LPG crisis India: India’s LPG crisis driven by the US–Iran conflict impacts multiple sectors (Image: AI/ET Now)
LPG crisis India: The ongoing LPG crisis in India, triggered by the US–Iran conflict, has not only impacted the general public but also created a cascading ripple effect across multiple sectors of the Indian equity market.
This disruption, driven by supply constraints and rising input costs, is now weighing on sectors such as hospitality, FMCG, paints, and industrials, thereby amplifying inflationary pressures and earnings uncertainty.
Among the major industries impacted, restaurants and QSRs emerge as the most affected, while fertiliser and select pipe companies appear relatively less impacted in terms of stock return performance.
Here’s sector wise breakdown:
| Company |
1M Return (%) |
YTD Return (%) |
| Jubilant |
-9.08 |
-13.87 |
| Devyani |
-18.15 |
-26.17 |
| Sapphire |
-22.01 |
-34.78 |
| Westlife |
-14.56 |
-18.16 |
Restaurants & QSRs were impacted due to reliance on commercial LPG cylinders for running kitchen operations, leading to elevated operating costs.
2. Food Delivery
| Company |
1M Return (%) |
YTD Return (%) |
| Swiggy |
-10.47 |
-8.36 |
| Zomato (Eternal Ltd) |
-12.79 |
-14.77 |
Food Delivery Platforms were impacted due to second-order effects, as restaurants faced constraints in catering to demand.
3. Glass Manufacturing
| Company |
1M Return (%) |
YTD Return (%) |
| Borosil |
-11.56 |
-15.49 |
Food Delivery Platforms were impacted due to second-order effects, as restaurants faced constraints in catering to demand.
4. Beverages
Beverage Companies were impacted due to their dependence on glass, which constitutes nearly 40 per cent of input costs in the alcoholic beverage industry.
5. FMCG
| Company |
1M Return (%) |
YTD Return (%) |
| Britannia |
4.70 |
-2.06 |
| HUL |
-7.60 |
-7.58 |
| Colgate |
-11.86 |
-7.22 |
FMCG companies were impacted due to the diversion of propane and butane, potentially leading to higher plastic and packaging costs.
6. Ceramics
| Company |
1M Return (%) |
YTD Return (%) |
| Somany Ceramics |
-4.73 |
-2.09 |
| Kajaria |
-5.48 |
-1.77 |
| Cera Sanitaryware |
-5.22 |
-5.62 |
Ceramic Manufacturers were impacted as gas forms 25–30 per cent of tile manufacturing costs, making margins sensitive to price increases.
7. Wood Panels And Laminates
| Company |
1M Return (%) |
YTD Return (%) |
| Century Plyboard |
-11.78 |
-18.35 |
| Greenlam Industries |
-12.47 |
-10.14 |
Wood Panel and laminate companies were impacted due to rising gas prices and increasing phenol costs, a key raw material.
8. Fertilisers
| Company |
1M Return (%) |
YTD Return (%) |
| FACT |
1.92 |
-9.59 |
| Navin Fluorine |
-0.41 |
7.21 |
| RCF |
-11.10 |
-17.81 |
| Chambal Fert |
-5.03 |
-9.11 |
Fertiliser companies were impacted as natural gas is the primary feedstock for urea production.
9. Chemicals
Chemical companies were impacted due to reliance on LPG derivatives like propane and butane as key raw materials.
10. Textiles
| Company |
1M Return (%) |
YTD Return (%) |
| Vardhman Textiles |
9.04 |
27.62 |
| Gokaldas |
-23.99 |
-18.41 |
| Arvind Fashions |
-14.82 |
-19.65 |
Textile companies were impacted due to gas usage in dyeing, processing, and steam generation.
| Company |
1M Return (%) |
YTD Return (%) |
| Astral |
1.81 |
16.12 |
| Prince Pipes |
-6.21 |
-6.44 |
| Finolex Industries |
-7.51 |
0.67 |
Pipe companies were impacted as higher crude prices led to increased PVC resin costs, thereby affecting margins.
The data indicate that the impact of the LPG crisis is most severe in sectors with direct and immediate dependence on LPG or gas as a core operating input, while relatively milder in sectors where the impact is indirect or partially pass-through in nature.
Restaurants & QSRs emerge as the most impacted sector, with consistently sharp declines across all players (especially on a YTD basis), reflecting their high dependence on commercial LPG for daily operations and limited ability to absorb or pass on costs. Additonally food delivery platforms have seen notable declines as well, though largely driven by second-order demand-side disruptions rather than direct cost exposure.
Among individual stocks, the sharpest declines have been observed in Sapphire Foods, Devyani International, and Gokaldas Exports, indicating heightened sensitivity to the ongoing LPG-driven cost pressures. Sapphire Foods has emerged as the worst performer with a decline of -22.01 per cent over the past month and -34.78 per cent on a year-to-date basis, followed by Devyani International, which has fallen -18.15 per cent in the last month and -26.17 per cent YTD.
Gokaldas Exports, while belonging to a different sector, has also witnessed significant pressure, declining -23.99 per cent over one month and -18.41 per cent YTD, highlighting that both direct and indirect exposure to gas-linked costs have materially impacted stock performance.
Readers should note that Varun Beverages is the key bottling partner for PepsiCo, Devyani International Limited operates major Yum Brands outlets such as KFC and Pizza Hut, while Jubilant FoodWorks Limited (JFL) is the exclusive franchisee for Domino’s Pizza in India.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
