Indian consumer firms face margin squeeze despite strong quarterly sales

Indian FMCG companies are expected to report narrower September-quarter profit margins despite double-digit sales growth, as rising raw material costs outpace price hikes. Analysts forecast operating margin declines of 45-150 basis points across consumer staples firms, with Hindustan Unilever and Britannia facing sharper pressure. Investors will track commodity prices, rural demand, festive spending and further price increases for signs of recovery.