MAM
No turnaround in ad spends despite bullish market sentiment
MUMBAI: The business sentiment may have turned positive following a slew of FDI policies but advertisement spends are not going to change dramatically.
The festival season has already begun but the advertisement spends are not as anticipated. The slowdown in ad spends since the beginning of this year will see no recovery yet, experts said.
“This festive season is pretty in its run and the mood is not very great. The advertising spends are not up to the kind of
expectations, there is still a slowdown,” said Allied Media COO P M Balakrishnan.
He said as far as the reforms by the government are concerned, “it’s the steroid put in the economy to create the right sentiment.”
Officials at other media agencies too said that though the business climate is better than earlier months of this year, it’s not better than the same period of last year.
Echoes OMD India COO Harish Shriyan, “Festive season is always better. Most of the advertisers in any case are spending money and they will continue to do so but the level and kind of money they used to spend earlier is not the same this time. Though it is better than the previous few months I don’t think there is any kind of major reaction because of the policies and all. I doubt that advertising spend will increase in these (the remaining) months (of the year).”
Balakrishnan feels the advertising spends on television will continue to be moderate this year. “Slowdown is going on. It’s not that people are withdrawing but also they aren’t going over-board and gung-ho this season.”
According to GroupM’s revised forecast, the advertising expenditure on television is estimated to grow at 5.6 per cent to gross Rs 148.12 billion in calendar year 2012 against earlier estimate of a 12 per cent growth.
Havas Media CEO India and South Asia Anita Nayyar agreed that the growth in spends this season will be in the same range of five
to six per cent.
She noted that the festival season has now started to look up and it’s high time as Diwali is just a little more than a month away. “Earlier the season preparation would start almost two to two-and-a-half months in advance. It’s always nice for the advertising industry to grow and I hope that advertisers will now start seeing advertising budgets as investments rather than expenditures now that the sentiment is improving.”
SMG CEO Malli CR, however, feels that ad spends on television are ok. “It is not that the things are terribly down, there are quite few sectors where things are ok, and they may not be growing at an exponential rate. Sectors like telecom and consumer goods are advertising and FMCG is anyway continuing to advertise so it’s not that the economy has come to a standstill.”
“Some sectors like BFSI, automobile are probably not spending as much as they would have. FMCGs put together account for about more than 55 per cent TV advertising. Everybody is hoping that Diwali should lead to something better. People are spending on digital and other mediums, so it’s not a bleak scenario,” Malli added.
Brands
Sapphire Foods FY26 revenue rises to Rs 3,125 crore, posts loss
Q4 revenue at Rs 792 crore, FY26 loss at Rs 32 crore amid cost pressures.
MUMBAI: If growth is on the menu, profitability seems to have taken a brief detour. Sapphire Foods India reported a steady rise in topline for FY26, even as rising costs weighed on profitability. Revenue from operations grew to Rs 3,125 crore for the year ended March 31, 2026, up from Rs 2,882 crore in FY25. However, the company swung to a loss, reporting a net loss of Rs 32 crore for FY26, compared to a profit of Rs 17 crore in the previous year. Total income for the year stood at Rs 3,153 crore, while total expenses climbed to Rs 3,167 crore, reflecting pressure across key cost heads.
In the March quarter, revenue came in at Rs 792 crore, compared to Rs 711 crore in the same period last year. The company reported a quarterly net loss of Rs 13 crore, against a profit of Rs 2 crore a year earlier.
Cost pressures remained visible across operations. Material costs rose to Rs 995 crore for FY26, while employee expenses increased to Rs 428 crore. Other expenses, the largest component, stood at Rs 1,229 crore, underscoring the impact of store operations and expansion-related spends.
Depreciation and amortisation expenses also climbed to Rs 392 crore for the year, reflecting continued investments in store infrastructure and growth.
At the operating level, the company reported a loss before tax of Rs 37 crore for FY26, compared to a profit of Rs 23 crore in FY25. Exceptional items added Rs 24 crore to the cost burden during the year.
On the balance sheet, total assets rose to Rs 3,256 crore as of March 31, 2026, up from Rs 3,041 crore a year earlier, indicating ongoing expansion. Net worth stood at Rs 1,389 crore.
Despite profitability pressures, operating cash flow remained resilient at Rs 507 crore, highlighting underlying business strength and demand stability.
The numbers paint a familiar picture in the quick-service restaurant space, growth continues to be served hot, but margins are still finding their footing.
