The PG Group Flagship Company Share Price Falls 13% After LPG Allocation Cut From March 9 Amid Middle East Conflict

Shares of PG Electroplast declined sharply by up to 13 per cent on Monday, March 9, 2026, after the company disclosed a disruption in gas supply under its Gas Sale and Purchase Agreement. The stock has also faced sustained pressure over a longer period, falling 37 per cent in the last 12 months.

The decline in the stock followed a communication received by the company from its gas supplier regarding a shortage in gas availability. The reduced supply could potentially impact the company’s operations depending on how the situation develops.

According to the company’s regulatory filing, the shortage has been linked to maritime navigation restrictions affecting certain vessels. These restrictions have arisen due to the ongoing conflict in the Middle East, which has disrupted shipping routes and created challenges across the global gas supply chain. As a result, gas availability has tightened and suppliers have begun restricting supply under existing agreements.

Due to the constrained supply situation, the allocation of LPG to PG Electroplast under its contract has been reduced with effect from March 9, 2026. The company stated that the reduced allocation may affect its operations if the situation persists.

PG Electroplast also said it is currently evaluating the situation to determine whether any supply curtailment may need to be passed on to its downstream customers.

To address the challenge, the company has begun exploring alternative sources of gas to maintain production levels. It added that efforts are underway to secure additional supplies so that manufacturing activities can continue without major disruption. At present, the company is closely monitoring geopolitical developments and their impact on the energy supply chain.

However, the company clarified that the financial or operational impact of the supply disruption cannot be quantified at this stage.

Gas is an important input in the company’s manufacturing operations. PG Electroplast uses gas-assisted injection molding, a specialised process that helps produce high-quality plastic components used in products such as air conditioners, washing machines and automotive parts.

The company also uses gases during the charging process for room air conditioners, where refrigerants such as R-32 and R-410A are used to provide cooling.

Following the disclosure of the supply disruption, the stock witnessed selling pressure during Monday’s trading session. Although the share price attempted to recover from its Intraday lows earlier in the day, it declined again after the announcement. Overall, the share price of PG Electroplast dropped by as much as 13 per cent during the session, extending its weak performance over the past year.

Disclaimer: The article is for informational purposes only and not investment advice.