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Faced with stubborn input cost inflation, unpredictable rural demand, and price-sensitive urban consumption, India’s top FMCG companies took divergent approaches to advertising in FY25. While some leaned in aggressively to secure future growth, others trimmed budgets to protect margins.
As inflation remained elevated for key commodities like palm oil and tea and rural recovery stayed sluggish, brand-building was weighed carefully against cost-efficiency and bottom-line pressure.
Leading the narrative on ad spends was Marico, which significantly ramped up its advertising and promotional (A&P) investments to Rs 1,128 crore in FY25 from Rs 952 crore the previous year, an 18% increase. CEO Saugata Gupta acknowledged that had A&P been moderated in line with topline growth, margins would have been higher. Yet, the company stuck to its strategy. “A&P sets you up for future growth... We resisted the temptation to manage short-term margins by cutting A&P and sacrificing future growth,” he stated.
Dabur India marginally increased its ad budget to Rs 864.64 crore from Rs 849.06 crore. This uptick aligned with the company’s focus on expanding rural reach and scaling innovation across core categories like oral care, hair care, and healthcare. CEO Mohit Malhotra underlined that ad spend would remain an important pillar as Dabur looks to “modernise the core portfolio, drive premiumisation, and plug white spaces.”
Godrej Consumer Products (GCPL) followed a similar trajectory, increasing ad spends slightly to Rs 1,369.21 crore from Rs 1,335.89 crore. The company’s India and Indonesia businesses recorded volume growth despite margin headwinds from palm oil inflation. Household Insecticides, Laundry Liquids, and Air Fresheners were all supported with strong media investments, contributing to full-year organic volume growth of 4%.
In contrast, Hindustan Unilever (HUL), the country’s largest FMCG company, trimmed its ad spends to Rs 6,199 crore in FY25 from Rs 6,489 crore in FY24. The company attributed this move to margin pressures and a conscious attempt to balance investments in innovation and profitability, especially as urban demand moderated and rural recovery stayed uneven. CEO Rohit Jawa noted that commodity inflation remained mixed, with tea and palm oil showing price volatility, while some deflation was visible in crude and soda ash.
Britannia did not disclose a specific ad spend figure but highlighted robust investments behind flagship brands like Marie Gold and Good Day, while also launching premium SKUs such as Pure Magic Choco Frames and Winkin Cow Grow through e-commerce channels. The company used “distinctive promotions” and a stronger rural distribution footprint to sustain brand visibility, especially amid subdued demand and commodity cost pressures.
Nestlé India and Tata Consumer Products (TCP) did not publish detailed ad spend data, but both indicated ongoing investments in strategic initiatives. Nestlé leaned into rural market expansion with its “RUrban” strategy, enhancing village-level touchpoints and retail visibility. TCP similarly indicated sustained innovation and channel development as part of its brand investment focus.
These varied approaches underscore that companies used ad budgets not uniformly, but as levers tuned to portfolio strength, input cost volatility, and category demand elasticity.
Profits edge up amid cost pressures
Despite the patchy demand environment and rising media costs, most FMCG majors posted a modest uptick in net profits– a sign of operational efficiency and selective aggression in cost management.
HUL reported a net profit of Rs 10,671 crore in FY25, up from Rs 10,282 crore a year ago. Underlying sales grew 2%, but the company flagged a negative mix as a limiting factor. “We delivered a competitive performance, further strengthening our market leadership,” said Rohit Jawa, while pointing to structural shifts in portfolio, including the demerger of the ice cream business and acquisition of Minimalist.
Marico’s net profit rose to Rs 1,658 crore from Rs 1,502 crore, with the company maintaining near-20% operating margin despite rising input costs. Sustained investments in premium personal care and foods supported differential growth.
GCPL recorded a sharp turnaround, with net profit touching Rs 1,852.30 crore versus a loss of Rs 560.55 crore in FY24. Performance was aided by strong momentum in household care and personal care categories, particularly in Indonesia.
Dabur saw a slight dip in profits to Rs 1,740.42 crore from Rs 1,811.31 crore. However, strong international growth (17% in constant currency) helped cushion weak domestic demand. The company’s broader strategy included sharpening its rural GTM and investing in consumer-centric innovations.
Nestlé India reported a profit of Rs 3,207.5 crore, up from Rs 3,196.2 crore. With rural outreach touching over 208,000 villages, its RUrban strategy played a significant role in countering sluggish urban demand.
TCP’s profit inched up to Rs 1,380.31 crore from Rs 1,300.99 crore, while Britannia posted a profit of Rs 2,177.86 crore, up from Rs 2,134.22 crore. Britannia's cost efficiency program delivered 3% revenue savings, which, combined with strategic pricing, supported profitability.
Even amid global commodity disruptions and foreign exchange volatility, most brands were able to hold their ground by adapting spending, pricing, and innovation levers with agility.
Key levers for FY26: Premiumisation, rural push and innovation
Most FMCG majors expect FY26 to be more favourable, with rural demand showing signs of life, agricultural output projected to improve, and inflation cooling in several input categories. However, the playbook is still one of cautious optimism.
HUL expects the first half of FY26 to outperform the latter part of FY25, driven by monetary stimulus, tax relief, and easing food and crude inflation. Still, volatility in the global commodities market and rupee depreciation will require careful monitoring. “Gross margin is expected to moderate further due to commodity inflation and our continued commitment to provide consumers with the right price value equation,” said Jawa.
Marico and Dabur are banking on improving sentiment across both urban and rural segments. While Marico focuses on revenue mix reshaping and premium category growth, Dabur is deepening its rural footprint and accelerating modernisation of its legacy portfolio.
Nestlé’s RUrban thrust, Britannia’s expansion to 29 lakh outlets, and GCPL’s volume-led strategy all point to a focus on last-mile access and stronger category relevance. Innovation and channel diversification — including e-commerce and modern trade — are expected to play pivotal roles.
As companies look to strike a balance between sustaining brand equity and protecting margins, FY26 will likely see a continued divergence in ad strategies.
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