Eternal, Swiggy share prices plummet 5% as eateries face LPG crisis; what you need to know

Analysts at CLSA have cautioned that India’s energy supply chain could face disruptions due to the ongoing conflict involving Iran, with LPG supplies seen as the most vulnerable, followed by LNG.

The leading financial services firm noted that alternative supply support may only materialise by the end of April, raising the possibility of an acute LPG and gas shortage over the next three to four weeks.

Such a disruption could impact output in sectors such as fertilisers, petrochemicals, restaurants, glass, and ceramics that rely heavily on gas as a key input.

Impact on Swiggy, Eternal

Food-delivery companies such as Swiggy and Eternal are indirectly exposed because their business depends on restaurants staying operational.

If restaurants shut down temporarily due to LPG shortages, order volumes and restaurant availability on these platforms may decline, potentially affecting revenues.

How shares were faring on Thursday, March 12

Shares of Eternal were trading nearly 3.6% lower at ₹215.72 apiece on the NSE, while Swiggy was trading 2.76% lower at ₹276.75 on the NSE. In the opening deals, both stocks slipped by over 4.7%.

What FHRAI said on the LPG crisis

Hit hard by the shortage of commercial LPG cylinders, the hoteliers' body on Tuesday, March 10, said a large number of hotels and eateries in Mumbai will have to shut operations in the next two days if the situation is not resolved.

'Similar disruptions are also reported from Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana, and Andhra Pradesh,' Pradeep Shetty, vice president, Federation of Hotel and Restaurant Association of India (FHRAI), said.

Amid the West Asia crisis, the government has revised the priority order for allocating domestically produced natural gas, placing LPG production alongside CNG and piped cooking gas at the top. This has led to a supply crunch for hotels and restaurants,, which use market-priced commercial LPG.

The shortage of commercial LPG has become extremely serious over the past week, with intermittent disruptions escalating into a near-complete halt in supply in several regions since Monday, said Shetty, who is also the spokesperson for the Hotel and Restaurant Association (Western India) – HRAWI.

"We are already receiving reports of severe shortages from cities including Mumbai, Pune, Aurangabad,, and Nagpur, while similar disruptions are being reported in states such as Delhi, Karnataka, Telangana, and Andhra Pradesh," Shetty added.