Homegrown advertising group R K Swamy Ltd is betting on its integrated marketing model to drive growth over the next few years, combining media, creative and other advertising services even as the ‘Big Four’ agency networks increasingly separate those businesses.
“We never did disaggregated media and creative [although] that was an option 20 years ago,” Shekhar Swamy, MD and group CEO of R K Swamy Ltd told Mint in an interview.
“How can you disaggregate the two? The media function holds a lot of data, and then when media and creative walk separately, it creates a lot of tension. This is not a sensible model for a client.”
R K Swamy’s clients include Magicbricks, Polycab, and several government institutions and PSUs such as LIC.
The company reported a 15% jump in annual revenue for FY26 to ₹351.73 crore, while profit before tax and exceptional items rose 30% year-on-year to ₹32.2 crore. Profit after tax, however, took a one-time hit due to the Labour Code.
Global agency networks including Omnicom and Interpublic Group, which recently concluded a $13.5 billion merger, have long separated media buying, planning and technical services from creative and strategy functions into different network agencies.
Last year, Omnicom grouped its creative agencies under the Omnicom Advertising Group, while rival WPP rebranded its media agencies into a single entity called WPP Media.
Value chain
R K Swamy is now leaning further into branding and marketing consulting to stay ahead of rivals and deepen client relationships.
The company is targeting 20–30 consulting projects annually, though Swamy declined to specify the current client count for the vertical.
He added that the business could also help differentiate R K Swamy as the industry grapples with disruption from AI and automation in areas such as programmatic campaign planning and copywriting.
“We are not competing with any other traditional consulting companies [in this],” Swamy said.
“A combination of brand, brand management, brand conceptual thinking at one level, plus creative content where we use words and images to express those brand ideas, and requirement of data and analytics to drive and understand the potential in any space we choose to engage in, and the ability to go talk to consumers from a farmer in Bihar to a HNI real estate owner in Mumbai – this is not easy to find.”
AI push
R K Swamy is also expanding capacity even as companies turn cautious on advertising spends amid global uncertainty.
The company is investing in a digital studio in Mumbai and expanding capacity at its customer experience centre in Navi Mumbai this year.
The group is also investing “double digit crores” in AI capabilities, including external tools and in-house systems, Rajeev Newar, group CFO said.
The company’s headcount increased 10–15% in FY26.
Swamy said there is ample talent available in the market seeking a “stable environment” as agencies within the Big Four networks face layoffs and stalled wage growth due to AI disruption and merger-related restructuring.
Already, Omnicom shut several creative agencies last year, including iconic names such as DDB, FCB and MullenLowe.
Ad slowdown
Despite the expansion plans, R K Swamy’s shares have significantly underperformed the benchmark Nifty 500 over the past year.
The company’s shares are down more than 50% over the last 12 months, while the benchmark index has declined only marginally.
At the same time, companies are turning more cautious on advertising expenditure as the West Asia war and resulting inflationary pressures weaken consumer demand and cloud the business outlook.
The IPL, widely regarded as India’s marquee advertising event, saw only a 2% year-on-year increase in ad volumes after 48 matches, according to data from industry body TAM Media Research.
Growth outlook
“Indian advertising is expected to grow 10.5% in 2026 to reach ₹1.66 trillion,” a media and entertainment industry report by industry body FICCI and consulting firm EY said earlier this year.
“Till 2028, advertising is expected to grow at a healthy 8.7% CAGR,” the report said, adding that gains from GST rate cuts in September could boost consumption.
However, the prolonged war situation, rising crude oil prices and increases in domestic fuel and food prices are likely to dampen growth and weigh on advertising spends.
