Marico Raises the Stakes with a 25 Percent Surge in Ad Spend for Q1 FY26

Marico has kicked off FY26 on a high note, significantly ramping up its marketing efforts and showing no signs of slowing down. In its Q1 earnings report, the FMCG major revealed a 25 percent year-on-year increase in advertising and sales promotion expenses, with spending rising from Rs 240 crore in Q1 FY25 to Rs 299 crore in Q1 FY26. This jump highlights a clear strategic intent: to double down on visibility, consumer trust, and growth across both legacy and new business segments.

Despite being marginally lower than the previous quarter’s Rs 305 crore, this spike in ad spend reflects Marico’s renewed focus on reinforcing its brand presence in a highly competitive landscape. The company has made it clear that it is investing in building deeper consumer engagement, strengthening its core franchises, and creating momentum for new product lines.

At the heart of this strategy lies Marico’s ambition to maintain its leadership in key categories like haircare, cooking oils, and skincare, while also nurturing high-potential verticals in wellness, premium personal care, and digital-first brands. By elevating its marketing muscle, Marico is aiming to stay ahead of evolving consumer expectations and industry trends.

The aggressive marketing approach seems to be paying off. The company posted a robust 23 percent increase in consolidated revenue for Q1 FY26, reaching Rs 3,259 crore compared to Rs 2,643 crore in the same quarter last year. Net profit rose to Rs 513 crore, reflecting an 8.2 percent growth from the Rs 474 crore reported in Q1 FY25. These results show that even with rising input costs and margin pressures, Marico is managing to strike a balance between brand investment and bottom-line performance.

However, the quarter was not without its challenges. Marico’s gross margin contracted by 5.3 percent year-on-year due to sharp inflation in key commodities. This also came on the back of a particularly high base and a pricing-led denominator effect. As a result, the EBITDA margin dipped slightly to 20.1 percent, but EBITDA itself was still up by 5 percent. Profit after tax stood at Rs 504 crore, marking a 9 percent increase from the same period last year.

Marico’s Q1 results reflect more than just financial health. They signal an evolving approach to growth   one that combines innovation, advertising power, and category expansion. The brand’s continued commitment to meaningful marketing spends, even amid inflationary pressures, indicates its long-term view of market leadership.

As consumer preferences shift toward health, value, and digital-first experiences, Marico’s willingness to invest in storytelling, brand purpose, and visibility may prove to be its biggest strength. With brands like Saffola and Parachute continuing to dominate, and newer entries gaining momentum, the company’s Q1 performance offers a strong foundation for the quarters ahead.

For marketers and industry watchers, Marico’s playbook this quarter serves as a valuable case study in how advertising remains one of the most important levers for scaling impact in a fast-moving consumer environment.

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