ethanol Business Profile | FY26 Revenue | Main Growth Catalyst | Investment Profile |
| Balrampur Chini Mills | Sugarcane-based ethanol producer | ₹6,271.15 crore | 1,050 KLPD distillery platform | Established integrated producer |
| Triveni Engineering | Multi-feed ethanol and sugar producer | Around ₹6,291 crore | Grain-based ethanol expansion | Diversified growth opportunity |
| Dalmia Bharat Sugar | Sugarcane and grain-based ethanol | ₹3,618 crore | 950 KLPD distillery capacity | Integrated ethanol play |
| Globus Spirits | Grain ethanol, ENA and beverages | ₹2,708.1 crore | Flexible 334-million-litre capacity | Higher-growth manufacturing play |
| Praj Industries | Ethanol technology and plant engineering | ₹3,167.88 crore | Advanced biofuels and global orders | Equipment and technology exposure |
1. Balrampur Chini Mills
Best for: Large-scale and established sugarcane-based ethanol exposure
- FY26 revenue: ₹6,271.15 crore
- FY26 EBITDA: ₹741.28 crore
- Distillery capacity: 1,050 kilolitres per day
- Sugarcane crushing capacity: 80,000 tonnes per day
- Number of sugar factories: 10
Balrampur Chini Mills is one of India’s largest integrated sugar and ethanol producers. Its distilleries can process sugarcane juice, syrup, B-heavy molasses and C-heavy molasses depending on government policy and market conditions.
The company’s large crushing capacity provides access to substantial quantities of sugarcane-based feedstock. This integration reduces its dependence on purchasing raw materials from outside suppliers.
Key Growth Catalyst: Integrated Cane Utilisation
Balrampur can decide whether to produce sugar or divert part of its sugarcane towards ethanol. This flexibility can protect profitability when sugar inventories are high or when ethanol economics improve.
However, the company reported that FY26 distillery performance was affected because procurement prices for ethanol produced from sugarcane juice and B-heavy molasses had not been increased for three consecutive years.
Advantage: Large operating scale, established distillery infrastructure and access to captive sugarcane feedstock.
Limitation: Profitability remains sensitive to government-determined sugarcane and ethanol prices.
2. Triveni Engineering and Industries
Best for: Multi-feed ethanol production and wider business diversification
- FY26 consolidated revenue: Around ₹6,291 crore
- Alcohol production: 2,36,510 kilolitres
- Alcohol sales: 2,13,453 kilolitres
- Operational distillery capacity: 860 kilolitres per day
- Ethanol share of alcohol sales: Approximately 92%
Triveni Engineering is one of India’s largest integrated sugar and ethanol manufacturers. It operates eight sugar plants and five distillery units across four locations.
Its distillery portfolio includes both molasses-based and grain-based facilities. This multi-feed approach allows Triveni to use maize, grain or sugar-industry feedstocks based on availability and profitability.
Key Growth Catalyst: Grain-Based Production
Around 56% of Triveni’s FY26 ethanol sales were produced from grain, compared with 51% in the previous year. Grain flexibility is important because the availability of sugarcane juice for ethanol can change with government policy and sugar-production requirements.
The distillery segment achieved record production during FY26 and reported a significant improvement in profitability.
Advantage: Feedstock flexibility and engineering businesses reduce dependence on sugar prices alone.
Limitation: Grain costs, ethanol procurement prices and changing government allocations can affect margins.
3. Dalmia Bharat Sugar and Industries
Best for: Balanced exposure to sugarcane and grain-based ethanol
- FY26 revenue: ₹3,618 crore
- FY26 profit after tax: ₹238 crore
- Distillery capacity: 950 kilolitres per day
- FY26 distillery sales:7 crore litres
- Distillery revenue: ₹1,214 crore
Dalmia Bharat Sugar operates integrated sugar, ethanol and cogeneration facilities. Its distillery business can use sugar-industry feedstocks as well as grain, giving it greater production flexibility.
During FY26, distillery sales volume increased to 18.7 crore litres. Distillery segment EBIT rose by 40% to ₹97 crore, even though segment revenue increased by only 1%.
Key Growth Catalyst: Expanded Grain Capacity
The company commenced commercial operations at an additional grain-based unit in December 2025. This increased total distillery capacity from 850 KLPD to 950 KLPD and expanded grain-based capacity from 250 KLPD to 350 KLPD.
Advantage: Large distillery capacity and multiple feedstocks provide better protection against policy changes.
Limitation: Higher sugarcane and grain costs can reduce the benefit of stronger ethanol volumes.
4. Globus Spirits
Best for: Flexible grain-based manufacturing and ethanol capacity
- FY26 revenue from operations: ₹2,708.1 crore
- FY26 EBITDA: ₹272.8 crore
- FY26 profit after tax: ₹94.9 crore
- Distillation capacity: Approximately 334 million litres annually
- Number of distilleries: Six
Globus Spirits operates flexible distilleries across northern and eastern India. Its manufacturing business produces ethanol, extra neutral alcohol, animal feed, corn oil and spirits for captive and external customers.
The company can shift production between ethanol and extra neutral alcohol depending on selling prices, demand and state regulations. It can also process maize, broken rice and surplus rice supplied by the Food Corporation of India.
Key Growth Catalyst: Flexible Manufacturing Platform
Globus completed its Uttar Pradesh distillery expansion during FY26. Its manufacturing segment recorded revenue of ₹1,644 crore and an EBITDA contribution of ₹123.8 crore.
The company achieved approximately 80% capacity utilisation during FY26. Profitability improved as manufacturing EBITDA per litre increased from ₹2 in FY25 to ₹6.2 in FY26.
Advantage: Feedstock and product flexibility allow the company to shift towards the most profitable market.
Limitation: Globus is also an alcoholic-beverage company, and ethanol does not represent its entire business.
5. Praj Industries
Best for: Technology and equipment exposure to the ethanol industry
- FY26 consolidated revenue: ₹3,167.88 crore
- FY26 profit after tax: ₹23.85 crore
- Closing order backlog: ₹4,305 crore
- Customer references: More than 1,000 plants
- Global presence: More than 100 countries
Praj Industries does not produce ethanol for direct sale. It designs and supplies technologies, equipment and engineering services used to construct biofuel plants.
Its BioMobility platform covers conventional ethanol, compressed biogas, sustainable aviation fuel and other renewable transportation fuels.
Key Growth Catalyst: Advanced Biofuels
India’s existing ethanol capacity has reduced demand for new conventional greenfield plants. Praj reported that domestic first-generation ethanol projects faced overcapacity during FY26.
However, the company is expanding into ethanol-to-sustainable-aviation-fuel plants, international ethanol markets and efficiency-improvement solutions for existing distilleries. Its FY26 order backlog remained above ₹4,300 crore despite weaker annual profitability.
Advantage: Praj can benefit from new ethanol and advanced-biofuel projects without depending directly on ethanol selling prices.
Limitation: Project delays and lower investment in new domestic ethanol plants caused a sharp fall in FY26 profit.
Key Risks for Investors
Ethanol stocks face several important risks:
- Government pricing: Oil-marketing companies purchase ethanol at prices influenced by government policy.
- Feedstock costs: Sugarcane, maize and broken-rice prices can reduce production margins.
- Policy changes: Restrictions on sugarcane juice or grain use may affect plant utilisation.
- Overcapacity: India’s production capacity may temporarily exceed the requirement for E20 blending.
- Water availability: Distilleries require reliable water supplies and environmental approvals.
- Diversified businesses: Many ethanol stocks also depend on sugar, alcohol, engineering or consumer products.
Balrampur Chini offers established sugarcane-based production, while Triveni provides stronger multi-feed flexibility. Dalmia Bharat Sugar has a balanced integrated model, and Globus Spirits provides direct grain-distillery exposure. Praj Industries offers a different opportunity through ethanol technology and equipment.
Investors should compare ethanol capacity, utilisation, feedstock mix, debt, margins and valuation before investing. This article is for informational purposes and should not be treated as investment advice.