Indian paint maker JSW Dulux (JSWD.NS) expects to log ‌double-digit volume growth in fiscal year 2027 but warned margins will face pressure in the near term due to volatile input costs related to Middle East uncertainty, a top executive told Reuters on ​Friday.

The warning highlights how increases in crude oil-linked raw material costs increases related to the ​war in the Middle East are squeezing profitability across India's paint sector ⁠even as demand stays robust. The higher costs are forcing paint makers to hike ​prices, while disruptions in gas supply are also taking a toll on production.

"There are ​challenges… a lot of the workshops are not running full steam because of non-availability of gas," CEO Rajiv Rajgopal said, adding demand softness could become clearer from mid-June through July.

Dulux raised prices about 10% ​between March and May, but margins remain under pressure as oil-linked cost increases outpaced ​product price hikes. Oil prices have risen sharply since the conflict began in February and Brent ‌crude ⁠oil futures were trading at $107.49 a barrel at 0642 GMT on Friday.

The impact has so far been limited on JSW Dulux's bottom line. On Wednesday, it posted a roughly 16% rise in March quarter net profit from a year ago while logging volume ​growth of about 7% ​for fiscal 2026.

Rajgopal ⁠said it was too early to assess any slowdown in discretionary home improvement demand.

The paint maker, which competes with the likes ​of Asian Paints (ASPN.NS) and Grasim Industries' (GRAS.NS) Birla Opus, is ramping up ​its mid-market ⁠presence and targeting mass urban consumers to counter intensifying competition, a move that could weigh on margins in the short term, he added.

Now part of the JSW Group after ⁠last year's $1.6 ​billion acquisition of a 75% stake from Dutch firm ​Akzo Nobel (AKZO.AS), JSW Dulux expects integration benefits after the merger to support margins from the second half of ​fiscal year 2027.