PG Electroplast shares fall 10% in 2 days amid gas supply shortage concerns

PG Electroplast shares fall 10% in 2 days amid gas supply shortage concerns

PG Electroplast Ltd shares declined for the second straight session on Friday amid concerns of a squeeze in its liquefied petroleum gas (LPG) supply chain due to the West Asia conflict.

At 11:06 am, shares of PG Electroplast were trading 4.11% lower at Rs 510.45 apiece on the BSE. The stock took a sharp hit in early trade, falling as much as 7.76% to touch a day’s low of Rs 491, down from its previous close of Rs 532.35 per share. 

Overall, the counter has slipped over 10% in the last two sessions.

On the day the company informed about the supply shortage, the stock plunged over 14% to settle at Rs 522.45 on the BSE. According to a March 9 regulatory filing, PG Electroplast gas suppliers alerted the company to a shortfall under their gas sale and purchase agreement. 

The company noted that the disruption stems from global geopolitical tensions, specifically pointing to constraints faced by shipping vessels due to "maritime navigation restrictions in light of the recent ongoing war in the Middle East region". 

While the company said that "the potential impact of the ongoing shortage situation cannot be quantified" at this stage, it is actively exploring alternative supply sources to keep unaffected production lines running smoothly.

In its latest investor presentation, PG Electroplast had reported a strong nine-month period for FY 26, with consolidated revenues jumping 20.7% to Rs 3,571.35 crores. The company's core product business has been a major growth engine, contributing 73% of total revenues during this time frame. The management had previously guided for full-year FY26 consolidated sales in the range of Rs 5,700 to 5,800 crore. “which is a growth of 17-19% over FY25 sales of Rs 4,870 crore,” the company said earlier.