Dabur cuts ad spend by 14% in Q1, posts 3% rise in profit

Dabur India reported a 3% increase in net profit to ₹514 crore for the first quarter of FY26, up from ₹500 crore in the same period last year. Revenue also rose slightly by 2% to ₹3,405 crore, but what stood out was a sharp 14% drop in advertising and marketing expenses.

The company’s  ad spends reduced  by 14.4% year-on-year to ₹201.96 crore, down from ₹235.89 crore in Q1 FY25. However, on a sequential basis, ad spends rose 14.5% from ₹176.36 crore in Q4 FY25. The company's ad-to-revenue ratio stood at 15.68%, up from 12.57% in the same quarter last year.

CEO Mohit Malhotra said the cut in spending was a strategic move. “We’ve become sharper with our marketing investments. Despite lower spends, we focused on expanding rural reach and using digital and modern trade channels more efficiently,” he said.

Though unseasonal rains impacted sales of summer-focused products like beverages, Dabur saw good growth in other categories. Juices under Real Activ grew by 20%, toothpaste by 7.3%, and home care by over 10%.

Dabur’s rural push also continues to show results, with direct distribution reaching 1.52 million outlets and village coverage expanding to 1.33 lakh villages.

In its international markets, the company posted a 13.7% growth in constant currency, led by strong gains in the UK, Turkey, and Africa.