New Delhi, Nov. 11 -- India's top consumer goods companies are heading into a challenging second half of the fiscal year, with rising input costs, pressure on margins and uneven demand threatening to erode the gains from volume growth in the September quarter.

While companies managed to expand revenues and volumes through selective price hikes and product-mix changes, analysts warn that sustaining growth without further margin pressure will be difficult.

The challenge is compounded by the prospect of crude oil prices remaining elevated until the US and Iran reach a lasting peace agreement. Drought conditions in several parts of the country, meanwhile, threaten rural incomes and could weigh on demand for consumer goods, adding to the pre...