New Delhi: FMCG companies face sustained margin pressure in the second half of the current fiscal year as rising input costs squeeze profitability, with firms weighing post-Diwali price hikes against the risk of hurting consumer demand, particularly in price-sensitive mass-market and rural categories.
Input-cost pressures intensified in the September quarter, reversing some of the moderation seen in the preceding quarter, which squeezed margins even as companies absorbed part of it to protect consumer demand during the festive season.
