New Delhi, April 15 -- A hotter-than-usual summer forecast by the India Meteorological Department (IMD) is set to lift revenues for soft drink bottlers this fiscal, even as rising costs and intensifying competition are expected to put pressure on margins, according to Crisil Ratings.

"After subdued sales growth last fiscal, soft drink bottlers are poised to see revenue rebound to their long-term average growth of ~15% this fiscal," the report said. A key driver of this recovery is the expected spike in temperatures. The summer months account for about 40% of annual soft drink sales, and IMD has predicted above-normal temperatures. The possibility of El Nino, which typically prolongs summers, could further boost consumption.

Crisil's ana...