LPG Shortage May Hit Food Delivery Order Growth in Q4FY26 - Zomato, Swiggy Business get effect: Motilal Oswal
The shortage of LPG in the country is expected to affect the food delivery services in upcoming days.
Food delivery platforms Zomato and Swiggy may see slower order growth in Q4FY26 as India’s LPG shortage disrupts restaurant operations, according to a report by Motilal Oswal Financial Services.
Analysts at Motilal Oswal Financial Services shared that supply disruptions in liquefied petroleum gas (LPG) were triggered by the closure of the Strait of Hormuz. It will sharply affect the ecosystem of India’s food delivery in case the shortage continues.
Motilal Oswal LPG shortage report noted that food delivery platforms like Zomato and Swiggy could see a near-term change in order volumes as restaurants face difficulty with limited LPG availability.
The official added, "Food delivery gross order value (GOV) growth, which had been improving in recent quarters, could face near-term hiccups if the LPG disruption persists through March."
Thousands of restaurant kitchens are completely dependent on the commercial LPG cylinders. The supply disruption can quickly translate into fewer operating hours. It will cut down the menu or even provisional shutdowns.
As per the information shared on the brokerage, limited cooking ability at restaurants may reduce order accessibility on delivery apps. It can result in a temporary slowdown in the March quarter.
On the BSE, shares of Zomato-parent Eternal and Swiggy turn down by 4.7 per cent each in the intraday trade.
We Indians consume about 30 million metric tonnes of LPG in a year. With 55-60 per cent of the supply sourced through imports. About 90 per cent of the imported LPG directly originates from Middle Eastern suppliers. Due to the West Asia conflict LPG supply faces disruption.
Motilal Oswal Financial Services also added, "Unlike crude oil, India does not maintain much strategic LPG reserves, which means supply disruptions tend to show up quickly in the market, particularly in the commercial segment where inventory buffers are smaller".
