P&G cuts ad spends by 17% on-quarter, revenue rises to Rs 1,262 crores

New Delhi: Procter & Gamble Hygiene and Health Care reduced its advertising and sales promotion expenses to Rs 145.48 crores in the quarter ended December 31, 2025, a sequential decline of nearly 17% from Rs 175.97 crores spent in the preceding quarter. 

Advertising spends also declined from Rs 158.34 crores incurred in the same quarter previous year.  Advertising and sales promotion expenses accounted for about 11.5% of revenue from operations during the quarter, lower than the proportion seen in the immediately preceding quarter. 

The reduction in AdEx came even as the company delivered higher revenue and sharply improved profitability, indicating tighter control on media and promotion spends alongside stable business momentum. 

The company reduced spends both on-quarter and on an annual basis, even as revenue and profits moved higher, pointing to stronger operating leverage and sharper prioritisation of media and promotion investments.

Despite the softer advertising push, revenue from operations rose to Rs 1,261.90 crores in the December 2025 quarter. This was higher than Rs 1,160.17 crores reported in the preceding quarter. Compared with Rs 1,247.03 crores recorded in the same quarter previous year, revenue also showed a steady annual increase. 

Total income for the quarter, including other income, stood at Rs 1,274.31 crores, up from Rs 1,180.07 crores in the previous quarter and Rs 1,257.34 crores in the corresponding quarter last year.

The revenue performance indicates that demand across P&G’s health and hygiene portfolio remained resilient, supported by brand strength, distribution reach, and execution, even as advertising spends were moderated.

After tax, profit was at Rs 301.46 crores, a sequential increase from Rs 209.88 crores in the September 2025 quarter. On an annual comparison, profit after tax was also higher than Rs 288.59 crores reported in the December 2024 quarter.

Total expenses during the quarter were Rs 872.27 crores. While costs related to raw and packing materials, employee benefits, and other operating expenses broadly tracked higher sales volumes, the sharp on-quarter reduction in advertising and sales promotion expenses played a key role in supporting margins. 

Earnings per share for the December 2025 quarter stood at Rs 92.87, up from Rs 64.85 in the preceding quarter and Rs 82.74 in the same quarter previous year, mirroring the improvement in profitability.

Procter & Gamble Hygiene and Health Care operates across health care products and hygiene products, including ointments, creams, cough drops, tablets, and feminine hygiene products. 

Commenting on the company’s performance and strategy, Kumar Venkatasubramanian, Managing Director, Procter & Gamble Hygiene and Health Care Ltd. shared, “We continued to invest to delight our consumers, reflecting in our stable performance. We remain committed to our integrated growth strategy, to drive balanced growth and value creation. 

This includes a focused product portfolio of daily use categories where performance drives brand choice, superiority (of product performance, packaging, brand communication, retail execution and consumer and customer value), productivity, constructive disruption, and an agile and accountable organization.”