High commodity prices continue to eat into the operating incomes of FMCG companies.

Dabur India on Thursday said the soaring inflation during the second quarter could lower its operating margin by around 150-200 basis points year-on-year. “During the quarter, inflation was at peak levels which impacted gross margins,” the consumer goods major said in a regulatory filing. In addition, the geopolitical situation continued to impact the business with unprecedented inflation during the quarter leading to weak demand trends across categories.