New Delhi, Aug. 6 -- The West Asia conflict has inflicted a steeper raw material cost shock on Indian companies than the Russia-Ukraine war, eroding profitability across the board.

Raw materials in the April-June quarter of FY27 accounted for a larger share of both expenditure and sales than they did at the peak of the crude oil crisis in 2022 triggered by Russia's invasion of Ukraine, squeezing India Inc's operating and net profit margins to three-year lows.

A Mint analysis of standalone earnings of 642 non-banking, financial services and insurance (non-BFSI) companies shows raw material cost accounted for almost 45% of net sales and about 50% of total expenditure during the quarter. In other words, manufacturers spent nearly Rs.45 out...