Parle hikes ad budget to Rs 483 crore in FY25; profit falls 39%

FMCG major Parle Biscuits reported a sharp decline in profitability in fiscal year 2025 as rising raw material and operating costs weighed on margins, even as revenues posted steady growth.

The company’s revenue increased 7% year-on-year to Rs 16,191 crore in FY25, according to a report by The Economic Times. However, net profit fell sharply by 39% to Rs 980 crore compared to the previous fiscal year. Sales rose to Rs 15,568.5 crore from Rs 14,349 crore in FY24.

Parle’s margins came under pressure due to higher input costs, particularly wheat, sugar, and edible oil. Increased packaging expenses, along with higher fuel and logistics costs, further impacted profitability.

Operating in a highly price-sensitive segment, Parle faced limited headroom to pass on rising costs to consumers without risking volumes. As a result, higher sales failed to translate into stronger bottom-line growth during the year.

The company also stepped up its advertising and promotional spending, which rose 9% year-on-year to Rs 482.96 crore in FY25, compared to Rs 443 crore in FY24.