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The impact of the ongoing war between Iran and Israel is directly visible on many sectors of India. Due to international tensions and the resulting crude oil prices, freight charges and supply chain disruptions, costs in related sectors have increased significantly. This has increased concerns about companies' profits, cost of stock holding and future demand.

High crude oil prices are making raw materials like plastics, resins, insulation and packaging expensive. Besides, the cost of fuel and transport has also increased. Additionally, disruptions in transportation routes and airspace have made freight transportation expensive and delivery delays, forcing companies to hold excess stock and increasing expenses. A huge decline is also being seen in the shares of companies selling consumer durables in the country. Shares of pipe companies have fallen by up to 21 percent.

Impact on consumer durables

The biggest concern currently in the consumer durables sector is the impact on export sales in Q1FY27, especially if the airspace in the Middle East remains closed. However, most of the goods go via sea, which is not much affected right now, but the cost of air freight may put pressure on the profits of the companies.

Demand in this sector is price sensitive, so companies are not able to easily pass on the increased costs to customers. This may affect the earnings (EBITDA) of companies in a short time. Additionally, supply chain issues remain, especially if supplies of essential goods from countries in the Far East are affected. Nifty Consumer Durables have declined by 12.3% since the war started on 27 February 2026.

Shock to RAC companies in peak season

The Room Air Conditioner (RAC) sector has suffered a setback at a time when March is the most important month of production. Its impact may continue till Q1FY27, which may impact preparations to meet summer demand.

Shortage of LPG has emerged as a big problem, due to which there is difficulty in making heat exchanger. Due to this, some companies are now using other fuels like oxyacetylene and PNG. However, due to rising prices of resins and industrial gases, there is pressure on profits, due to which companies are considering increasing prices. Due to the uncertain environment, companies are avoiding accumulating expensive stocks. Since February 27, shares of Amber Enterprises and PG Electroplast have fallen 21%, Voltas has fallen 20%, Blue Star has fallen 16% and Havells has fallen 12%.