Gas crisis hits India amid Middle East war: These 30 stocks likely to see biggest impact

Gas supply shortages have begun to show up in Indian cities as the war in the Middle East continues to rage on, despite US President Donald Trump suggesting that the conflict may end soon. Several sectors including fertilisers, quick service restaurants (QSR), tiles and others are likely to be on the direct line-of-fire amid the crisis.

As a result of supply constraints arising from the closure of the Strait of Hormuz, gas prices have surged in India. Domestic cooking gas now costs Rs 60 more per cylinder, while commercial LPG price rose by Rs 114.5. European natural gas prices jumped nearly 40% last week after Qatar Energy halted production at a key LNG facility amid escalating Middle East tensions.

The Indian government today issued the Natural Gas (Supply Regulation) Order 2026, in order to prioritise PNG, CNG and LPG production in gas allocation. However, concerns around persisting Middle East tensions leading to prolonged supply cuts have been looming over markets. Here are 30 stocks which may directly be impacted in case the gas shortages persist:

Fertiliser stocks: GNFC, Chambal Fertilizers, RCF, FACT, Deepak Nitrite

Urea production relies heavily on imported LNG, and a sustained shortage would impact fertilizer companies, just as farmers prepare for the coming summer crop cycle, followed by the kharif or monsoon crop season. India imports nearly its entire requirement of muriate of potash and up to 60% of di-ammonium phosphate (DAP), besides being dependent on LNG imports.

Gujarat Narmada Valley Fertilizers & Chemicals informed exchanges on Friday that the war in the Middle East had adversely impacted the supply of Liquefied Natural Gas (LNG), and its supplier GAIL has issued a force majeure notice. “Accordingly, due to the supply constraints, the allocation of RLNG quantities to GNFC under the supply agreement has been restricted to 60% of the Daily Contracted Quantity (DCQ) on an overall basis with effect from March 06, 2026. This will have an impact on the production of Neem Urea,” it said.

As a result, the stock tanked more than 5% on Monday. However, all fertiliser stocks are up today, after the government issued the Natural Gas (Supply Regulation) Order 2026, noting that fertiliser plants will receive 70% of their average gas supply over the past six months.

Other stocks in the sector which will remain in focus include Chambal Fertilizers & Chemicals, RCF, FACT and Deepak Nitrite. These stocks have fallen up to 20% in 2026 so far.

Restaurant stocks: Eternal, Swiggy, Jubilant Foodworks, others

The shares of food delivery conglomerates Eternal and Swiggy, along with quick-service restaurant operators like Jubilant Foodworks (operates Domino’s), Devyani International and Sapphire Foods (operates KFC and Pizza Hut), Westlife FoodWorld (operates McDonald’s) and Speciality Restaurants (operates Mainland China and other brands), will remain in focus amid rising LPG shortages.

Supply shortages have emerged in several cities, including Mumbai and Bengaluru, with restaurants in some areas warning of possible closures due to insufficient fuel. India imports more than 60% of its domestic LPG needs, and around 85–90% of these imports pass through the Strait of Hormuz. The country consumed 31.3 million tonnes of LPG in FY25, of which only 12.8 million tonnes were produced domestically.

Indian government is trying to regulate the LPG supplies during the ongoing crisis. “In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use,” the Ministry of Petroleum & Natural Gas said in a post on X.

“The ministry has prioritised domestic LPG supply to households and introduced 25 day inter- booking period to avoid hoarding/black marketing. Non domestic supplies from imported LPG are being prioritised to essential non domestic sectors such as Hospitals and Educational institutions,” it added.

Gas importers, transporters & distributors: IGL, MGL, Petronet LNG, GAIL

Companies responsible for importing, transporting, and distributing gas will possibly remain at the forefront of the crisis, facing simultaneous volume and price risks. LNG importer Petronet LNG faces direct exposure to cargo disruptions from Qatar due to the closure of the Strait of Hormuz. Gas transmission giant GAIL will possibly suffer reduced throughput volumes as supply tightens, while city gas distributors IGL and MGL will experience the dual challenge of securing supplies and managing the pass-through of sharply higher costs to end consumers (CNG for vehicles and PNG for homes/industry), creating both volume and margin risk.

Tile makers: Kajaria Ceramics, Somany Ceramics, Cera Sanitaryware

As the Middle East conflict continues to choke India’s domestic gas supply, tile companies are likely to be impacted as LNG and propane account for approximately 70% of fuel for the Morbi Tiles industry, which is notably curtailed now. “This could impact domestic Tile production and margins, as energy cost is 20-25% of net sales. Approximately +5% rise in fuel cost could impact EPS by est 5-7%,” Jefferies said.

The international brokerage sees the supply constraints possibly impacting the production volumes of tile makers, as many manufacturers may find it unviable to operate due to gas price spike. Notably, international LNG spot prices spiked by more than 46% last week, as Middle East conflict escalated.

Auto ancillaries: Samvardhana Motherson

While rising oil prices may impact auto stocks, rising gas prices may impact the auto ancillary industry. Nomura in its note said that companies like Samvardhana Motherson may face cost pressure from rising gas prices in the EU in the near term, which however gets passed on with a lag. “Auto ancillaries could also face more near-term downside as valuations are not close to -1SD,” it added.

Consumer Durables: PG Electroplast, Amber Enterprises

Gas is one of the key raw materials for fridge-makers in the consumer durables industry. PG Electroplast said in an exchange filing that its suppliers have imposed certain supply restrictions, due to which the company’s allocation of LPG quantities has been constrained.

Other key players in the industry, including Amber Enterprises, LG Electronics India, Voltas, Blue Star and Hitachi Energy India will also remain under the radar.

Other stocks:

Glass makers like Borosil Renewables will also be under active watch amid the rising gas shortages, as furnaces in this industry are highly gas-intensive. The company’s Executive Chairman Pradeep Kheruka told CNBC-TV18 during an interview today that it has backup fuel and operations are currently normal, although it has received notice that supply contracts are subject to force majeure during the ongoing conflict.

Other stocks like SRF, Finolex Industries, Styrenix, Aarti Industries and others may also be affected.

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