Best Ethanol Stocks in India for December 2025: EID Parry, Balrampur Chini Mills and More Based on 5Y CAGR

The demand for ethanol as a fuel in India is primarily driven by government blending mandates, the widespread availability of ethanol-blended fuels, and the compatibility of vehicles with such fuels. India has a vast vehicle population, including approximately 220 million two- and three-wheelers and 36 million four-wheelers.

With gasoline consumption projected at 698 crore litres in FY24, and assuming the planned blending targets are met, ethanol demand is expected to rise to around 1,016 crore litres by the end of the ethanol supply year FY26.

Since November 2024, in addition to B-heavy and C-heavy molasses, sugarcane juice and syrup have also been allowed for ethanol production. This diversification of raw material sources provides sugar mills with greater flexibility and is expected to enhance production capacity. The government’s initiative to broaden the range of permissible feedstocks aims to further strengthen the biofuel sector while supporting sustainable energy objectives. In this read, we will look at thetop ethanol stocks in India for December 2025, based on 5Y CAGR.

Best Ethanol Stocks for Dec 2025 – Based on 5 Year CAGR

Note: The best ethanol stocks list for Dec 2025 is sorted based on a 5-Year CAGR and market cap of at least ₹1,000 Crore as of Dec 5, 2025.

Overview of Top Ethanol Stocks in Dec 2025

EID Parry Limited

EID Parry Limited is involved in sugar, nutraceuticals, and ethanol production. It also has a significant presence in the Farm Inputs business. For the half year ended 30th September 2025, the consolidated revenue from operations stood at ₹20,348 crore, reflecting a robust growth of 27% over ₹16,077 crore recorded in the same period of the previous year.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to ₹2,244 crore, marking a 44% increase compared to ₹1,556 crore in the corresponding period last year.

The consolidated profit after tax and non-controlling interest reached ₹671 crore, up from ₹397 crore in the same period of the previous year, demonstrating strong operational performance and improved profitability.

Key Metrics:

•  Return on Capital Employed (ROCE): 16.6%
• Return on Equity (ROE): 9.54x

Balrampur Chini Mills Limited

Balrampur Chini Mills Limited (BCML) is one of the largest integrated sugar companies in India. The company’s management in recent earnings release stated that, “Despite a significant increase in sugarcane FRP and operational costs, the Government has not revised Ethanol prices under the Juice and B-heavy routes over the last two years.

We are hopeful that a timely upward revision in ethanol prices will be made to maintain the viability of sugar mills and their ability to make timely payments to farmers in the ongoing season 2025-26, i.e., a consecutive third year of rising cost burden. Likewise, revision in the Minimum Sale Price (MSP) of sugar will also be vital to sustain the sector’s financial health in a surplus year.

Key Metrics:

•  ROCE: 10.2%
• ROE: 11%

Also Read: Top Mutual Funds for December 2025 That Delivered Highest Returns in the Last 10 Years

Conclusion

India’s ethanol industry is poised for significant growth, driven by supportive government policies, expanding blending mandates, and the diversification of feedstock sources. With rising vehicle numbers and increasing fuel consumption, demand for ethanol is expected to grow steadily over the coming years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.