‘Smog’ in the boardroom: India Inc. confronts the cost of air pollution

India Inc. faces rising air pollution costs, with earnings calls increasingly addressing smog's impact on business operations and risks.

Air pollution has moved from the margins of environmental reporting to the center of corporate boardroom conversations in India — and increasingly, into earnings calls.

In 2025, the phrase “air pollution” was mentioned 988 times in earnings calls of companies in the BSE AllCap index, according to a Bloomberg analysis. The spike reflects a sharp rise in management commentary on smog-related disruptions, regulatory curbs and shifting consumer behavior. What was once treated as a seasonal civic concern is now being framed as a recurring business risk.

For consumer-facing companies, pollution is directly affecting sales. Retailers have cited weak store footfall during severe smog episodes, as customers avoid stepping out. In the December quarter, Shoppers Stop reported a 69% decline in net profit, partly attributing it to elevated pollution levels in northern India.

Quick commerce operators are also flagging operational slowdowns. Eternal Ltd., the holding company of Blinkit, told analysts that construction restrictions during high-pollution periods delayed their store expansion plans.

Companies such as DLF and Omaxe have highlighted the impact of construction bans triggered under Delhi-NCR’s pollution control framework, leading to project delays and rising costs. Some developers estimate losing one to one-and-a-half months of construction time annually due to pollution-related curbs.

Cement and infrastructure firms have similarly warned that smog-related shutdowns are affecting dispatches and project timelines.