New Delhi, Aug. 26 -- India's tyre manufacturers are likely to see operating margins moderate this fiscal as rising raw material costs outpace staggered price increases, according to Crisil Ratings. Margins are expected to decline from around 14.2 per cent last fiscal, with the pressure largely viewed as temporary.

The report noted that key inputs have risen sharply, with natural rubber prices increasing to about Rs 275 per kg in June 2026 from around Rs 220 per kg in FY26. Tight supplies due to unseasonal rainfall and uneven monsoons in India and Southeast Asia have contributed to the increase.

The conflict in West Asia has added pressure by raising costs of crude-linked inputs such as synthetic rubber, carbon black and nylon tyre cord...