Cello World (CELLO) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue rose 7.8% YoY to ₹633.2 crore; EBITDA fell 4% to ₹135 crore and PAT fell 10% to ₹81.9 crore amid input-cost pressure and competition.

• H1 FY27 revenue increased 3.9% to ₹1,159.9 crore, while EBITDA declined 6% and PAT declined 10% YoY.

Financial highlights

• Q2 revenue from operations was ₹633.2 crore versus ₹587.4 crore; gross profit rose 9% YoY to ₹318.1 crore.

• Q2 EBITDA was ₹135 crore, down 4% YoY; EBIT declined 9% to ₹110.9 crore.

• Q2 consolidated PAT was ₹8,191.19 lakh versus ₹9,132.75 lakh; EPS was ₹3.63 versus ₹4.05.

• H1 gross profit was ₹594.2 crore; EBITDA was ₹252.2 crore and PAT ₹155.3 crore.

Outlook and guidance

• FY27 revenue growth is expected at ~10% YoY; management sees potential for 17%-18% growth next year if momentum holds.

• Festive and institutional gifting demand shifted from Q2 to Q3; H2 is seasonally stronger, and October demand was good.

• Rajasthan steel-bottle production is expected to scale through H2 FY27, with gradual SKU expansion; management expects performance to improve over coming quarters.

• Margin guidance was withheld; improvement is expected as steel operations gain efficiency, gas costs ease and Cello Pens margins improve.

• Working-capital reduction is targeted over coming quarters, with a 10-15 day overall cycle as an objective.