Iran War Stretches India Inc's Working Capital, Squeezes Margins

• The Iran war is impacting India Inc's balance sheets, causing stress in working capital cycles and affecting companies with global exposure.
• Logistics disruptions, volatile input costs, and delayed payments are increasing transit times, inventory, and tightening liquidity.
• Crude-linked sectors (petrochemicals, fertilizers) and export-oriented segments (gems, agri-commodities) are most affected.
• Longer shipping routes from alternate sources like the US (40-45 days vs. 7-8 days from West Asia) significantly extend cash conversion cycles.
• A prolonged conflict could increase working capital needs by 15-20% for affected sectors and shave off 50-100 basis points from India Inc's profitability.