Shares of India's food delivery platforms and restaurant operators plummeted as an escalating Iran war triggered an LPG shortage, crippling the $335-billion food & beverage industry.
Zomato parent Eternal Ltd. fell as much as 4.8% in Mumbai trading, while Swiggy Ltd. hit a record low as investors priced in a sharp contraction in order volumes.
The sell-off extended to fast-food majors like Jubilant Foodworks Ltd., which operates Domino's Pizza in India, as the sector grapples with an acute LPG shortage to keep commercial kitchens firing.
Logistics have been severely hampered by the closure of key maritime chokepoints, including the Strait of Hormuz, following escalations between Israel-US and Iran.
Already, some establishments have begun reducing operating hours and stripping 'slow-cooking' items from menus to conserve dwindling reserves.
Analysts at Motilal Oswal wrote that reduced menus, limited cooking hours, or temporarily shut kitchens at some restaurants may limit order availability on platforms.
