India’s transition toward renewable energy is accelerating, and biofuels have become a critical part of the country’s strategy to reduce dependence on fossil fuels. As transportation demand increases and sustainability goals become more important, biofuel manufacturing companies in India are playing an essential role in shaping the future of the nation’s energy ecosystem.

Biofuels are derived from renewable biological resources such as plant oils, agricultural residues, and organic waste. These fuels provide a cleaner alternative to traditional petroleum products while supporting waste recycling and rural economic development. This article explores the top biofuel companies in India.

Best Biofuel Stock in India: Key Demand Drivers

Several powerful catalysts are driving the growth of biofuel manufacturing companies in India:

• Government Biofuel Policies: The Indian government has implemented aggressive policies, including the Ethanol Blending Program (targeting 30% blending) and the National Policy on Biofuels, providing a massive runway for growth.
• Energy Security: India imports a significant portion of its crude oil. Biofuels help reduce this dependence by producing fuel domestically from renewable resources, saving crucial foreign exchange.
• Waste-to-Energy Initiatives: Programs encouraging the recycling of used cooking oils and agricultural residues are helping create a reliable feedstock supply while reducing environmental hazards.
• Industrial Decarbonization: Industries are increasingly exploring biofuels as part of their corporate sustainability and carbon reduction strategies to meet global climate commitments.

Top Biofuel Companies in India & Their Categories

Biofuel is primarily divided into four categories: (1) Bioethanol, (2) Biodiesel, (3) Biogas, and (4) Sustainable Aviation Fuel (SAF). Here is a breakdown of the production processes and the top-listed Biofuel companies dominating each category.

1. Best Bioethanol Companies in India

Bioethanol is produced through fermentation. Sugars extracted from crops (like sugarcane) or grains (like maize) are fermented using yeast to produce ethanol, which is then distilled and blended with petrol. This is currently the largest and most active biofuel segment in the listed space.

Balrampur Chini Mills

Balrampur Chini Mills (BCML), India’s second-largest integrated sugar and ethanol producer, is further consolidating its position in bioenergy and sustainability. The company operates 10 advanced sugar factories strategically located across the core agricultural belts of Uttar Pradesh, commanding a massive aggregate sugarcane crushing capacity of 80,000 TCD.

On the ethanol front, BCML maintains a dominant aggregate distillation capacity of 1,050 KLPD across its highly efficient, co-located manufacturing units. Backed by stable, long-term supply contracts with public sector Oil Marketing Companies (OMCs) that secure predictable revenue streams.

The company has an active saleable co-generation capacity of 175.7 MW to ensure efficient, low-carbon, year-round asset utilization. To permanently future-proof its portfolio, BCML has aggressively diversified into green biochemistry by investing over INR 927 crore (as of July 2025) to construct India’s first industrial-scale biopolymer facility at its Kumbhi unit, engineered to deliver 250 TPD (80,000 TPA) of eco-friendly Poly Lactic Acid (PLA) plastic alternatives.

Shree Renuka Sugars

Shree Renuka Sugars, a Wilmar company (with a 62.48% controlling stake), is one of the largest ethanol manufacturing companies in India. The company operates eight sugar mills (including subsidiaries) and two of India’s largest port-based refineries at Kandla and Haldia, making it a major player in both domestic and international sugar markets.

On the ethanol front, Renuka has expanded its aggregate installed distillation capacity to 1,400 KLPD, with distilleries located strategically at Munoli, Athani, and Havalga. The company produced 159 million litres of ethanol, of which 94% was premium grade, mainly supplied to public sector Oil Marketing Companies (OMCs) under secure Long-Term Offtake Agreements (LTOAs). This high-yielding bioenergy segment generated INR 1,009.5 crore of revenue, marking a 17% year-on-year growth and a 12.7% expansion in volumes while sustaining capacity utilization above 100%.

The company’s multi-feedstock flexibility – using sugarcane juice, B-heavy molasses, C-heavy molasses and maize – ensures year-round operations. Its total integrated green co-generation capacity stands scaled at 276 MW, generating over 475 million kWh of renewable power, of which 148 million kWh was exported directly to the grid to strengthen the nation’s clean energy transition.

Triveni Engineering & Industries

Triveni Engineering & Industries (TEIL) is one of India’s largest integrated sugar and bioenergy conglomerates, currently consolidating its operations through the amalgamation of its subsidiary, Sir Shadi Lal Enterprises Limited (SSEL). The company operates eight advanced sugar units across Uttar Pradesh with a massive aggregate crushing capacity of 70,500 TPD, strongly anchored by global sustainability and food safety benchmarks like Bon Sucro and FSSC 22000.

TEIL commands a scaled distillation footprint of 860 KLPD across its automated facilities in Muzaffarnagar, Sabitgarh, Rani Nangal, and Milak Narayanpur. Backed by sophisticated multi-feedstock flexibility—processing sugarcane juice, syrup, molasses, and grains like maize—the company recorded consolidated alcohol sales of 169 million liters and a stellar segment PBIT of ₹81.9 crore for the nine months ended December 31, 2025 (9M FY26), ensuring highly optimized, year-round capacity utilization.

Read Also: Top 10 Ethanol Manufacturing Companies in India

2. Best Biodiesel Companies in India

Biodiesel is produced through transesterification, where vegetable oils, animal fats, or Used Cooking Oil (UCO) react with alcohol in the presence of a catalyst. Pure-play biodiesel stocks are rare but highly promising.

Kotyark Industries

Kotyark Industries operates as a highly focused, pure-play biodiesel manufacturing company that recently migrated from the SME platform to the Main Board in March 2026. The company has built its business model entirely around sustainability, specialising in the conversion of Used Cooking Oil (UCO), non-edible oils, and animal fats into commercial-grade biodiesel. Operating from Gujarat, Kotyark utilises advanced transesterification processes to deliver eco-friendly fuel alternatives. Driven by recent strategic acquisitions and expansions, the company has scaled its consolidated production capacity to a massive ~500 KL per day, cementing its position as a market leader. The company actively participates in government-backed waste-to-wealth initiatives like the RUCO (Repurpose Used Cooking Oil) program and supplies directly to major Oil Marketing Companies (OMCs).

Rajputana Biodiesel

Rajputana Biodiesel is a rapidly growing player in the renewable energy sector, having established a strong presence on the NSE SME platform following its successful debut in late 2024. Originally based out of its multi-feedstock Phulera (Rajasthan) facility, the company is now aggressively expanding its footprint, including an 80 KLPD capacity enhancement in Meerut via its subsidiary. Rajputana specializes in producing high-grade biodiesel and its lucrative byproduct, glycerin, using raw materials like used cooking oil and animal fats. Crucially, the company is future-proofing its green portfolio; it recently secured approvals to set up two Compressed Bio-Gas (CBG) units in Rajasthan and has successfully attained international VERRA carbon credit certification. Their modern plants are designed for high operational efficiency and minimal environmental impact.

3. Top Biogas Companies in India

Biogas plants use anaerobic digestion—a biological process where microorganisms break down organic waste in oxygen-free conditions to produce methane-rich gas, often purified into Compressed Biogas (CBG).

Reliance Industries (RIL)

Reliance Industries (RIL), traditionally an oil and petrochemicals behemoth, is aggressively pivoting to lead India’s green energy revolution. Within the biofuel sector, RIL is making massive investments to build a nationwide network of Compressed Biogas (CBG) plants. Accelerating its green transition, the company has officially upgraded its target to establish 500 large-scale CBG facilities by 2030—with 55 plants already rolling out in Phase 1. These plants will process millions of tons of agricultural waste and organic matter via anaerobic digestion, directly addressing the critical issue of stubble burning. RIL is actively integrating this renewable gas into its Jio-bp (RBML) retail network, a strategy that is already yielding results with the company reporting a massive 65% year-on-year volume growth in CBG and CNG sales in Q4 FY26.

Thermax

Thermax is leveraging its execution Moat to transition from a pure-play engineering partner into an active operational force in biofuel manufacturing companies in India. While traditionally recognised as a premier technology and EPC provider of advanced biomass boilers, the company—through its subsidiary TBSPL—has rapidly scaled direct fuel production capabilities. According to its full-year FY26 financial results, Thermax has officially completed and commissioned its entire network of 14 greenfield Compressed Biogas (CBG) facilities, notably including the Reliance Akola and Nanded plants. This network expansion drove their cumulative CBG production momentum to 19,400+ tonnes for FY26 (with ~8,000 tonnes delivered in Q4 alone).

4. Sustainable Aviation Fuel Companies in India

Sustainable Aviation Fuel (SAF) is an emerging biofuel category designed specifically to decarbonize the aviation sector without requiring modifications to existing aircraft engines.

Praj Industries

Praj Industries is the technological backbone of biofuel companies in India. The company commands a 10% share of the global ethanol production (excluding China). Operating globally across 100+ countries and backed by a robust R&D portfolio of over 400 patents, Praj provides the proprietary engineering, plant design, and advanced process technologies required to produce 1G and 2G ethanol, Compressed Biogas (CBG), and Sustainable Aviation Fuel (SAF). Praj has formed global alliances with players like Gevo, Inc. and Axens to deliver SAF through the ASTM-approved Alcohol-to-Jet (ATJ) pathway, a technology currently in its final leg of optimisation for commercial offering.

Indian Oil Corporation (IOCL)

Indian Oil Corporation (IOCL) is spearheading the commercialisation of Sustainable Aviation Fuel (SAF) in India. While traditionally a fossil-fuel giant—having reported its highest-ever annual sales volume of 105.1 MMT and crude throughput of 75.5 MMT in FY26—IOCL is aggressively future-proofing its business. A centerpiece of this transition is the establishment of India’s first commercial-scale SAF plant at its Panipat refinery. This green initiative coincides with a massive INR 38,231 crore capacity expansion at Panipat (scaling from 15 MMTPA to 25 MMTPA), which is already ~93% complete and set for progressive commissioning starting June 2026. Leveraging advanced technologies through strategic partnerships—including collaborations with LanzaJet and Praj Industries—IOCL aims to convert ethanol and agricultural waste into aviation-grade green fuel.

Conclusion

Biofuel manufacturing companies in India represent a critical component of the nation’s renewable energy landscape. By converting biological resources and waste materials into usable fuels, these companies contribute to energy security, environmental sustainability, and rural economic development.

As industries and governments continue to prioritize cleaner energy solutions, biofuel manufacturers—whether in ethanol, biodiesel, biogas, or SAF—will play an increasingly important role in meeting transportation and industrial fuel demand. For investors, understanding this evolving ecosystem is essential to navigating future energy markets and participating in India’s transition toward a sustainable energy future.

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.