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Do I need to get my parents schengen visa cancelled before the trip starts? If yes then, will the embassy also revoke my visa too because it was issued on the ground that we will be traveling together?
While the officers at next applications may look at former visa and whether you used them, they do understand that plans can change and will most likely completely ignore it.
Not necessarily. You don’t have to cancel the visa and it won’t affect your future travel for you or your parents as the visa wasn’t used incorrectly.
A Schengen visa can be revoked. From the Schengen Visa Code:
A visa shall be revoked where it becomes evident that the conditions for issuing it are no longer met. A visa shall in principle be revoked by the competent authorities of the Member State which issued it.
Your visa was issued on the basis of your father sponsoring your application. Due to that you could be denied entry if your father isn’t travelling. Make sure you can demonstrate adequate proof of funds.
Are there any other repercussions of my parents not going that may affect any future visa applications?
No, as the visa wasn’t used incorrectly and if you provide a reason for not using it if questioned you should be fine.
What is process of getting the visa cancelled, if needed? Do i need to visit embassy or an Email would suffice?
How to cancel multi-entry Schengen visa?:
You should contact the consulate of the country that issued your visa and ask them to cancel it. Make sure they put a "cancelled without prejudice" stamp. If they do, you shouldn't have problems getting Schengen visas in the future.
If you want to cancel the visa an email to the embassy you applied at with necessary proof and reason for cancellation will suffice.