HUL, Dabur, GCPL ramp up marketing as GST reshuffle sparks consumption push

FMCG majors ramped up their advertising and marketing expenditure in the second quarter of FY26, aided by the government’s overhaul of the GST structure that lowered prices across several consumer categories.

According to quarterly earnings disclosures, Hindustan Unilever Ltd (HUL) spent Rs 1,661 crore on advertising and promotions in Q2 FY26—higher both sequentially and annually.

HUL’s ad spends were Rs 1,656 crore in Q1 FY26 and Rs 1,501 crore in Q2 FY25. So far, the maker of Surf Excel, Dove and Knorr has spent Rs 3,317 crore on brand-building in H1 FY26, up 4.24% YoY from Rs 3,182 crore.

Godrej Consumer Products Ltd (GCPL) increased its Q2 FY26 ad spend 3.2% YoY to Rs 375.74 crore, compared to Rs 363.95 crore in Q1 FY25. In Q1 FY26, GCPL’s promotional spending stood at Rs 313.83 crore.

Dabur India Ltd raised its advertising budget by 3.5% YoY and 15% sequentially in Q2 FY26, spending Rs 233.57 crore—up from Rs 225.63 crore in Q2 FY25 and Rs 201.96 crore in Q1 FY26.

Patanjali Foods also marginally increased its Q2 FY26 advertising and promotional spends, though it did not disclose absolute figures. The company said ads accounted for 2% of revenue in Q2 FY26 versus 0.72% in Q1 FY26.

Industry watchers say the GST Council’s move to introduce a simplified two-tier 5% and 18% structure, effective September 22, has set the stage for consumption-led ad growth.

Research firm MediaPro projects that price cuts by FMCG companies could fuel a 3–5% increase in TV ad spends by late 2025, and 6–10% growth on a 2026 run-rate basis.

The revised GST slabs have made several staples more affordable. UHT milk, paneer (chena), and all varieties of Indian bread have shifted from 5% GST to zero tax, while hair oil, soaps, shampoos, bicycles, toothbrushes, tableware, and popular packaged foods such as namkeen, pasta, instant noodles, coffee, cornflakes, butter, and ghee now fall under the 5% slab.