Cello World (CELLO) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 6% year-over-year to INR 529 crore, with record gross profit margin of 54%, led by consumerware growth, though overall demand recovery remains incomplete and writing instruments and furniture segments were subdued.

• EBITDA margin declined to 23.9% due to higher operational costs from the new glassware facility.

• Hydration category sales were impacted by early rains, while writing instruments faced export and domestic demand challenges.

• Focus remains on omnichannel expansion, premiumization, and stable margins, with a positive outlook for H2 FY26.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, with limited review by Deloitte Haskins & Sells LLP.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was INR 529 crore, up from INR 501 crore in Q1 FY25 (6% YoY), with gross profit at INR 286 crore (54% margin).

• EBITDA margin stood at 23.9%, with PAT attributable to owners at INR 73 crore (13.8% margin), and other income rose to INR 17.2 crore.

• Revenue mix: 69% consumerware, 14% writing instruments, 17% modular furniture and other products.

• Writing instruments delivered the highest gross profit margin at 59%, followed by consumerware at 56%.

• General trade contributed 75.8% of revenue, online 10.4%, modern trade 5.4%, and exports 8.4%.

Outlook and guidance

• Full-year revenue growth guidance is 12%-15%, with EBITDA margin expected around 23%.

• Margin stabilization expected as the new glassware facility ramps up, with festive season and new product launches anticipated to drive stronger growth.

• Writing instruments segment expected to see some recovery, especially in exports, as trade routes normalize.

• The company is pursuing a Composite Scheme of Arrangement with Wim Plast Limited and Cello Consumer Products Private Limited, pending NCLT approval.