Cello World (CELLO) investor relations material

Executive summary

• Q1 FY27 revenue reached INR 527 crore (₹54,480.99 lakhs), with EBITDA margin at 22.2% and PAT margin at 13.9%, despite subdued demand and elevated input costs.

• Price increases across product categories improved gross margins amid weak demand.

• Writing Instruments saw 52% year-on-year growth, aided by Cello Pens, while consumerware and moulded furniture faced muted performance due to subdued demand and steel bottle inventory constraints.

• In-house manufacturing of steel bottles commenced, with eight lines operational and further scale-up expected.

• Focus remains on operational efficiency, product portfolio rationalization, market expansion, and working capital control.

Financial highlights

• Gross margin for Q1 FY27 was 52.4%, a sequential improvement, though down from 54.0% in Q1 FY26.

• EBITDA stood at INR 117.1 crore (22.2% margin); PAT at INR 73.4 crore (13.9% margin); EPS for Q1 FY27 was ₹3.25.

• Consumerware contributed 63.6%-69% of revenue, Writing Instruments 16%-21.2%, and moulded furniture 15%-15.2%.

• Online channel sales increased from 10.4% to 16.3% year-over-year.

• Consolidated profit after tax for Q1 FY27 was ₹7,340.22 lakhs, down from ₹8,065.09 lakhs in Q1 FY26.

Outlook and guidance

• Management expects gradual recovery and progressive improvement as operational efficiencies and in-house manufacturing scale up.

• Focus on balance sheet health and robust operating structure.

• No formal guidance provided for FY27; management is optimistic for improvement in coming quarters.