Shares of food delivery platform swiggy and cloud kitchen operator Eternal declined sharply on Thursday as commercial LPG shortages disrupted restaurant operations and weighed on online order volumes.
Swiggy, Eternal tumble up to 5 per cent on LPG shortage fears
Swiggy hits 52-week low; Eternal leads Nifty 50 losers.
Motilal Oswal warns LPG crunch may dent food delivery orders
Restaurants may cut operations, risking near-term slowdown in platform volumes
Swiggy shares fell 5 per cent to a 52-week low of ₹271.10 compared with the previous close of ₹284.60. The stock later recovered some losses and was trading at ₹275 at 9.45 am.
Eternal shares also slumped 5 per cent to ₹213.06 from the previous close of ₹223.80, trading as the major laggard of Nifty 50 constituents. At 9.46 am, the stock traded 4 per cent lower at ₹214.62.
Brokerage firm Motilal Oswal Financial Services flagged potential near-term risks to food delivery platforms due to supply disruptions in commercial LPG cylinders across several cities.
“Commercial LPG cylinder supplies have tightened in several cities, with restaurants reporting delays in deliveries owing to disruption in supply from the Strait of Hormuz,” Motilal Oswal said.
The brokerage noted that it evaluated key factors that could influence restaurant operations and food delivery businesses, including commercial LPG usage in India, exposure to the Strait of Hormuz, LPG usage intensity and buffer capacity at restaurants, and the broader impact on food delivery volumes.
“Food delivery (FD) GOV growth has been improving in recent quarters, but the LPG disruption could create a near-term hiccup if shortages persist through March. Reduced menus, limited cooking hours or temporarily shut kitchens at some restaurants may limit order availability on platforms, leading to temporary moderation in 4Q FD order volumes.” Motilal added.
Swiggy and Zomato GOVs
Motilal Oswal highlighted that food delivery growth momentum had strengthened in recent quarters. Platform gross order value (GOV) year-on-year growth for Zomato stood at approximately 15.9 per cent, 16.2 per cent, 18.6 per cent, and 21.1 per cent over the last four quarters. Swiggy reported GOV growth of about 17.6 per cent, 18.8 per cent, 18.8 per cent, and 20.5 per cent year-on-year during the same period.
The brokerage said its current estimates factor in Zomato’s GOV growth at around 15.3 per cent and 18.0 per cent for FY26 and FY27, respectively, while Swiggy’s GOV growth is projected at approximately 20.2 per cent and 17.3 per cent, supported by gradual market share gains and continued expansion across cities.
However, if the commercial LPG shortage persists through the remainder of March, it could begin to reflect in a temporary decline in order volumes in Q4.
Investors are closely monitoring the duration of supply disruptions and their potential impact on restaurant operations, a key driver of business for food delivery platforms.
Published on March 12, 2026