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Mixed Ad Spend Trends in FMCG as Profits Show Divergence in Q1FY26

While Hindustan Unilever and Dabur trim ad spends year-on-year, Marico boosts marketing budgets; profit growth remains uneven across leading players.

MM Desk by MM Desk
August 8, 2025
in Advertising
A A
Mixed Ad Spend Trends in FMCG as Profits Show Divergence in Q1FY26 Brands: Hindustan Unilever, Dabur India, Marico, Colgate-Palmolive India, Godrej Consumer Products, Surf Excel, Dove, Lakme, Brooke Bond, Kwality Wall’s, Parachute, Saffola, Livon, Set Wet, Hair & Care, Dabur Chyawanprash, Dabur Honey, Odonil, Real, Good Knight, Cinthol, HIT, Godrej Expert

Known to be the backbone of Indian advertising, the Fast-Moving Consumer Goods (FMCG) segment, which comprises majors like Hindustan Unilever, Godrej Consumer Products, Dabur India, Colgate-Palmolive India, and Marico, reported a mixed performance in the first quarter of FY26.

Compared to the same quarter last year (Q1FY25), some companies opted to tighten their advertising budgets, while others invested aggressively in marketing to drive volumes and brand visibility. On a sequential basis, a few players recorded a notable uptick in ad spends versus Q4FY25, underscoring renewed promotional activity ahead of the festive build-up.

Hindustan Unilever

In Q1FY26, the maker of Surf Excel, Dove, Lakme, Brooke Bond, and Kwality Wall’s spent Rs 1,656 crore on advertising and promotion, down 1.48% from Rs 1,681 crore in Q1FY25, but higher than the Rs 1,510 crore spent in Q4FY25. Consolidated net profit stood at Rs 2,768 crore, up 5.97% from Rs 2,612 crore a year ago.

Marico

The FMCG major behind Parachute, Saffola, Livon, Set Wet, and Hair & Care increased its advertising and sales promotion spend to Rs 299 crore in Q1FY26 from Rs 240 crore in Q1FY25, marking a 24.58% rise. Consolidated net profit grew to Rs 504 crore from Rs 464 crore in the same quarter last year, an increase of 8.62%.

Dabur India

Owner of Dabur Chyawanprash, Dabur Honey, Odonil, and Real reduced its advertising and publicity expenditure to Rs 201.96 crore in Q1FY26 from Rs 235.89 crore in Q1FY25, a 14.38% drop. Sequentially, spends were up from Rs 176.40 crore in Q4FY25. The company posted a net profit of Rs 494.35 crore, down 2.7% from Rs 508.29 crore a year earlier, but up 58.1% over the preceding quarter’s Rs 312.73 crore.

Colgate-Palmolive India

In Q1FY26, the oral care leader spent Rs 188.41 crore on advertising, a 5.34% decline from Rs 199.07 crore in Q1FY25, but up from Rs 180.57 crore in Q4FY25. Net profit stood at Rs 320.62 crore, down 11.94% from Rs 364 crore in the same quarter last year.

Godrej Consumer Products

The maker of Good Knight, Cinthol, HIT, and Godrej Expert spent Rs 313.83 crore on advertising and publicity in Q1FY26, down 5.13% from Rs 330.82 crore in Q1FY25. Consolidated net profit rose marginally to Rs 452.45 crore from Rs 450.69 crore a year earlier.

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