Eternal (formerly Zomato) and Swiggy plummeted as much as 4% to 7%, as a worsening national shortage of commercial LPG cylinders threatened to paralyze India’s food delivery ecosystem.
The crisis has moved beyond a “supply hiccup” into an operational emergency, with industry bodies warning that thousands of restaurants may be forced to suspend operations within 48 to 72 hours.
The “Empty Kitchen” Crisis
The stock decline is a direct reaction to reports from major food hubs like Mumbai, Bengaluru, and Pune, where commercial LPG deliveries have reportedly ground to a halt.
- Restaurant Closures: The Indian Hotels and Restaurant Association (AHAR) noted that nearly 20–30% of restaurants in Mumbai have already shut down, with up to 70% facing closure by the weekend if supplies are not restored.
- “Crisis Menus”: To conserve dwindling gas reserves, active restaurants are stripping “slow-cooking” items—like tandoori breads, handi gravies, and slow-cooked dals—from their menus.
- The Quick Commerce Pivot: While the food delivery segment is bleeding, some investors are shifting focus to the companies’ quick commerce arms (Blinkit and Instamart), betting that households will cook more at home using domestic LPG, which the government has prioritized under the Essential Commodities Act.
Stock Performance (March 12, 2026)
The sell-off extended across the entire Quick Service Restaurant (QSR) and food-tech sector.
| Company | Intraday Low / Fall | Market Reaction |
| Eternal (Zomato) | ₹208.50 (-7.2%) | Reached its lowest level in five trading sessions. |
| Swiggy | ₹272.95 (-4.0%) | Approaching record lows post-IPO. |
| Jubilant FoodWorks | ₹458.20 (-6.9%) | Concerns over Domino’s high-heat oven operations. |
| Sapphire Foods | ₹161.40 (-7.5%) | Sharpest decline among the major QSR chains. |
Why Is There an LPG Shortage?
The crisis is a domestic ripple effect of the Iran-Israel-US conflict in West Asia:
- Strait of Hormuz Blockade: Roughly 85% of India’s LPG imports transit through this chokepoint. With the corridor effectively closed to Western-linked shipping, supply chains have snapped.
- Force Majeure: Major suppliers like Qatar Energy have declared Force Majeure, allowing them to legally skip deliveries due to “unforeseen circumstances” beyond their control.
- No Strategic Reserves: Unlike crude oil, India maintains zero strategic reserves for LPG, leaving the market entirely dependent on “just-in-time” imports.
The Gig Worker Impact
The Telangana Gig and Platform Workers’ Union (TGPWU) issued a statement today warning that the gas shortage has already impacted over 50–60% of daily orders. With fewer kitchens firing, delivery partners are facing a massive drop in daily earnings, prompting calls for “immediate relief” payments from the platforms.
The Silver Lining?
Despite the panic, analysts from Motilal Oswal and Geojit are advising long-term investors not to sell in a panic. They expect the government’s recent move to increase refinery LPG production by 25% and the arrival of “Hormuz-bypassing” cargoes later this week to stabilize the market by late March.
