P&G Health and Hygiene slashes ad spends 55% in Q1 FY26

For the quarter ended June 30, 2025, ad and sales promotion expenses stood at Rs 68.73 crore, down from Rs 153.66 crore in the corresponding quarter last year

by e4m Staff
Published: Jul 31, 2025 9:31 AM | 2 min read

Procter & Gamble Health and Hygiene started FY26 on a cautious note, cutting advertising and promotional spends by 55% year-on-year, even as its quarterly profit more than doubled.

For the quarter ended June 30, 2025, ad and sales promotion expenses stood at Rs 68.73 crore, down from Rs 153.66 crore in the corresponding quarter last year. The figure also marked a 43 percent decline from Rs 121.16 crore in the preceding March quarter.

This strategic pullback in marketing expenditure appears to have aided bottom-line growth. Net profit surged to Rs 192.06 crore, up 136.6 percent from Rs 81.06 crore in Q1 FY25. On a sequential basis, profit rose 23 percent over Rs 156.10 crore reported in Q4 FY25.

Revenue from operations came in at Rs 937.03 crore in Q1 FY26, largely flat when compared to Rs 931.75 crore in Q1 FY25, reflecting an increase of just 0.6 percent. Total income stood at Rs 944.72 crore, marginally up from Rs 939.06 crore in the year-ago quarter.

Other income also saw a modest rise to Rs 7.69 crore from Rs 7.31 crore a year ago.

Over the nine-month period ending March 2025, P&G Health and Hygiene spent Rs 452.44 crore on advertising and promotions. This suggests that the company’s current pullback in ad spends could be a short-term tactical move, possibly to rebalance costs after a high-investment phase.

During the same period, revenue from operations was Rs 3,374.42 crore, and net profit stood at Rs 636.59 crore.

Kumar Venkatasubramanian, Managing Director, Procter & Gamble Hygiene and Health Care Ltd, said the company remains focused on driving sustainable growth despite macroeconomic headwinds.

“Despite the continually challenging operating environment, our team came together to execute our integrated growth strategy. It was a focused product portfolio of daily use categories where performance drives brand choice, superiority of product performance, packaging, brand communication, retail execution, and consumer and customer value, along with productivity, constructive disruption, and an agile and accountable organization. We remain committed to this strategy, which is aimed at delivering sustainable, balanced growth and value creation” he said.