PG Electroplast Share Price Crashes 13% After LPG Supply Cut Amid Middle East Conflict

The sharp fall came after the company disclosed that it had received communication from its gas supplier regarding a shortage of gas supply, which is expected to affect operations.

Gas Shortage Triggered by Maritime Restrictions

According to the company’s regulatory filing, the shortage is linked to maritime navigation restrictions affecting certain vessels. These restrictions have emerged due to the ongoing war in the Middle East region, which has disrupted shipping routes and affected the broader gas supply chain.

As a result of these constraints, the availability of gas has become severely limited, leading suppliers to impose supply restrictions under the existing contract.

LPG Allocation Cut From March 9

Due to the restricted supply, the allocation of LPG quantities to PG Electroplast under the contract has been reduced with effect from March 9, 2026. The company noted that the curtailed allocation could affect operations depending on how the supply situation evolves.

PG Electroplast stated that it is currently assessing the situation to determine whether any supply curtailment needs to be imposed on its downstream customers.

Company Exploring Alternative Supply Sources

While the shortage poses a challenge, the company emphasized that it is actively exploring alternative gas sources and supplies to maintain production that may otherwise remain unaffected. At present, the firm is closely monitoring developments related to the geopolitical situation and its impact on energy supply.

However, the company clarified that the potential financial or operational impact of the shortage cannot yet be quantified.

Importance of Gas in Manufacturing Process

Gas plays a crucial role in the company’s production processes. PG Electroplast uses gas-assisted injection molding, a specialized manufacturing technique used to produce high-quality plastic components for products such as air conditioners, washing machines, and automotive parts.

The company is also involved in gas charging processes for room air conditioners, where refrigerant gases such as R-32 and R-410A are used to provide cooling.

PG Electroplast Share Price Declines After Supply Disruption Disclosure

The supply disruption announcement triggered selling pressure in the stock during Monday’s trading session. Although the stock attempted to recover from its intraday lows earlier in the session, it sold off again after the disclosure. The share price of PG Electroplast fell sharply by as much as 13%. Over a longer period, the stock has also been under pressure, declining 37% over the last 12 months.