RISING INPUT COSTS IN INDIA
European business sentiment improves, but inflation and debt risks mount: Survey
Business confidence across Europe's industrial and services sectors has improved since June, but rising inflation, higher borrowing costs and concerns over government debt are weighing on the economic outlook. Businesses are also increasingly worried about price pressures and fiscal policies.
Caught between costly inputs and cautious buyers, India Inc takes a hit
Companies in India's consumer goods, automobile, and paints sectors are increasing prices to offset rising costs. The West Asia conflict has severely impacted input and logistics expenses across various industries. While some companies have raised prices, they are still absorbing part of these costs to maintain demand. Consumer giants like Hindustan Unilever and Asian Paints report pressure on their margins despite price hikes.
Amul hikes milk prices by Rs 2-4 per litre from November 12
Amul has declared an increase in milk prices by Rs 2-4 per litre effective from November 12. This revision represents a 4-5% hike across their fresh pouch milk range. The Gujarat Cooperative Milk Marketing Federation attributed this increase to rising input and processing costs. The cooperative emphasized that the additional revenue will benefit milk producers significantly. They assured that a substantial portion of the revenue will return to farmers.
Tea industry groups back panel's proposal for minimum sustainable price as costs outpace prices
Five tea industry associations have welcomed the government committee's recommendation for a minimum sustainable price for tea. This recommendation aims to address rising production costs that are exceeding the prices received by producers. The proposed benchmark price is linked to wage movements and consumer price indices, which will be reviewed periodically. Producers believe this pricing mechanism will help absorb wage increases and support investment in tea production.
Moody’s raises India FY27 growth forecast to 7% as economy weathers Iran war energy shock
Moody’s Ratings has raised India’s FY27 growth forecast to 7% from 6.5%, citing resilient domestic consumption, improving investment and the economy’s ability to absorb the Iran war-induced energy shock. Robust capital goods activity and industrial credit growth point to a possible private capex revival, though inflation and tighter monetary policy pose risks.
Mother Dairy raises milk prices by Rs 2-4 per litre, effective Thursday
Mother Dairy has raised milk prices by Rs 2-4 per litre from November 12, citing higher procurement costs. The hike affects several milk variants in Delhi-NCR, with full cream milk now costing Rs 76 per litre and toned milk Rs 62. The company last increased prices in May 2026.
Higher input costs drag MRF Q2 net profit down 23%
Tyre maker MRF Ltd reported a 22.8% decline in net profit for the July-September quarter. Revenue from operations saw a growth of 17.4%, reaching Rs 8,660.19 crore compared to the previous year. However, total expenses also rose significantly, driven by sharp increases in raw material costs. The company announced an interim dividend of Rs 3 per share to its shareholders.
Whirlpool hikes prices by 5% from November 1 amidst inflationary heat
Whirlpool of India Limited announced a five percent price increase on all products, effective November 1, 2026. This decision aims to address cost pressures stemming from commodity inflation and rising crude oil prices. The price hike occurs ahead of the peak Diwali season, which is vital for consumer sales. The company faces challenges due to new energy regulations and increased production costs.
Don't let fare caps clip airlines' wings
Recently, airline price surges during festival seasons have raised concerns about imposing fare caps. While there is public demand for such measures, they may disrupt airlines' pricing flexibility. Regulations on airfares are more effective when they account for market demand and emergencies like natural disasters. Airlines might resort to add-on charges if their revenue is impacted by fare restrictions.
India's sugar mills face margin squeeze as ethanol production restrictions and rising costs hit profitability: Crisil
India’s sugar mills may see decreased operating margins due to factors like rising sugarcane prices and production restrictions. The shift to C-heavy molasses for ethanol is expected to affect profitability negatively. While sugar prices are firm, they may not fully offset the losses from reduced ethanol sales. Demand and realisations might support a modest growth in operating income for this fiscal year.
Consumer goods cos turn to cost cutting amid higher input prices to protect demand, revive volume growth
The cost-cutting comes amid an elevated input-price outlook flagged by several companies during recent earnings calls, due to high raw material prices, supply disruptions and freight charges. They are cutting trade investments as well as rationalising vendor networks to negotiate better rates through higher volumes.
Gokaldas Exports Q2 net profit jumps 410% to ₹41 crore
Gokaldas Exports reported a 13% year-on-year rise in Q2FY27 consolidated income to ₹1,135 crore, while net profit surged 410% to ₹41 crore. EBITDA grew 52% to ₹127 crore, with margins expanding 287 basis points to 11.2%, supported by a stronger product mix, productivity gains and better execution.
Berger Paints to hike prices as rising raw material costs squeeze margins
Berger Paints India has reported a rise in profit driven by strong performances in several divisions. The company plans to raise prices and implement cost-efficiency measures in November to safeguard margins. Despite these efforts, escalating raw material costs and forex volatility may pressure near-term margins. Revenue has increased year-on-year, but expenses have surged even more significantly. The industrial segment has shown high volume growth despite declining margins.
Russia's service sector stagnates, output rises marginally in October
Russia's service sector showed minimal growth in October, with a decrease in orders for the first time in three months. New businesses also fell, indicating a concerning trend amid declining export demand. Employment exhibited a marginal increase after a prolonged period of job cuts across the economy. Input cost inflation rose as firms adjusted selling prices to manage higher costs.
Kansai Nerolac Q2 net profit rises 8% YoY to Rs 144 crore
Kansai Nerolac Paints announced an 8% increase in net profit for the September quarter. The company reported a revenue rise of over 18% to reach ₹2,317.48 crore. This growth was driven by strong performance in both decorative and industrial segments. The company addressed challenges related to raw material prices and foreign exchange through pricing and cost management efforts.
New orders & robust demand lift India's October services growth to 4-month high
Growth in India's services sector increased to a four-month high in October due to strong domestic demand and business orders. The HSBC Services Business Activity Index rose to 55.8, reflecting improved business conditions. Conversely, manufacturing activity showed a slight decline, easing to a PMI of 54.7. While input prices continued to rise, the rate of increase was the slowest in over six years.
China Services PMI slows to three-month low; what lies ahead for Chinese stocks?
China’s services sector expanded at its slowest pace in three months as rising costs and intense competition squeezed margins. The weaker PMI and declining business confidence may weigh on Chinese equities, although sustained growth in export orders offers some support.
India's services growth accelerates to 55.8 in October, cost pressures ease to six-year low
India's services sector activity expanded at its fastest pace in four months in October, with the HSBC India Services Purchasing Managers' Index (PMI) rising to 55.8 from 55.2 in September, while input cost inflation eased to its lowest level in more than six years, according to data released by S&P Global on Wednesday.
Marico profit jumps 31%, flags rising input costs amid West Asia woes
Marico has reported a 13% increase in consolidated revenue, driven by strong volume growth in India and international markets. The company highlighted challenges from rising input costs due to geopolitical tensions and adverse weather circumstances. Managing director Saugata Gupta expressed awareness of potential inflation effects, especially in rural areas. Marico aims for mid-20% EBITDA growth by FY27 and expects annual revenue to exceed ₹15,000 crore.
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