PG Electroplast Shares Fall 13% After LPG Supply Disruption

Shares of PG Electroplast Ltd dropped sharply on Tuesday after the company informed stock exchanges about a disruption in LPG supply that could affect its operations. The stock fell around 13% during the trading session, touching an intraday low of ₹528 on the BSE Ltd.

The decline came after the company disclosed that its gas suppliers had notified it about a shortage in LPG supply under an existing Gas Sale and Purchase Agreement.

According to the regulatory filing, the shortage is linked to maritime navigation restrictions that are affecting vessels transporting gas. These restrictions have emerged due to the ongoing geopolitical conflict in the Middle East involving Iran, Israel, and the United States.

The conflict has disrupted key shipping routes used for transporting energy supplies across global markets. One of the most sensitive regions affected is the Strait of Hormuz, a vital channel through which a large portion of the world’s oil and gas shipments pass.

Due to these disruptions, LPG transportation has been affected, tightening supply in the market. As a result, suppliers have imposed restrictions on LPG deliveries, which has reduced the quantity allocated to PG Electroplast under its contract.

The company stated that the reduced allocation of LPG supply will be effective from March 9, 2026.

LPG plays a role in the company’s manufacturing operations, so any supply shortage could potentially affect production if the situation continues for an extended period.

However, the company said the exact financial or operational impact cannot be determined at this stage. It noted that the situation is still evolving and that it is closely monitoring developments.

To manage the situation, PG Electroplast said it is currently assessing the impact of the reduced gas supply. The company is also evaluating whether supply curtailment may be required for downstream customers and is exploring alternative sources of LPG supply to maintain smooth production.

Despite the current supply challenge, the company recently reported strong financial performance in its latest quarterly results.

For the third quarter, PG Electroplast reported a net profit of ₹60.3 crore, which represents a 50% increase compared to the same period last year. Revenue for the quarter rose 45.9% year-on-year to ₹1,412 crore.

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also grew 37.4% to ₹117 crore. However, EBITDA margin slightly declined to 8.3%, compared with 8.8% in the previous year.

The company’s wholly owned subsidiary, PG Technoplast Pvt Ltd, also reported strong performance during the quarter. The subsidiary generated revenue of ₹1,067 crore in Q3 FY26, indicating continued growth in the group’s manufacturing business.

The sharp fall in the stock reflects investor concerns that energy supply disruptions caused by geopolitical tensions could affect companies that rely on gas or petrochemical inputs in their operations.

For now, PG Electroplast has said it will continue monitoring the situation and will inform stock exchanges if there are any material developments regarding supply disruptions or operational impact.