Sugar stocks surge: Balrampur Chini, Triveni Engg soar up to 8%; here's why

Triveni Engineering & Industries surged 8 per cent to ₹401, while Balrampur Chini Mills soared 7 per cent to ₹512.10 on the BSE in Wednesday's intra-day deals.

Balrampur Chini, Triveni Engineering share price today

Shares of sugar companies Balrampur Chini Mills and Triveni Engineering & Industries were in focus and rallied up to 8 per cent on the BSE in Wednesday’s intra-day trade. 

Triveni Engineering & Industries surged 8 per cent to ₹401, while Balrampur Chini Mills soared 7 per cent to ₹512.10 in intra-day deals. In comparison, the BSE Sensex was up 2 per cent at 75,546 at 01:00 PM. 

The market price of Triveni Engineering had hit a 52-week high of ₹468.20 on May 28, 2025 and Balrampur Chini Mills (BCML) ₹627 on July 16, 2025.  CATCH STOCK MARKET UPDATES TODAY LIVE

 

Why are sugar stocks in focus?

According to a Times of India report, the petroleum sector has urged industry stakeholders to explore ethanol as a clean cooking fuel for households, as part of broader efforts to reduce India’s dependence on imported LPG and expand the biofuel ecosystem. 

Meanwhile, according to reports, international sugar prices were trading higher due to a surge in crude oil, which has boosted ethanol prices. 

According to Crisil Ratings, the business risk profile of BCML remains strong, driven by integrated operations and the company’s presence across sugar and distillery segments.  BCML may not be materially impacted by industry downcycles, given its superior operating efficiency, increasing contribution of the distillery segment, and the integrated nature of operations. 

BCML’s revenue has grown by 19 per cent on-year for the first nine months of the fiscal 2026, wherein the sugar segment recorded 13 per cent growth, backed by better realisations. Distillery revenue grew by around 36 per cent, driven by healthy rise in sales volume, once the government restriction was lifted on use of sugar for ethanol manufacturing.  

The operating margin improved to 9.8 per cent for the first nine months of fiscal 2026, from 8.6 per cent in the corresponding period of the previous fiscal, led by better realisations in the sugar segment and higher volume in the distillery segment.  

With healthy profitability likely to sustain in the fourth quarter of fiscal 2026, given the seasonal nature of the business, the operating margin is expected to remain steady at 13.0-13.5 per cent in fiscal 2026 (13.5 per cent in fiscal 2025).  READ | Manappuram Finance jumps 6% on Bain Capital's 26% stake buy-out plan 

Ethanol prices are a function of sugarcane prices and cost of sugar production; thus, there is little chance of ethanol prices being lowered. The government of India advanced the 20 per cent ethanol blending target (with gasoline) to 2026 from 2030. That said, revenue from the ethanol segment witnessed healthy growth in sales volume, following removal of the ban on use of sugar for manufacture of ethanol, the rating agency said. 

However, despite increase in cane prices seen over the last couple of years, and rising operating cost, ethanol prices under the B-heavy and juice routes have not been revised for three years, and this exerts pressure on the profitability of distillery segment. As the sugar industry is highly regulated, any change in stance and continuation of government support to the sugar sector (including distilleries and ethanol pricing) will remain key monitorables, it added. 

Despite a 16.4 per cent increase in FRP and rising operating costs, ethanol prices under the B-heavy and juice routes have not been revised for the past three years. This is extremely disappointing and surprising, particularly since the requested revision would have had only a marginal—indeed sub-marginal—impact on OMCs, BCML said in the Q3 earnings conference call. 

Even if passed on to consumers, the effect would have been limited to approximately ₹0.10 to ₹0.20 per litre. For a consumer paying ₹100 per litre of petrol, this impact would have been negligible, the company said.  ==========================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.