Shares of restaurant and food delivery companies declined by up to 10% on Monday amid concerns over LPG supply disruptions linked to the ongoing conflict in West Asia.
Eternal, Swiggy and Jubilant FoodWorks were among the key laggards, with stocks in the segment falling as constraints in cooking gas supply raised worries over operations and costs. Shares of food delivery firm Eternal declined 3.42% to Rs 225.19 per share on the NSE, while Swiggy fell over 3.84% to Rs 258.25.
United Foodbrands Ltd., which operates Barbeque Nation, fell the most, declining 10% to Rs 195.30 apiece and hitting the lower circuit. Sapphire Foods followed with a decline of 6.42%.
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While United FoodBrands closed at 10% lower, Sapphire Foods ended 6.42% lower, followed by Jubilant FoodWorks with a 3.85% fall. Swiggy and Eternal closed 2.07% and 1.7% lower, respectively.
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Jubilant FoodWorks dropped 5.25% to Rs 430.50 per share. The company, which operates Domino's Pizza and Dunkin' Donuts in India, said supply of LPG cylinders to parts of its store network has been constrained due to the West Asia situation.
In an exchange filing, Jubilant FoodWorks said it is taking steps to conserve LPG and is working to shift to alternate energy sources such as electricity and piped natural gas (PNG). The company added that it is in constant engagement with oil marketing companies (OMCs) to remain apprised of the latest developments and plan operational responses accordingly, given the rapidly evolving nature of the situation.
The shortage has affected restaurant operators, which depend heavily on LPG for kitchen operations. Limited availability has led to supply constraints at outlets and increased reliance on alternative fuels, impacting efficiency and margins. Food delivery platforms have also been affected as restaurant partners face disruptions, potentially affecting order fulfilment.
India imports about 60% of its LPG requirement, with 85–90% sourced from Gulf countries. Supply disruptions due to the conflict have led to curtailment for commercial users such as hotels and restaurants.
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