FMCG Brands Face Margin Pressure as Key Input Costs Surge

18 Oct 2026, 1:21 pm · 6h ago · 1 min read · YourStory

Indian fast-moving consumer goods companies are grappling with severe margin pressure in the fiscal year's second half due to surging raw material inflation. According to Grant Thornton Bharat partner Naveen Malpani, September saw palm oil prices rise 21% year-on-year, while sugar increased 18% alongside crude-linked derivatives and packaging costs. Operating margins are projected to compress between 45 and 150 basis points across major consumer staples brands. Firms absorbed higher costs to protect consumer demand during the festive season, but face tough decisions regarding post-Diwali price hikes amid sensitive rural market dynamics.