Marico bets big on brand building with 25% rise in ad expenses to Rs 299 cr in Q1 FY26 profit

FMCG giant Marico on Monday announced its Quarter 1 results for fiscal year 2026. The maker of the Parachute oil brand reported a 9% increase in its consolidated profit year-on-year, along with a 23% jump in revenue, driven by a 25% rise in advertisement and promotional expenditure during the quarter.

Marico's profit climbed from Rs 474 crore in Q1 FY2024 to Rs 513 crore in Q1 FY25. The company's revenue soared to Rs 3,259 crore in Q1 FY25 compared to Rs 2,643 crore in the corresponding quarter last fiscal.

Marico's international business revenue was 12% during the quarter amid high input costs and currency headwinds in select markets.

"The India business continued to post sequential improvement in underlying volume growth, driven by positive trends in the core franchises and accelerated scale-up of new businesses," Marico mentioned.

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Consolidated basis, Marico spent Rs 299 crore on ads and promotion in Q1 (April to June period) in FY2025 compared to Rs 240 crore in the same period last year as the company continued investments to strengthen franchises and accelerate diversification.

According to the company, Parachute registered 1% volume decline amid high input costs and pricing conditions due the quarter, but Marico has anticipated the prices will remain steady when market conditions will settle.

Meanwhile, value-added hair oils grew by 13% in Q1 FY25. " We expect a healthy growth momentum in the franchise as we gradually pivot investments from trade-led activations to brand-building initiatives and drive direct reach expansion," the FMCG company added,

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Marico's Saffola edible oil brand clocked a mid-single-digit volume growth amidst a relatively elevated pricing environment. The brand registered 28% revenue growth while passing on the benefits of the recent import duty reduction on vegetable oils to consumers.

Food segment witnessed 20% value growth YoY, while premium personal care continued its accelerated growth trajectory. "We aim to grow Foods at 25%+ CAGR to ~8x of FY20 revenues in FY27," Marico added

The FMCG sector has witnessed stable and improving demand trends over the past couple of years, and Marico has anticipated a gradual uptick in overall demand patterns in the upcoming quarters.

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Despite the input cost headwinds, Marico has expected a steady growth trajectory in core categories in the near-term.

"We will continue our focus on driving differential growth in our urban-centric and premium portfolios through the organized retail and e-commerce channels," the company added.