Margins take lead over volumes

Companies are staggering price hikes to combat rising input cost inflation and protect margins.

- harsha.jethmalani [e-mail]

The impact of these increases is likely to reflect in Q1FY27 earnings, but there can be further hikes—specially if crude oil prices stay elevated.

The West Asia war has triggered a spike in crude oil prices and LPG shortages. Given the strong linkage of crude derivatives to packaging, logistics, raw materials and supply chains, multiple sectors are feeling the heat. Cement is among the first to respond. Average pan-India cement prices have edged up by ₹10-12 per bag in April, showed dealer channel checks by Emkay Global Financial Services. The cost of procuring key fuels, imported petroleum coke, coal and packaging material remains elevated. A potential diesel price hike in May (post state polls) may further raise freight costs.

While price increases can improve realizations, sustaining them hinges on demand.