Shares of Eternal Limited came under pressure in early trade on Thursday, declining nearly 4%, as concerns over a shortage of commercial LPG cylinders in India triggered fears that restaurants and eateries may be forced to temporarily shut operations if the situation persists.
On the National Stock Exchange of India, Eternal shares were trading around ₹215.83, down about 3.56%, compared with the previous close of ₹223.80. The stock opened at ₹220.25 and slipped to an intraday low of ₹214.92 during the session. Swiggy on the other hand also fell 3.7% today at Rs 274.04 on the NSE amid similar concerns.
The decline comes as investors assess the potential impact of the LPG shortage on the broader food services and food delivery ecosystem, which depends heavily on restaurant operations.
LPG shortage raises concerns for restaurant industry
The Federation of Hotel and Restaurant Associations of India (FHRAI) has warned that the shortage of commercial LPG cylinders could disrupt operations across multiple cities.
According to FHRAI Vice President Pradeep Shetty, a large number of hotels and eateries in Mumbai may have to shut down operations within two days if the supply situation is not resolved. Similar disruptions have also been reported from Pune, Aurangabad, Nagpur, Delhi, Karnataka, Telangana and Andhra Pradesh, raising concerns across the hospitality industry.
The shortage is largely linked to supply disruptions in LPG imports amid geopolitical tensions in West Asia, which have tightened the availability of commercial cylinders used by restaurants and hotels.
Why food delivery stocks are reacting
Food delivery platforms like Eternal — which operates online food ordering and restaurant discovery services — rely heavily on the operational capacity of partner restaurants. Any large-scale disruption in restaurant operations could potentially impact order volumes and delivery activity.
As a result, stocks linked to the food delivery ecosystem and restaurant sector have come under investor scrutiny, with market participants closely monitoring developments around LPG supply.
Shift toward electric cooking appliances
Interestingly, the LPG shortage has also triggered a shift toward alternative cooking solutions, particularly electric appliances such as induction cooktops.
Reports indicate that restaurants and small food businesses are increasingly exploring electric cooking equipment to manage operations amid gas shortages. This trend has led to gains in shares of companies manufacturing induction cookers.
Shares of Stove Kraft Limited and Butterfly Gandhimathi Appliances Limited — both known for producing induction cooktops and electric kitchen appliances — surged up to 4–5% in recent sessions as investors bet on rising demand for such products.
Stove Kraft manufactures kitchen appliances under brands such as Pigeon and Gilma, while Butterfly Gandhimathi offers a range of mixer grinders, induction cooktops and other kitchen appliances.