India's air-conditioner industry faces a potential supply crunch as LPG availability tightens, with the government's recent decision to review gas allocation and prioritise household and essential sectors raising fuel scarcity risks for industrial users. According to JM Financial, AC makers that depend heavily on LPG and PNG for flame-brazing copper components face operational challenges, as there is no readily available alternative to this essential brazing method. Manufacturers typically rely on LPG/PNG flames to heat copper tubes and seal them using filler metal - a process essential for creating leak-proof joints that allow refrigerants to circulate. PG Electroplast, a major contract manufacturer, has already sounded an alarm, with gas suppliers indicating reduced delivery volumes due to maritime navigation restrictions linked to the Middle East conflict, and supply formally restricted effective March 9, 2026.
Air conditioner stocks experienced significant gains during Wednesday's trading session as the Indian Meteorological Department (IMD) issued severe heat warnings for multiple regions. According to reports from Upstox, IMD predicted that the heatwave trend in India is likely to continue till March 12, 2026, with temperatures expected to remain significantly above normal over several regions in the coming days. On March 10, IMD issued a 'severe heat warning' for several areas in Mumbai, Thane and Palghar, while the Raigad region was put under a yellow alert. These weather warnings came after temperatures in the regions touched 42.5 degrees earlier this week. As per the latest IMD forecast, western and central India may see temperatures crossing 38-40°C in some areas, with warm winds blowing from western India and dry weather raising temperatures above 35°C in many places.
Blue Star emerged as the top performer, jumping 5.09% to ₹1,984 during the early market session on Wednesday, compared to ₹1,894.90 at the previous trading close, according to Upstox data. As reported by Upstox, shares of Blue Star are trading 3.68% higher over the previous market close level as of 1:51 p.m. on March 11. The company has delivered exceptional long-term returns, providing more than 318% returns to investors over the last five years and over 157% returns in the last three years. However, the stock has lost 3.27% in one year but is trading 10.33% higher on a year-to-date basis.
Voltas shares rose 4.2% in the early market session to hit an intraday high of ₹1,509.80 on Wednesday, compared to the previous market close at ₹1,448.90, according to Upstox data. The stock was trading 1.47% higher at ₹1,470.20 as of 2:10 p.m. Voltas has delivered impressive returns of more than 38% over the last five years and over 64% returns in the last three years. LG Electronics shares rose 2.44% to hit the intraday high of ₹1,611.50, compared to ₹1,573 at the previous market close, with the stock trading 0.32% lower at ₹1,578 as of 2:14 p.m. On a year-to-date basis, LG Electronics shares were trading 6.32% higher in 2026.
According to a recent report from PTI, air conditioner manufacturers are implementing price increases of 5% to 15% to offset rising raw material costs and supply chain expenses. As reported by Upstox, the price hikes are set to roll out between February to April, which also marks the peak summer season and serves as peak demand for AC sales. Leading AC makers have announced price increases across their models, passing on input costs to customers for raw materials like copper. This development comes as investors focus on potential price increases due to the early signs of a raging summer season, with heatwaves often raising power consumption by nearly 20% due to air conditioning and cooling systems.
Havells India shares jumped 3.43% to ₹1,404.60 intraday high level, compared to ₹1,358 at the previous trading close, according to Upstox data. The company's stock was trading 0.66% higher at ₹1,367 as of 2:17 p.m. Shares of Havells India have delivered more than 22% returns in the last five years and over 12% gains in the last three years. PG Electroplast shares surged 3.7% to hit the intraday high of ₹564.40, compared to ₹544.10 at the previous market session, with the stock trading 1.53% higher at ₹552.45 as of 2:21 p.m. However, PG Electroplast has lost 38% in one year and is trading 4.66% lower on a year-to-date basis despite delivering exceptional long-term returns of 1,180% over the last five years.
