Synopsis
The March quarter was largely stable for companies, with most firms reporting revenue growth in line with expectations and improving operating metrics. However, food delivery, quick commerce, ecommerce, beauty, eyewear, furniture and logistics firms are preparing for higher costs in the upcoming quarters even as consumer sentiment remains uneven.Listen to this article in summarized format
The March quarter was largely stable for companies, with most firms reporting revenue growth in line with expectations and improving operating metrics. However, food delivery, quick commerce, ecommerce, beauty, eyewear, furniture and logistics firms are preparing for higher costs in the upcoming quarters even as consumer sentiment remains uneven.
BofA Securities said in a May 26 report that the ongoing first quarter of 2026-27 will be important to watch as the impact of higher fuel prices becomes visible. The brokerage listed macro, inflationary and geopolitical headwinds among the key factors to monitor for these sectors.
“At least the first two quarters of FY27 will be subdued for most companies as consumer sentiment is a bit shaky because uncertainty remains high,” said Arvind Singhal, chairman of Gurgaon-based management consulting firm The Knowledge Company.
The issue for new-age companies is not just higher fuel prices. Analysts said the larger question is how much of the increase in fuel, packaging, freight and input costs can be passed on to consumers without hurting order frequency, and how much will have to be absorbed through cost controls, efficiency gains, delivery density, and platform and handling fees.
That trade-off is sharper for internet-first companies than for large consumer goods firms.
Fast-moving consumer goods companies have a longer history of managing input cost cycles through price hikes, grammage cuts and pack size changes. Internet-first companies, especially those built around speed, convenience and repeat usage, have less room to raise prices without risking lower demand.
The pressure is already visible in the broader consumption economy. ET earlier reported that Hindustan Unilever reduced sachet sizes and increased prices of larger packs by 2-3%, even as packaging costs for consumer brands surged 25-30% following supply chain disruptions linked to the West Asia conflict.
New-age luggage makers such as Mokobara, Nasher Miles and Uppercase are facing 35-50% inflation in key raw materials prices, while furniture makers are seeing higher costs for foam, packaging, lacquer, hardware and freight. Mattress maker Wakefit has said it has increased the prices of its products by about 10% on average.
“Crude prices are only one part of the issue. Energy and logistics costs, and regulatory changes, also increase costs. But the bottom line is that most consumers can’t absorb 8-10% price increases, no matter how much companies justify them,” Singhal said.
Better placed
Food delivery and quick commerce companies may be better placed than other discretionary categories because they have monetisation levers such as platform and handling fees, advertising income and better delivery density.
BofA said most Indian internet names are better placed because of their focus on more affluent users. However, it also noted that Swiggy saw material earnings before interest, taxes, depreciation and amortisation (Ebitda) and earnings per share (EPS) downgrades as quick commerce losses remain a key factor despite improving margins.
Karan Taurani, executive vice president at Elara Securities, said food tech platforms’ 20-25% growth in the March quarter was broadly in line with expectations, while quick commerce growth was lower due to fewer dark-store additions.
“Fuel price hikes will have some negative impact on demand in Q1, but it’s not going to be huge for quick commerce and food tech platforms because they have levers in the form of handling fees, platform fees, etc.,” Taurani said.
Volatile cost environment
Logistics companies will feel the impact more directly, though their ability to pass on fuel costs is also clearer. Delhivery has said its fuel surcharge and diesel-price indexing framework cover more than 90% of contracts, limiting fuel-led margin volatility. Pump prices have risen by about Rs 3 per litre and would be passed on where contracts allow it, though the company is not planning a broad increase in prices.
BofA said Delhivery delivered a strong quarter, with revenue and Ebitda beating expectations, and saw 7-8% upward revision to its Ebitda and EPS estimates, helped by improved operating momentum. Analysts said larger logistics companies may benefit in a volatile cost environment if smaller rivals find it harder to absorb fuel, freight and labour shocks.
BlackBuck, which is closer to trucking and trade flows, has said the West Asia conflict could create short-term headwinds and drag trade movement, though it does not expect long-term impact on customer acquisition, retention or revenue metrics.
Input-heavy consumer companies face a different challenge. Mamaearth has implemented calibrated price hikes due to crude-linked packaging and raw material pressures. Lenskart flagged currency pressure on import costs, though it said the impact had been cushioned through vertical integration, shifting more frame manufacturing to India and supply chain optimisation.
