Marico boosts ad spends by 24.5% YoY to Rs 299 crore in Q1FY26

New Delhi: FMCG giant Marico has reported a 24.5% year-on-year rise in advertising expenditure. According to its exchange filings, the company spent Rs 299 crore on advertising in the quarter ended June 30, 2025, up from Rs 240 crore in the corresponding quarter last year.

On a sequential basis, the expenditure on advertisement and promotion witnessed a minor slip of 2%, with the spends amounting to Rs 305 crore in the quarter ending March 31, 2025. 

The revenue from operations for the Parachute parent came in at Rs 3,259 crore in Q1FY26, up 23.3% from Rs 2,643 crore in the corresponding quarter last fiscal year. On a sequential basis, the revenue rose 19.3% from Rs 2,730 crore in the quarter ending March 31, 2025. 

The company, while sharing the results, noted, “Gross margin contracted by 5.3% YoY as sharp inflation in key commodities continued to exert pressure, in addition to a particularly high base and the pricing-led denominator effect. 

Despite these constraints, A&P spend was up 25% YoY, as we maintained investments to adequately strengthen our franchises and accelerate diversification. Consequently, EBITDA was up 5%. EBITDA margin stood at 20.1%, down 3.6%. PAT was at Rs 504 crore, up 9% YoY.”

Commenting on the results, the FMCG major noted, “We expect to sustain positive volume and revenue growth momentum through the year, while driving resilient profit growth amidst heightened input cost pressures. We expect the impact of these unprecedented margin headwinds to peak out in the first half of this year and ease gradually thereafter.”

Saugata Gupta, MD & CEO, Marico, said, “The new fiscal has begun on a promising note for both our India and international businesses, with growth trends moving in a positive direction. The improving trajectory of our core portfolios, coupled with accelerated growth in foods and digital-first portfolio, has driven underlying volume growth in the India business closer to double digits. 

The new businesses continue to scale up ahead of our aspirations, reaffirming their differentiated long-term potential. The international business delivered a stellar quarter, and we remain confident of sustaining this performance in the quarters ahead.

Despite sharp inflationary headwinds in key commodities in the near term, we expect to maintain strong volume and revenue momentum, along with a resilient earnings performance, over the course of the full year.”

It is to be noted that Marico has called for a media pitch, with the mandate estimated at Rs 350-400 crore. Madison Media is the incumbent agency on the account. Madison has handled Marico’s media duties since 2003, barring a brief period in 2017 when the mandate was awarded to Lodestar UM. The account returned to Madison in 2019.