Cello World (CELLO) Q4 25/26 earnings summary

Executive summary

• FY 2026 revenue reached INR 2,323.7 crore (up 8.8%-9% YoY), with EBITDA at INR 526.4 crore and PAT at INR 331.5 crore, despite softer demand in some consumerware categories and market headwinds.

• Q4 FY 2026 delivered record quarterly revenue of INR 654 crore, up 11% year-on-year, driven by Writing Instruments, export revival, and new premium launches.

• Strategic initiatives included product portfolio rationalization, distribution realignment, operational efficiency improvements, capacity expansion in glassware and steel bottles, and integration of Wim Plast and Cello Pens.

• Board recommended a final dividend of INR 1.50 per equity share for FY 2026, subject to shareholder approval.

• Approved Composite Scheme of Arrangement involving demerger and amalgamation with subsidiaries, effective April 1, 2025, sanctioned by NCLT on May 14, 2026.

Financial highlights

• FY 2026 consolidated revenue was INR 2,323.7 crore, EBITDA INR 526.4 crore (22.7% margin), PAT INR 331.5 crore (14.3% margin); Q4 FY 2026 revenue INR 654 crore, EBITDA INR 136.6 crore, PAT INR 90.1 crore.

• Gross margin for FY 2026 was 49.8%; EBITDA margin 22.7%; PAT margin 14.3%.

• EPS for FY 2026 was INR 14.70.

• Cash flow from operations for FY 2026 was INR 255.1 crore; CapEx was INR 219 crore.

• Working capital cycle improved to 154 days in FY 2026 from 178 days in FY 2025.

Outlook and guidance

• FY 2027 revenue growth expected at 10%-12%, with EBITDA margin targeted to improve by 2%-2.5% as steelware and glassware scale up.

• Strategic focus on innovation, distribution expansion, branding, and manufacturing capacity to drive future growth.

• Steel bottle production to reach full capacity by July, with peak revenue potential of INR 300 crore.

• Writing instruments segment targets INR 500+ crore revenue in FY 2027.

• Debtor days expected to reduce by 10-15 days, aiming for less than 100 days.