For sugar mills, higher ethanol realisations can significantly improve margins, especially for companies with substantial distillery capacities.
Sugar stocks rallied up to 13 per cent on Wednesday, defying a broader market slump, as rising crude oil prices fuelled optimism over improved ethanol profitability for sugar mills.
While benchmark indices shed 2 per cent during the session, select sugar counters witnessed strong buying interest.
Shares of Balrampur Chini Mills climbed 9 per cent to an intraday high of ₹500.20 on the BSE. Bajaj Hindusthan Sugar rallied 12 per cent to ₹17.47, and Shree Renuka Sugars gained 6 per cent to ₹25.94.
Avadh Sugar, Dalmia Bharat Sugar and Dhampur Sugar Mills also zoomed 13 per cent, 10 per cent and 8 per cent, respectively.
Crude surge lifts ethanol outlook
The rally comes amid the escalating tensions in the Middle East and higher crude oil prices. Stronger crude prices typically enhance the attractiveness of ethanol blending, as ethanol becomes a more viable alternative to conventional fossil fuels.
For sugar mills, higher ethanol realisations can significantly improve margins, especially for companies with substantial distillery capacities.
The sharp move in sugar stocks stood out against a weak broader market backdrop.
Published on March 4, 2026