Earnings Call Transcript

Cello World reported Q1 FY26 revenue of INR 529 crores, up 6% year-on-year but missing expectations, with EBITDA margin falling sharply to 24% from 28% YoY (a 525 bps decline). Consumerware grew 12% YoY led by 50% growth in glassware, while Writing Instruments declined to INR 74 crores (from INR 83 crores) due to weak export demand, and Furniture remained subdued at INR 90 crores. Management guided full-year FY26 revenue growth of 12-15% and EBITDA margin of ~23% (down from 26% in FY25), citing margin pressure from higher energy costs, wage increases, inability to raise prices, and increased sales promotion spend. The new glassware plant contributed INR 15-16 crores in Q1 at 65% efficiency, with full-year revenue expected at INR 110-120 crores. Capex for FY26 is pegged at ~INR 100 crores, including INR 40-50 crores for a new steel flask facility starting November-December. The merger with subsidiary Wim Plast is nearly complete with a swap ratio of 0.86.