PG Electroplast shares crashed 14% to ₹525.25, hitting a five-week low and marking a significant escalation from the previous 13% decline. According to Live Mint, the stock opened at ₹599 compared to the previous close of ₹609 and continued to decline as the day progressed, reaching levels last seen in late January. The sharp sell-off occurred in tandem with the broader Indian stock market decline, reflecting investor concerns about the company's operational challenges.
The company informed investors through an exchange filing that it received communication from gas suppliers about a shortage of gas under the Gas Sales and Purchase Agreement. As reported by Live Mint, the supply constraints are attributed to maritime navigation restrictions in the Middle East region due to the ongoing US-Iran war, which has severely impacted gas supply scenarios. According to the company, certain vessels have been affected due to the ongoing war, resulting in the gas supply chain becoming 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 9, 2026," the company stated.
Despite the current challenges, PG Electroplast delivered strong financial results for Q3, reporting a 50% year-on-year jump in net profit to ₹60.3 crore while revenue rose 45.9% to ₹1,412 crore. As per Live Mint, EBITDA increased 37.4% to ₹117 crore, though margins narrowed to 8.3% from 8.8% a year ago. The company's room air conditioner business grew 80.5% during the quarter, while the washing machine segment recorded a 45.1% increase. However, the stock has experienced significant volatility, delivering a negative return of 41% in CY25 and losing another 8% in the current year.
PG Electroplast shares have remained highly volatile since reaching an all-time high of ₹1,054 apiece in January 2025, with today's sharp crash bringing the stock down by nearly 50% from that level. The company uses gas-assisted injection molding as a specialized process to manufacture high-quality plastic components for air conditioners, washing machines, and automotive parts, making it particularly vulnerable to gas supply constraints. As reported by Live Mint, the company is currently assessing the situation regarding any supply curtailment that may need to be imposed on its downstream customers while exploring alternative sources to ensure production remains unaffected.
