Indian FMCG braces for fresh 3-7% price hikes as raw material costs surge in H1 FY27

Systematix Research flags 8-10% input cost inflation across Indian F&B and HPC players, driven by palm oil (+11%), Brent crude (+32%) and HDPE (+56%). Companies likely to deploy 3-7% price hikes and grammage cuts in H1 FY27 to defend margins, already down 50bps YoY and 30bps QoQ.

— Source publishedThu, 28 May, 2026, 09:24 IST·First seen Thu, 28 May, 2026, 09:36 IST·Source The Hindu BusinessLine

What happened

Indian FMCG sector · Systematix Research warns Indian F&B and HPC companies likely to push further price hikes and grammage cuts in H1 FY27 to offset 8-10% raw

Key facts

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

Why this matters

Distressed mid-tier HPC and F&B targets exposed to crude and palm derivatives become accretive tuck-in candidates as margin pressure forces strategic reviews in H1 FY27.