Cello World (CELLO) Q4 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 589 crore in Q4 FY25, up 15% year-over-year, with stable EBITDA and PAT margins at 26% and 16% respectively.

• FY25 revenue grew 7% year-over-year to INR 2,216 crore, with stable margins despite subdued consumer demand and global trade uncertainties.

• Strategic focus on portfolio rationalization, distribution shift towards e-commerce and quick commerce, and expansion into new product categories.

• Audited standalone and consolidated financial results for FY25 approved, showing strong revenue and profit growth.

• Final dividend of INR 1.50 per share (30% of face value) recommended for FY25, subject to AGM approval.

Financial highlights

• FY25 consolidated revenue: INR 2,13,638.83 lakhs, up from INR 2,00,026.41 lakhs in FY24; Q4 FY25 revenue: INR 589 crore.

• FY25 EBITDA: INR 555 crore (26% margin); PAT: INR 339 crore (16% margin); operating cash flow: INR 262 crore.

• FY25 PAT attributable to owners: INR 338.8 crore (15.9% margin), up 2% year-over-year.

• Net cash position as of March 2025 after full debt repayment; cash and cash equivalents at year-end: INR 51.7 crore.

• Board recommended final dividend of INR 1.50 per share (30% of face value).

Outlook and guidance

• FY26 revenue growth expected at 12%-15% overall, with consumer wear targeted at 17%-18%, Writing Instruments at 10%-12%, and furniture at 7%-8%.

• Glassware segment expected to reach INR 450-475 crore in FY26, exhausting 65%-70% of capacity.

• CapEx guidance for FY26 is INR 100 crore, including new steel bottle facility.

• EBITDA margin may see a percentage point hit due to glassware ramp-up, but break-even targeted for the year.

• Plans to phase out low-ROCE and low-margin products, introduce new high-potential offerings, and strengthen premium brand positioning.