5 Stocks Leading the Multi-Billion Dollar Sustainable Aviation Race to Watch

Synopsis: India is fast-tracking Sustainable Aviation Fuel adoption to meet 2027 global mandates, benefiting PSU giants private leaders with YoY net profit growth as high as 530 percent.

Sustainable Aviation Fuel or SAF is a drop-in biofuel produced from renewable feedstocks like used cooking oil, agricultural waste, and municipal solid waste. Chemically similar to conventional jet fuel, it reduces lifecycle carbon emissions by up to 80 percent, providing an immediate solution for decarbonizing the high emission aviation sector.

India is drafting a National SAF Policy to meet ICAO’s CORSIA mandates. Current targets include 1 percent SAF blending by 2027, 2 percent by 2028, and 5 percent by 2030 for international flights. Amendments focus on the Alcohol-to-Jet pathway and tax incentives to bridge the price gap with traditional jet fuel. Following are 5 stocks that could potentially benefit from these developments. Following are 5 stocks that could potentially benefit from these developments.

Indian Oil Corporation Ltd 

IOCL or Indian Oil Corporation Ltd is the pioneer of India’s SAF movement and is setting up an 10,000 tonne plant at its Panipat refinery. It has achieved the first ISCC CORSIA certification for SAF production in India and successfully conducted multiple commercial flight trials using blended fuel in collaboration with various domestic airlines.

In Q3FY26, Revenue was Rs 2,05,157 crore, which is a 6 percent YoY increase from Rs 1,94,014 crore in Q3FY25 and a 15 percent QoQ increase from Rs 1,78,628 crore in Q2FY26. Net Profit was Rs 13,502 crore, representing a 530 percent YoY jump from Rs 2,147 crore in Q3FY25 and a 65 percent QoQ growth from Rs 8,191 crore in Q2FY26.

Bharat Petroleum Corporation Ltd

Bharat Petroleum (BPCL) is aggressively pursuing its 2040 Net Zero goal under Project Aspire, backed by a ₹1.70 lakh crore investment over five years. The company is currently exploring co-processing technology at its Kochi refinery to produce bio-ATF and is building a robust supply chain for non-edible and used cooking oils. This strategic push into SAF production underscores BPCL’s commitment to scaling sustainable energy solutions across India.

In Q3FY26, Revenue was Rs 1,19,029 crore, showing a 5 percent YoY growth from Rs 1,13,166 crore in Q3FY25 and a 13 percent QoQ rise from Rs 1,04,946 crore in Q2FY26. Net Profit stood at Rs 7,188 crore, an 89 percent YoY increase from Rs 3,806 crore in Q3FY25 and a 16 percent QoQ increase from Rs 6,191 crore in Q2FY26.

Hindustan Petroleum Corporation Ltd 

HPCL or Hindustan Petroleum Corporation Ltd  is focusing on integrating bio-refineries into its traditional refining ecosystem. The company is actively working on second-generation ethanol plants and has signed agreements with international technology partners to deploy Alcohol-to-Jet pathways at its Vizag and Mumbai refineries to meet upcoming domestic mandates.

In Q3FY26, Revenue was Rs 1,15,153 crore, a 4 percent YoY growth from Rs 1,10,608 crore in Q3FY25 and a 14 percent QoQ increase from Rs 1,00,856 crore in Q2FY26. Net Profit was Rs 4,011 crore, marking a 58 percent YoY increase from Rs 2,544 crore in Q3FY25 and a 4 percent QoQ rise from Rs 3,859 crore in Q2FY26.

Praj Industries Ltd

Praj is a global leader in biofuel technology, specifically the Alcohol-to-Jet pathway. They have partnered with Gevo Inc. to provide technology for SAF production and are currently providing basic engineering design for several SAF projects in India, positioning them as the primary technology provider for the sector.

In Q3FY26, Revenue was Rs 841 crore, a 1 percent YoY decline from Rs 853 crore in Q3FY25 and flat QoQ compared to Rs 842 crore in Q2FY26. Net Profit reported a loss of Rs 12 crore, while the company had made a profit of Rs 41 crore in Q3FY25 and Rs 19 crore in Q2FY26.

TruAlt Bioenergy Ltd

This is India’s largest ethanol producer and a major private player in the SAF ecosystem. Through its joint venture with GAIL, it is setting up compressed biogas plants and is heavily investing in SAF production facilities to capitalize on the increasing demand for sustainable alternatives in the aviation industry.

In Q3FY26, Revenue was Rs 713 crore, a 72 percent YoY increase from Rs 415 crore in Q3FY25 and a 520 percent QoQ surge from Rs 115 crore in Q2FY26. Net Profit was Rs 69 crore, showing an 8 percent YoY decrease from Rs 75 crore in Q3FY25 and a significant recovery from a loss of Rs 38 crore in Q2FY26.

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