Commodity price inflation and LPG shortage
Rising steel and LPG costs may compress margins in Q1 FY27 before pass-throughs are settled with OEMs.
Kross · Material risks, their source context, and severity in the latest available quarter.
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Risk intelligence
Rising steel and LPG costs may compress margins in Q1 FY27 before pass-throughs are settled with OEMs.
Management noted that cost pass-throughs to OEMs are typically delayed by one quarter, creating temporary margin pressure.
Management stated they cannot raise prices beyond competitors, limiting margin improvement despite cost pressures.
Rising fuel prices could increase operating costs for CV operators, potentially dampening demand.