FMCG ad spends show mixed trends in Q1 FY26

New Delhi: India’s FMCG sector saw a mixed approach to advertising investments in the June quarter of FY2026, with market leader Hindustan Unilever (HUL) retaining its top spender status despite a marginal year-on-year cut, and Marico posting the steepest growth. 

While companies like Dabur, GCPL, Emami and Colgate-Palmolive tightened budgets compared to last year, others, including Gillette India, significantly ramped up spends. 

The divergence comes against a backdrop of unseasonal rains, a shortened summer and inflationary pressures, even as sequential demand recovery in urban markets encouraged selective increases to protect share of voice and push digital-first strategies.

Hindustan Unilever (HUL) retained its position as the top advertiser in the FMCG sector during the first quarter of FY2026, despite marginally reducing its advertising and promotions (A&P) spend year-on-year.
HUL spent Rs 1,656 crore in Q1 FY26, down 1.48% from Rs 1,681 crore in the same quarter last year, but up 9.7% from Rs 1,510 crore in Q4 FY25.

Marico reported the sharpest growth, increasing its ad spends by 25% year-on-year to Rs 299 crore in the June quarter.

Other FMCG majors, including Dabur, Emami, Godrej Consumer Products (GCPL) and Colgate-Palmolive, reduced their ad spends compared to last year. 

However, Dabur and Colgate-Palmolive both increased their spending sequentially from the March quarter.

Procter & Gamble Hygiene and Health Care (P&G H&H) recorded the steepest drop, slashing ad spends by 55% YoY to Rs 68.73 crore from Rs 153.66 crore in Q1 FY25. This was also sharply lower than the Rs 121.16 crore spent in Q4 FY25.

In contrast, Gillette India increased its advertising and promotions budget by 19.6% YoY to Rs 136.37 crore. On a sequential basis, the company’s spend rose 25% from Rs 109.16 crore in the March quarter.
Historically, the FMCG category accounts for roughly one-third of India’s total annual advertising spends, and top media agency forecasts indicate the sector will continue to be the main growth driver for adex in FY2026.

Details of adex of India's top FMCG companies in Q1 FY2026

(figures in Rs crore)

Procter & Gamble Hygiene and Health Care's adex reduced by 55% to Rs 68.73 crore in the June quarter. It spent Rs 153.66 crore in the corresponding quarter of the previous year. In the previous quarter, the company spent Rs 121.16 crore on advertising and promotions.

Gillette India reported a 19.6% increase in advertising and promotions expenses to Rs 136.37 crore in the June quarter vs Rs 114.25 crore in the corresponding quarter of the previous year. On a QoQ basis, the company's adex increased by 25% as it allocated Rs 109.16 crore in the March quarter.

With commodity prices stabilising, FMCG companies are calibrating budgets to protect margins while maintaining share of voice. Many are shifting incremental allocations towards digital and omnichannel activations, partially replacing traditional TV-heavy spends.

Tata Consumer Products Managing Director Sunil D’Souza recently reaffirmed the company’s commitment to advertising investments, stating, “We have maintained our A&P-to-sales in the 7% range. In the short to medium term, we would like to go closer to 7.58%.”

Britannia Industries Executive Vice-Chairman, Managing Director and CEO Varun Berry echoed a similar stance, saying the company will continue to invest in brand building and product innovations to sustain growth and market leadership.

HUL has already stepped up its digital focus, with 40% of its ad spend now directed to digital media, Chairman Nitin Paranjpe told shareholders at the company’s 92nd Annual General Meeting.

Fast-moving consumer goods (FMCG) makers are expecting their topline growth to be impacted in the June quarter due to headwinds like unseasonal rains, a brief summer span and inflation pressure on key inputs.

However, the FMCG industry witnessed a sequential recovery in demand during the quarter, with an uptick in volume growth, particularly in urban markets.

Margins of FMCG majors such as Marico, Dabur, and Godrej Consumer remained below the normative level, and they expect a low-single-digit volume growth in the April-June period.