Shree Renuka Sugars share price climbs for second day after ethanol policy boost

Shares of Shree Renuka Sugars Limited witnessed an increase in its share price for the second day in a row. The sharp rally in the stock could be attributed to the fact that the government on Monday permitted sugar mills and distilleries to produce ethanol without any quantitative restrictions in the 2025-26 marketing year starting in November.

The Food Ministry on September 1 issued a notification lifting the 4 million tonne cap on sugar diversion for ethanol production that was in place for the 2024-25 Ethanol Supply Year (ESY).

The counter began the day at ₹32.70, up from the previous close of ₹32.44. The stock climbed further to touch an intraday high of ₹33.25. The company’s market capitalisation stands at ₹6,949.52 crore as on September 3.

Last seen at 11:28 AM, shares of Shree Renuka Sugars were trading 0.40% higher at ₹32.57 apiece on the National Stock Exchange (NSE).

Over the last five days, shares of Shree Renuka Sugars have soared 13.52%. Data show that in the past month, the scrip has jumped nearly 8.42%, 11% in the past six months.

On the other hand, the stock has declined by around 18.93% on a YTD basis.

A key point about Shree Renuka Sugars is that most of its shares are owned by public companies. The largest of them is Wilmar International, which holds 62%.

The recent increase in the stock can also be attributed to mutual funds raising their stake slightly, from 0.16% in March 2025 to 0.17% in June 2025.

The stock had touched its 52-week high of ₹56.50 on October 1, 2024 and its 52-week low of ₹24.71 on April 7, 2025.

In the bigger picture, India is the world’s second-largest sugar exporter, as per the Ministry of Consumer Affairs. The sugar industry is also shifting focus toward ethanol production, helping the country’s clean energy plans.

"Sugar mills and distilleries are allowed to produce ethanol from sugarcane juice/sugar syrup, B-heavy molasses as well as C-heavy molasses during ESY 2025-26 without any restrictions," the food ministry said in a notification.

It said the department, in consultation with the petroleum ministry, would periodically review the diversion of sugar to ethanol production in order to ensure a smooth supply of sweetener in the domestic market.

Shree Renuka Sugars Ltd reported consolidated revenue of ₹2,020.10 crore in Q1 FY2025-26, registering a year-on-year decline of 34.31% and a sequential fall of 26.61%. Expenses for the quarter were also lower, down 32.9% on a QoQ basis and 27.4% compared to the same period last year.

The company posted a net loss of ₹263 crore in the latest June quarter vs ₹165.5 crore a year back.