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.

— Source publishedThu, 28 May, 2026, 10:22 IST·First seen Thu, 28 May, 2026, 12:06 IST·Source ET Retail

What happened

Indian FMCG sector · 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

Key facts

  • 3-7% price hikes
  • 8-10% raw material cost increase
  • palm oil +11%
  • Brent crude +32%
  • HDPE +56%
  • gross margins -50 bps YoY
  • -30 bps QoQ

Why this matters

Scout bolt-on premium and D2C targets whose mix can absorb input shocks, while distressed mid-tier private label players become cheaper as margin pressure deepens.