Cello World LimitedConsumer GoodsCELLO
Q1 FY27 concall · earnings callCello World Limited
Revenue was soft at Rs 527 crores due to weak consumer demand and steel bottle stock-outs, but margins held up due to price increases, with the Writing Instrument segment growing 52% and e-commerce rising to 16.3% of sales.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹526.7 Cr | — | |
| EBITDA Margin | 22.2% | — | |
| PAT Margin | 13.9% | — | |
| Gross Margin | 52.4% | — | |
| Writing Instrument Growth | 52% | — | |
| E-commerce Contribution | 16.3% | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹556.85 Cr+5.7% YoY+13.6% QoQ | ₹92.50 Cr+2% YoY+6.6% QoQ | ₹3.99-0.2% YoY+8.1% QoQ |
| Q2 FY25 | ₹490.06 Cr+0.2% YoY-2.1% QoQ | ₹86.79 Cr+0.2% YoY-2.6% QoQ | ₹3.69-2.1% YoY-5.1% QoQ |
| Q1 FY25 | ₹500.66 Cr— YoY-2.3% QoQ | ₹89.12 Cr— YoY-7.3% QoQ | ₹3.89— YoY-6.9% QoQ |
| Q4 FY24 | ₹512.47 Cr— YoY-2.8% QoQ | ₹96.12 Cr— YoY+6% QoQ | ₹4.18— YoY+4.5% QoQ |
| Q3 FY24 | ₹527.06 Cr— YoY+7.8% QoQ | ₹90.66 Cr— YoY+4.7% QoQ | ₹4.00— YoY+6.1% QoQ |
TL;DR
- Revenue of Rs 527 crores reflects a weak demand environment.
- EBITDA margin at 22.2% and PAT margin at 13.9% were maintained.
- Consumer Ware (63.6% of revenue) was muted due to steel bottle stock-outs and subdued discretionary spending.
- Writing Instruments grew 52% year-on-year driven by the Cello brand.
- E-commerce channel contribution increased to 16.3% of revenue.
- Gross margin improved sequentially to 52.4% supported by price hikes of 7% to 20%.
Said on the call
“In response to the rising input cost environment, we implemented price increases across most of our product categories. These price revisions enabled us to fetch better gross margins in a weak demand environment.”
From the Q&A
| Topic | What management said |
|---|---|
| Glassware Business & China Dumping | Management said capacity utilization is 60% and ramp-up has been slower than anticipated due to continued dumping from China. Sales grew 30%-35% over Q1 last year and peak revenue from the plant is expected to be Rs 250-275 crores. |
| Steel Bottle Manufacturing Ramp-up | The in-house steel bottle plant has 8 lines operational but is producing only 20 SKUs versus 150 previously. It will take a couple of quarters to ramp up to 50-55 key SKUs. Peak revenue from the current 8 lines is estimated at Rs 300 crores. |
| Price Hikes and Volume Impact | Price increases of 7% to 20% were implemented across most categories to counter input cost inflation, which led to a volume drop in the quarter. Management believes prices have now been absorbed by the market. |
| Molded Furniture Outlook | Management does not expect significant growth in Molded Furniture, stating it is a heavily crowded segment. The focus is on preserving current revenue and profitability, not driving future growth. |
| Consumer Ware Segment Performance | Excluding steel bottles, the Consumer Ware segment saw a modest 4%-5% growth. The steel bottle category saw a substantial degrowth due to stock-outs, dragging down the overall segment. |
| Gross Margin Outlook | Gross margin for Consumer Ware is expected to remain in a band of 54%-55%, with 1-2 percentage point variations due to product mix changes, not sharp deviations. |
| Cello Pen Integration | The Cello brand contributed to Writing Instrument growth, but gross margin contracted as the company rationalized unprofitable products. Margins are expected to improve to Unomax brand levels in the next couple of quarters. |
| Guidance Avoidance | Management declined to give any guidance for FY27 growth and margins, calling it a tough year, and said they would be in a better position to guide next quarter. |
Guidance
- No specific numerical guidance was provided for FY27 growth or margins.
- Steel bottle plant ramp-up to 50-55 SKUs expected over the next couple of quarters.
- Glassware sales expected to show healthy growth for the full year, similar to the 30%-35% growth seen in Q1.
- Channel inventory has corrected and is now at a comfortable level, which should support better momentum in coming quarters.
- CAPEX for FY27 will be minimal, mainly maintenance, with potential addition of a few steel lines to be commissioned early next year.
- Marketing spend is maintained at 2.5% to 3% of overall revenues.
Source
Summary written from the transcript filed by Cello World Limited for the call held on 10 Aug 2026; published 18 Aug 2026, 19:05 IST.
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