PG Electroplast shares tumble 12% on gas supply shortage concerns

Shares of PG Electroplast Ltd. tumbled over 12 per cent on Monday after the company said it had received a communication from its gas supplier about a gas shortage amid supply constraints linked to tensions in West Asia. 

The company's stock fell as much as 13.3 per cent during the day to ₹527.7 per share, the biggest intraday fall since August 11 last year. The PG Electroplast stock pared losses to trade 10.4 per cent lower at ₹545.3 apiece, compared to a 2.34 per cent decline in Nifty 50 as of 12:47 PM.  

Shares of the company fell for the second straight session and currently trade at 3 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 5 per cent this year, compared to an 8.6 per cent advance in the benchmark Nifty 50. PG Electroplast has a total market capitalisation of ₹15,562.59 crore. 

 

PG Electroplast stock under pressure

PG Electroplast said it has received a communication from its gas supplier regarding a shortage of gas under the existing Gas Sale and Purchase Agreement, citing supply constraints linked to maritime navigation restrictions amid the ongoing conflict in West Asia. 

The company said certain vessels are facing operational constraints due to the geopolitical situation, which has severely affected the availability of gas supplies, it said in an exchange filing. As a result, the allocation of LPG quantities to the company under the contract has been curtailed with effect from March 9, 2026. 

PG Electroplast said it is assessing the situation to determine whether any supply curtailment may need to be imposed on its downstream customers. However, the company added that it is exploring alternative sources of supply to ensure that production remains unaffected. At present, the potential financial or operational impact of the shortage cannot be quantified, the company said.   READ | LNG supply fears hit gas stocks; GAIL, Petronet LNG, Gujarat Gas tumble 5%

PG Electroplast Q3 and outlook

The company reported strong revenue growth in the third quarter, exceeding estimates by about 8 per cent, though profit after tax came in slightly below expectations due to lower other income and higher finance costs, according to a note by JM Financial. The brokerage said operational performance during the quarter was broadly in line with estimates, with robust growth in the company’s key businesses. 

Revenue from the air-conditioner segment rose about 80 per cent year-on-year, while the washing machine business grew around 45 per cent year-on-year. Growth in the air-conditioner segment was driven by increased manufacturing ahead of the December 31, 2026 deadline for the older Bureau of Energy Efficiency norms, it said. 

However, JM Financial noted that channel inventory, including both brands and distributors, currently stands at about 5 million units, higher than normal levels. Going forward, price hikes and summer demand trends will remain key factors to watch.  

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