Cello World Limited has informed the Exchange about Transcript
CELLO · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Cello World reported Q1 FY26 revenue of INR 529 crores, up 6% year-on-year, with its highest-ever gross profit margin of 54% and EBITDA margin of 24%. PAT stood at INR 73 crores (14% margin). The Consumerware segment, which accounts for 69% of revenue, grew 12% YoY, driven by 50% growth in glassware. However, Writing Instruments declined to INR 74 crores (from INR 83 crores) due to weak export demand, and the furniture business remained subdued at INR 90 crores. Management guided for 12-15% revenue growth and ~23% EBITDA margin for FY26, down from 26% in FY25, citing margin pressure from glassware losses, higher energy and wage costs, inability to raise prices, and aggressive competition. The new glassware plant is at 65% efficiency (target 85%) and is expected to break even by year-end, with FY26 sales of INR 110-120 crores. Capex of ~INR 100-110 crores is planned, including INR 40-50 crores for a new steel flask facility starting November-December.
Margins are likely to face near-term headwinds as the glassware ramp-up and competitive pricing pressure weigh on profitability, though management expects 23% EBITDA margin to be the floor. The growth story remains intact with the festive season and July traction cited as positive signals, and the Wim Plast merger (swap ratio 0.86) is nearly complete. Investors should watch for margin recovery in FY27 as glassware efficiencies improve.