Indian fast‑moving consumer goods (FMCG) firms are confronting a sharp rise in key input costs, notably palm oil and sugar, which is compressing operating margins.
To preserve consumer goodwill during the Diwali festive period, many companies are absorbing part of the price increase rather than passing the full burden onto shoppers, even as margin pressure remains high.
The pressure on operating margins is significant and unlikely to ease soon, leaving firms to balance profitability with price stability throughout the holiday season.
