LPG shortage fears hit food delivery stocks; Swiggy, Zomato, Jubilant FoodWorks shares fall up to 3%

Shares of food delivery platforms Swiggy and Eternal, parent company of Zomato , along with several quick-service restaurant (QSR) companies, witnessed selling pressure on Wednesday amid concerns that a potential disruption in commercial LPG supplies could affect restaurant operations and order fulfilment across the food delivery ecosystem.

Triggered by fears of LPG shortages, Swiggy shares ended 3.36% lower at ₹284.70 on the BSE, while Zomato fell 1.02% to ₹223.80, as investors assessed the possible impact of cooking fuel constraints on restaurants that rely heavily on LPG. In a similar trend, shares of Jubilant FoodWorks , which operates Domino’s Pizza and Dunkin’ Donuts in India, dropped 1.87% to ₹472.45 on the BSE.

In the quick-service restaurant (QSR) space, Sapphire Foods India Ltd, a key franchisee of Yum! Brands’ KFC and Pizza Hut, declined 1.04% to ₹171.50, while Restaurant Brands Asia , which operates Burger King in India, fell 0.69% to ₹62.01.

Westlife Foodworld Ltd , the operator of McDonald’s outlets in western and southern India, also ended marginally lower, slipping 0.13% to ₹474.95.

Devyani International Ltd , the franchisee for KFC, Pizza Hut, and Costa Coffee, bucked the trend and rose 1.36% to ₹112.10.

Meanwhile, the broader market ended sharply lower. The Nifty50 declined 394.75 points, or 1.63%, to close at 23,866.85, while the Sensex fell 1,342.27 points, or 1.72%, to settle at 76,863.71. Broader markets also ended in the red, with the Nifty MidCap and Nifty SmallCap indices slipping 1.25% and 0.36%, respectively.

Brokerage Elara Capital said constrained cooking fuel availability could reduce restaurant operating capacity and, in turn, affect order fulfilment on delivery platforms.

“Constrained cooking fuel availability could reduce restaurant operating capacity and affect order fulfilment on food delivery platforms,” said Karan Taurani, senior vice-president at Elara Capital.

According to the brokerage, nearly 28% of gross order value (GOV) across food delivery platforms could be exposed if LPG shortages persist, as a significant portion of orders originates from independent restaurants that depend on gas-based cooking.

However, analysts believe the impact could be partly offset by a shift in consumer ordering patterns. If LPG-dependent cuisines such as Indian or Chinese face disruptions, customers may redirect orders toward quick-service restaurant chains, which rely more on electric ovens and fryers.

Industry estimates suggest the food service sector includes nearly five lakh restaurants employing more than 8.5 million people, with about 80% of kitchens dependent on LPG, making the sector vulnerable even to short-term supply disruptions.

Hotels and restaurants in Bengaluru, Mumbai, Chennai and Kolkata have reported shortages of commercial LPG, with industry bodies warning of operational disruptions if supplies do not normalise soon.

However, petroleum minister Hardeep Singh Puri said India is sourcing energy imports through alternative routes and locations, adding that there is no shortage of LPG.

“India’s energy imports are continuing to flow in from different sources and routes. We have taken steps to ensure that 100% supply of CNG and PNG to domestic consumers is maintained, while other industries continue to receive 70–80% of their supplies despite the war situation,” Puri said.

“We are committed to ensuring uninterrupted supply of affordable energy to our domestic consumers. There is no shortage for domestic consumers and no reason to panic,” he added.

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