Shares of Bajaj Hindusthan Sugar Ltd climbed 8.71% on Tuesday, September 2, to ₹22.09 on the NSE, compared to the previous close of ₹20.32. The stock touched a high of ₹22.20 in early trade, backed by heavy volumes of 4.57 million.
Why are Bajaj Hindusthan Sugar shares up today?
The rally came after the Indian government, in a notification issued on Monday, allowed sugar mills and distilleries to produce ethanol from sugarcane juice, syrup, and all types of molasses without any restrictions on volumes in the 2025/26 supply year, which begins on November 1, 2025.
Earlier, production had been capped due to lower sugarcane availability. With sugarcane supplies expected to rise following two consecutive good monsoon seasons, the move is seen as a strong boost for sugar companies.
As India targets 20% ethanol blending in petrol by 2025/26, companies like Bajaj Hindusthan Sugar, which have significant ethanol production capacity, are expected to benefit directly, prompting strong investor interest in the stock today.
Stock snapshot – Bajaj Hindusthan Sugar Ltd (NSE)
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Current Price: ₹22.09 (+8.71%)
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Previous Close: ₹20.32
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Day Range: ₹21.33 – ₹22.20
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52-Week Range: ₹16.50 – ₹44.84
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Market Cap: ₹28.16B
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Avg Volume: 4.57M
Outlook
The ethanol policy change is expected to unlock higher revenues and strengthen cash flows for sugar mills. Bajaj Hindusthan Sugar, as one of the largest integrated sugar and ethanol producers in India, is seen as a major beneficiary of this government decision.
