Hindustan Unilever (HUL), Dabur, Marico, and Godrej Consumer Products reported sequential declines in their Q4 FY26 ad budgets, signalling a cautious stance on discretionary spending.
HUL’s A&P outlay slipped marginally by 0.85% to INR 1,509-crore, though it was still 6% higher year-on-year. Dabur registered the steepest cut, trimming spends by 10% to INR 214.5-crore. Godrej Consumer reduced its advertising investments to INR 274.3-crore from INR 306-crore in the previous quarter, while Marico pared spends to INR 320-crore from INR 336-crore, despite a 5% annual increase to INR 1,300-crore.
Executives across these companies pointed to muted rural consumption, inflationary pressures on raw materials such as edible oils and packaging, and supply chain risks emanating from West Asia as key factors behind the pullback. Protecting profitability has taken precedence over aggressive brand-building, with firms adopting a more calibrated approach to advertising.
The slowdown is already being felt in the media ecosystem. Jio Platforms flagged pressure on television entertainment revenues, with FMCG advertising traditionally accounting for a significant share of TV and print revenues. Industry watchers note that traditional media is bearing the brunt of the cuts, while digital platforms are emerging as the preferred medium.
HUL has doubled its influencer ecosystem to 30,000 creators, while Marico now allocates 55% of its core ad spends to digital channels. Companies are also experimenting with AI-led campaigns to sharpen consumer engagement, particularly with younger demographics. Godrej Consumer continues to direct 90% of its A&P investments toward consumer-facing brands, albeit at lower overall levels.
Analysts expect FY27 to see disciplined spending patterns, with FMCG players balancing margin protection with targeted digital investments. Traditional media may continue to face headwinds, while digital-first strategies, influencer collaborations, and AI-driven campaigns are likely to define the next phase of FMCG advertising in India.