PG Electroplast Jumps 9% as LPG Supply Fixes Normalize AC Production

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AuthorKavya Nair|Published at:
PG Electroplast Jumps 9% as LPG Supply Fixes Normalize AC Production
Overview

PG Electroplast shares jumped 9% Wednesday as the company reported near-normal air conditioner production. The firm has identified alternative LPG solutions, largely addressing supply challenges that had previously impacted output and raised concerns for its fiscal year 2026 revenue guidance.

Shares Rally as Production Normalizes

PG Electroplast Ltd. saw its stock price climb as much as 9% on Wednesday, March 25. This surge followed the company's announcement that room air conditioner (AC) production has returned to near-normal levels. The firm confirmed it has successfully implemented alternative solutions for its Liquefied Petroleum Gas (LPG) needs, significantly easing supply constraints that had previously hampered manufacturing.

Addressing LPG and Geopolitical Challenges

The company stated that these new solutions have addressed the LPG challenges "to a large extent for the time being." This update comes after PG Electroplast had previously alerted exchanges to difficulties stemming from restricted LPG supplies. These restrictions were linked to the global geopolitical situation, particularly the ongoing war in West Asia, which led suppliers to reduce distribution, directly impacting AC output at several plants.

Previous Concerns for FY26 Outlook

Prior to this positive development, there were significant concerns about potential disruptions to the company's financial year 2026 revenue targets. Vikas Gupta of PG Electroplast had indicated to CNBC-TV18 on March 13 that the LPG shortage could affect the fiscal year 2026 revenue guidance. He also cited pressures from polymer availability and a sharp 40% to 50% increase in polymer prices. The room AC segment is critical for PG Electroplast, accounting for 73% of its revenue in the first nine months of fiscal year 2026, a segment that also includes Washing Machines and Coolers.

Market Reaction

The stock was trading 7.3% higher at ₹536.7 following the announcement. Despite this recent gain, shares remain down 13.5% over the past month, reflecting ongoing market caution regarding supply chain volatility and price pressures.

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