New Delhi, March 16 -- As if rising competitive intensity and muted demand were not challenging enough, the Indian paint industry now faces another headwind: cost inflation.

The sector relies heavily on crude-led derivatives as input materials, so rising oil prices mean higher operating costs, thus hurting margins. Around 30-35% of the sector's production cost is projected to be linked to crude prices.

Brent crude price has risen 68% so far in 2026 to $102 a barrel due to West Asia tensions. Paint companies have successfully dealt with cost inflation in the past by implementing gradual price hikes.

For instance, as per an ICICI Securities report dated 11 March, paint companies raised prices sharply - by over 15% - in FY08-09, when crud...