FMCG braces for fresh price hikes as palm oil, crude, HDPE costs squeeze H1 FY27 margins
Systematix flags 3-7% price hikes or grammage cuts likely across Indian food and personal care in H1 FY27, as palm oil (+11%), Brent (+32%) and HDPE (+56%) drive 8-10% raw material inflation. Gross margins already down 50 bps YoY, 30 bps QoQ.
Systematix Research warns Indian F&B and HPC companies will likely raise prices further or cut grammage in H1 FY27 to offset 8-10% raw material inflation, driven by surging palm oil, crude, and HDPE packaging costs squeezing gross margins.