New Delhi, June 3 -- The operating margins of India's auto component sector are expected to decline slightly this fiscal due to rising input and freight costs linked to the West Asia conflict, according to a report by Crisil.

The report said the sector's operating margins are likely to moderate by 100-150 basis points this fiscal from around 12 per cent last year, but that revenue growth might remain resilient, keeping absolute operating profits stable. It noted that ongoing geopolitical tensions are reshaping global supply chains and increasing working capital requirements for manufacturers.

"The global supply-chain uncertainty is prompting manufacturers to maintain higher buffer stocks to safeguard production schedules. This is likely...