Bengaluru, May 25 -- Value fashion retailers across the country are likely to face margin pressure in the upcoming quarters as rising crude oil prices are driving up the cost of polyester and other fabrics.

Executives at V-Mart Retail Ltd, Vishal Mega Mart Ltd, and Kewal Kiran Clothing Ltd (KKCL) said crude oil-linked inflation has begun to push up yarn and sourcing costs across apparel and general merchandise categories, with the full impact expected to play out over the next few months.

Value fashion retailers face a double whammy: their heavy reliance on polyester and synthetic blends exposes them to crude-linked inflation, while their price-sensitive customer base leaves little room to pass on rising costs without hurting demand.

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