PGEL shares tumble 12% amid LPG supply crisis due to West Asia conflict

Shares of PG Electroplast Ltd (PGEL) fell sharply in Monday's trading session, sliding 12.08 per cent to hit a low of Rs 534.55. The decline comes after the company informed bourses that its suppliers communicated about a gas shortage due to the ongoing war in West Asia.

In an exchange filing, the company said, "The said communication is due to the constraints faced by certain vessels arising from maritime navigation restrictions in light of the recent ongoing war in the Middle East region, impacting the gas supply scenario, the availability of gas has become severely constrained."

"Consequently, due to supply restrictions imposed by the suppliers, the allocation of LPG quantities to PGEL under the said contract has been constrained with effect from March 09, 2026. 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," PGEL added.

"At this stage, the potential impact of the ongoing shortage situation cannot be quantified. The Company is closely monitoring developments and will continue to keep the stock exchanges informed of any material updates," it further stated.

PGEL uses gas-assisted injection molding as a specialised process to manufacture high-quality plastic components used in air conditioners, washing machines and automotive parts. The company is also involved in gas charging during the manufacturing of room air conditioners, where gases such as R-32 or R-410A are used to enable cooling.

Meanwhile, Indian equity benchmarks were trading sharply lower on Monday, dragged by broad-based weakness across sectors amid the ongoing conflict in West Asia. Sectoral performance remained negative, with declines seen across segments. Banking, financials, automobile and energy stocks emerged as the worst performers, while the broader market also mirrored the weakness in the benchmarks.