PG Electroplast rises 9% after LPG crisis eases; AC production on track

PG Electroplast share price surged up to 9 per cent on Tuesday after the company said its AC production has normalised despite LPG shortage. Analysts see limited Q4 impact; maintain positive outlook.

PG Electroplast share price jumped nearly 9 per cent on the BSE on Tuesday after the company said the production of air conditioners (Acs) has normalised at its plants despite LPG gas shortage.

 

Notably, PG Eletroplast shares soared 8.8 per cent intraday to hit a high of ₹546.8 per share on the BSE. By 11:04 AM, the stock had pared some gains to quote 4 per cent higher at ₹523.85 per share as against a 2 per cent jump in the BSE Sensex index. 

 

In a stock exchange filing this morning, PG Electroplast said the company has been able to identify and install alternative solution to LPG at its plants to ensure continued production/supplies to its customers. 

 

 

“Thus, the current Room AC production is almost normalised and the company has been able to

address the LPG challenges to large extent for the time being,” it said in a statement.

Why LPG shortage hit AC productions

Earlier, on March 9, the company informed the exchanges that its gas suppliers had restricted the allocation of LPG quantities to PGEL due to the constraints faced by certain vessels passing through the Gulf regions amid the ongoing Iran war, impacting the gas supply scenario. 

 

“PGEL is currently assessing the situation with respect to any supply curtailment that may need to be imposed on its downstream customers. Notwithstanding the above, PGEL is exploring alternative sources/supplies for unaffected production,” it had said back then.

 

Notably, LPG/PNG is primarily used as a process fuel for flame brazing of copper refrigerant tubing, which is a critical step in assembling the sealed refrigerant circuit connecting the compressor, condenser, evaporator and capillary lines in air conditioners.

 

Simply put, copper tubes carrying refrigerant are joined to other copper components such as the heat exchanger and compressor lines. To make these copper-to-copper joints, manufacturers heat the copper tube using a high temperature flame generated from LPG or natural gas (PNG/PNG) and add a filler metal that melts and seals the connection. 

 

Once cooled, it forms a strong, leak-proof copper joint, allowing refrigerant to circulate through the system without leakage.

 

Apart from PG Electroplast, Bosch, E-Pack Durables, and Blue Star had informed that about disruption in production. 

 

Channel checks by analysts revealed that companies located in Maharashtra witnessed a material reduction in supplies. PNG supplies, too, were cut by around 20 per cent with effect from March 9, 2026.   CHECK Stock Market LIVE Updates

AC sector outlook

According to analysts, industry players were holding inventories for 10-12 weeks. A crunch in LPG supply beyond two weeks from March 9 (when the cuts began), they said, could impact the season sales as it takes typically two-four weeks for products to reach retail touchpoints.

 

Consequently, they don’t expect companies to see a material impact of the LPG crunch in Q4FY26, while Q1FY27 performance would depend on a) the season’s performance, b) cost inflation, and c) availability.  

PG Electroplast share price outlook

 

Analysts at Nuvama Institutional Equities cut their FY26 and FY27 earnings estimates by 14 per cent and 1 per cent, respectively, for PGEL to reflect the weak Q4 and modest margin impact in FY27 due to substitute fuel. 

 

It, however, maintained ‘Buy’ rating with a revised March 2027 share price target of ₹780 (earlier ₹800).

 

Geojit Financial Services, meanwhile, has an ‘Accumulate’ rating on the stock with a target price of ₹686. 

 

The brokerage expects the management’s focus to diversify to other business verticals like refrigerator and compressor manufacturing to keep the long-term story intact. Besides, superior execution and margin expansion through cost controls and backward integration, it said, would aid profitability.

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