CELLO - Cello World
📢 Recent Corporate Announcements
Cello World reported Q3 FY26 revenues of ₹553.7 crores with an EBITDA margin of 22.1%, impacted by a one-time ₹7.4 crore gratuity charge. The Consumerware segment faced a significant 40% QoQ decline in steel revenues due to supply-driven stockouts, which the company is addressing through a new integrated plant in Rajasthan. The Writing Instruments segment remained a bright spot, growing 11% YoY to ₹86 crores, with management targeting ₹500+ crores for the segment in FY27. Overall, the company expects 8-10% growth as steel and glassware operations normalize over the next two quarters.
- Reported Q3 FY26 revenue of ₹553.7 crores and PAT of ₹63.6 crores (11.5% margin).
- Insulated steel revenues saw a 40% QoQ decline due to production constraints and stockouts.
- Writing Instruments segment grew 11% YoY; management targets ₹1,000 crore revenue for this segment within 2 years.
- Commissioned a new state-of-the-art insulated steel bottle manufacturing plant in Rajasthan to resolve supply issues.
- Molded furniture revenue declined 10.6% YoY due to weak polymer prices and absence of government orders.
Cello World Limited reported a weak performance for Q3 FY26, with consolidated revenue declining 1% YoY to ₹553.7 crore. Profitability was significantly impacted as EBITDA margins contracted by 300 bps to 22.1%, and PAT attributable to owners fell 26% YoY to ₹63.6 crore. While the writing instruments segment grew by 11%, the consumerware segment was muted due to steel supply constraints, and moulded furniture declined due to falling prices. For the 9M FY26 period, revenue grew 8% YoY to ₹1,670.1 crore, though PAT remains down 11% compared to the previous year.
- Q3 FY26 Revenue stood at ₹553.7 crore, down 1% YoY from ₹556.8 crore.
- EBITDA margins compressed to 22.1% in Q3 FY26 compared to 25.1% in Q3 FY25.
- Net Profit (Attributable to Owners) declined 26% YoY to ₹63.6 crore from ₹86.4 crore.
- Writing instruments segment delivered 11% growth, contrasting with declines in other core segments.
- In-house manufacturing accounted for 73% of total revenues during 9M FY26.
Cello World reported a weak Q3 FY26 with consolidated revenue declining 1% YoY to ₹553.7 crore, primarily due to supply constraints in the steel category and falling prices in moulded furniture. Profit After Tax (PAT) saw a sharp decline of 26% YoY to ₹63.6 crore, further impacted by a ₹7.4 crore exceptional item related to labor law changes and gratuity liabilities. While the Writing Instruments segment showed resilience with 11% growth, the overall EBITDA margin contracted significantly to 22.1% from 25.1% in the year-ago period. The company is undergoing internal restructuring, including a ₹600 crore capital infusion and loan-to-equity conversion for its subsidiary, CCPL.
- Q3 FY26 Revenue stood at ₹553.7 crore, a slight decline of 1% YoY, while 9M FY26 revenue grew 8% to ₹1,670.1 crore.
- Consolidated PAT for the quarter fell 26% YoY to ₹63.6 crore, with margins dropping from 15.5% to 11.5%.
- EBITDA margins contracted by 300 bps YoY to 22.1% due to mixed demand and segment-specific headwinds.
- Writing Instruments segment grew 11% YoY to ₹85.9 crore, whereas Moulded Furniture declined 11% to ₹83.3 crore.
- Board approved converting ₹500 crore inter-company loans into equity and a fresh ₹100 crore capital infusion into Cello Consumerware Private Limited.
Cello World Limited has approved a ₹600 crore capital restructuring for its wholly-owned subsidiary, Cello Consumerware Private Limited (CCPL). This includes converting a ₹500 crore existing inter-company loan into equity and a fresh cash infusion of ₹100 crore. The capital is being deployed to scale up a manufacturing unit in Falna, Rajasthan, specifically for steel and glass consumerware products. CCPL's turnover has grown from ₹0.40 crore in FY24 to ₹18.95 crore in FY25, indicating a significant ramp-up phase.
- Conversion of ₹500 crore existing inter-company loan into equity shares of CCPL.
- Fresh cash infusion of ₹100 crore for CAPEX, working capital, and business funding.
- Investment supports the manufacturing facility at Falna, Rajasthan, for steel and glass products.
- CCPL revenue increased from ₹0.40 crore in FY24 to ₹18.95 crore in FY25.
- Restructuring is expected to be completed within a three-month timeline.
Cello World reported a weak Q3 FY26 with consolidated revenue remaining largely flat at ₹553.7 crore compared to ₹556.8 crore in the same quarter last year. Net profit saw a sharp decline of 24.6% YoY to ₹69.4 crore, impacted by higher operating expenses and an exceptional item of ₹7.4 crore related to new Labour Code provisions. For the nine-month period, while revenue grew by 7.9% to ₹1,670.1 crore, PAT fell significantly from ₹268.4 crore to ₹201.4 crore. Additionally, the company announced a ₹600 crore capital restructuring in its subsidiary CCPL, involving loan conversion and fresh equity infusion.
- Consolidated Revenue for Q3 FY26 stood at ₹553.7 crore, a marginal decline from ₹556.8 crore YoY.
- Consolidated PAT fell 24.6% YoY to ₹69.4 crore, down from ₹92.1 crore in Q3 FY25.
- An exceptional expense of ₹7.44 crore was recorded due to the impact of new Labour Codes on retiral benefits.
- Total expenses rose to ₹468.4 crore in Q3 FY26 from ₹444.9 crore in the year-ago period, driven by higher material costs.
- Board approved converting ₹500 crore inter-company loan to equity and a fresh ₹100 crore infusion in subsidiary Cello Consumerware.
Cello World Limited has announced its earnings conference call to discuss the unaudited financial results for the quarter ended December 31, 2025. The call is scheduled for February 16, 2026, at 9:00 AM IST and will feature the Joint Managing Director and the CFO. This event provides an opportunity for institutional investors and analysts to gain insights into the company's performance and future outlook. Transcripts of the discussion will be made available on the company's official website.
- Conference call date set for February 16, 2026, at 09:00 AM IST.
- Discussion to focus on Q3 FY26 financial performance for the period ending December 31, 2025.
- Key management participants include Joint MD Gaurav Rathod and CFO Atul Parolia.
- The event is facilitated by ICICI Securities with international toll-free access for global investors.
Cello World Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the quarter ended December 31, 2025. The certificate, issued by Registrar MUFG Intime India Private Limited, confirms that the company is in compliance with dematerialization standards. Interestingly, the registrar noted that no requests for dematerialization or rematerialization were received during this specific quarter. This is a standard administrative filing required for all listed entities in India.
- Quarterly compliance certificate submitted for the period ending December 31, 2025.
- Registrar MUFG Intime India Private Limited confirmed zero (0) requests for dematerialization or rematerialization during the quarter.
- Confirms that the name of depositories has been maintained in the register of members as per regulatory timelines.
- The filing is a mandatory procedural requirement under SEBI (Depositories and Participants) Regulations, 2018.
Cello World Limited has received in-principle approval from both the National Stock Exchange (NSE) and BSE Limited for the listing of up to 66,26,551 equity shares. These shares, with a face value of Rs. 5 each, are part of the company's 'CELLO ESOP-2025' employee stock option scheme. The approval allows the company to issue and allot shares to employees as they exercise their vested options. This move is a standard corporate procedure to facilitate employee retention and align internal interests with shareholder performance.
- In-principle approval granted for a maximum of 66,26,551 equity shares.
- Shares to be issued under the CELLO ESOP-2025 scheme with a face value of Rs. 5 each.
- Approval received from NSE (Ref: NSE/LIST/52130) and BSE (Ref: DCS/ESOP/IP/RG/3985/2025-26) on January 05, 2026.
- Listing and trading permissions will be granted periodically as options are exercised and shares are allotted.
Cello World Limited has informed the stock exchanges that its trading window will be closed starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the company's unaudited financial results for the third quarter ending December 31, 2025. The restriction applies to all directors, officers, and designated employees, preventing them from trading in company shares. The window will reopen 48 hours after the financial results are officially announced to the public.
- Trading window closure begins on Thursday, January 1, 2026.
- Closure is related to the review of Unaudited Financial Results for the quarter ending December 31, 2025.
- Restriction remains in place until 48 hours after the results are declared.
- Applies to all Directors, Officers, Designated Employees, and their immediate relatives.
- The specific date for the Board Meeting to approve Q3 results will be announced separately.
Cello World Limited has received an Order-in-Original from the GST authorities in Surat regarding the classification of its PU insulated products. The order alleges that the company misclassified bottles and lunch boxes under HSN 7323 instead of HSN 3923, leading to short payment of GST. This dispute covers a significant seven-year period from April 2018 to March 2025. The company is currently evaluating the order and intends to file an appeal with the appropriate appellate authority to contest the findings.
- Order-in-Original issued by Joint Commissioner, CGST & Central Excise, Surat on December 18, 2025.
- Alleged misclassification of PU insulated bottles and lunch boxes for the period April 2018 to March 2025.
- Dispute involves classification under HSN code 7323 versus the authority's claim for HSN code 3923.
- Company plans to contest the order through an appeal to the appellate authority.
- Financial impact is yet to be quantified and will be considered as per accounting standards.
Cello World Limited held a meeting for equity shareholders and unsecured creditors on December 06, 2025, as directed by the National Company Law Tribunal, Ahmedabad Bench. The meeting addressed the proposed Composite Scheme of Arrangement amongst Wim Plast Limited, Cello Consumer Products Private Limited, and Cello World Limited. The resolution outlined in the Notice dated October 30, 2025, was approved by the equity shareholders and unsecured creditors with the requisite majority. This approval is a step forward in the proposed scheme.
- Meeting held on December 06, 2025, for equity shareholders and unsecured creditors.
- Composite Scheme of Arrangement amongst Wim Plast Limited, Cello Consumer Products Private Limited and Cello World Limited was considered.
- Resolution approved by equity shareholders and unsecured creditors with requisite majority as per the Notice dated October 30, 2025.
- Meeting followed Order dated October 07, 2025 passed by the Hon’ble Tribunal in the Company Scheme Application no. CA(CAA) No. 44/NCLT(AHM)2025
Cello World Limited held a meeting for equity shareholders and unsecured creditors on December 06, 2025, as directed by the National Company Law Tribunal, Ahmedabad Bench. The meeting, conducted via video conferencing, addressed the proposed Composite Scheme of Arrangement amongst Wim Plast Limited, Cello Consumer Products Private Limited, and Cello World Limited. The resolution outlined in the notice dated October 30, 2025, was approved by both equity shareholders and unsecured creditors with the required majority. This approval marks a significant step in the proposed scheme.
- Meeting held on December 06, 2025, at 03.00 p.m. and 05:00 p.m. (IST)
- Meeting convened pursuant to NCLT order dated October 07, 2025
- Scheme Application no. CA(CAA) No. 44/NCLT(AHM)2025
- Resolution approved by equity shareholders and unsecured creditors
Cello World Limited has scheduled a group meeting with institutional investors on December 12, 2025, starting at 10:00 AM. The meeting is organized by ICICI Venture Fund Management Co Limited and will be held in person in Udaipur. The company has explicitly stated that discussions will be limited to publicly available information and no unpublished price sensitive information (UPSI) will be shared. This interaction is part of the company's routine engagement with the investor community under SEBI regulations.
- Group meeting scheduled for December 12, 2025, in Udaipur.
- Organized by ICICI Venture Fund Management Co Limited.
- Discussions will focus strictly on publicly available information to ensure regulatory compliance.
- The meeting is conducted under Regulation 30(6) of SEBI (LODR) Regulations, 2015.
Financial Performance
Revenue Growth by Segment
In Q2 FY26, the Consumerware segment grew 23% YoY, Writing Instruments grew 16% YoY to INR 81 Cr, and the Furniture business grew 8% YoY to INR 84 Cr. Total revenue for Q2 FY26 was INR 587 Cr, up 20% YoY.
Profitability Margins
Gross Margin for FY 2024-25 was 51.7% (down 87 bps from 52.6% in FY 2023-24). PAT Margin for FY 2024-25 was 17.1% (down 74 bps from 17.8% in FY 2023-24). H1 FY26 PAT margin stood at 14.2%.
EBITDA Margin
EBITDA Margin for FY 2024-25 was 26.0% (down 75 bps from 26.7% in FY 2023-24). H1 FY26 EBITDA margin was 24.0% (22% excluding other income).
Capital Expenditure
Total capital expenditure in FY 2024-25 was INR 171.45 Cr, with INR 114.09 Cr allocated to capital work in progress. The company plans to invest approx. INR 50 Cr over one year to enhance writing instrument manufacturing infrastructure.
Credit Rating & Borrowing
The Debt Equity Ratio improved to 0.00 in FY 2024-25 from 0.27 in FY 2023-24. Interest Coverage Ratio increased significantly to 339.28 from 187.03.
Operational Drivers
Raw Materials
Steel (used in steel ware), Glass (for glassware/opalware), and plastic resins (implied for furniture/writing instruments). Steel costs have risen due to supply shortages from OEM manufacturers.
Key Suppliers
OEM manufacturers for steel ware; other specific suppliers not named.
Capacity Expansion
Glass manufacturing facility in Falna has an installed annual capacity of 20,000 tonnes. Writing instruments currently have 30-35% empty capacity at the Unomax facility, which can be expanded with additional machines.
Raw Material Costs
Raw material costs are impacted by supply shortages in steel, leading to higher procurement costs from OEMs. The company has not yet fully passed on these cost increases to consumers, impacting gross margins by 87 bps in FY25.
Manufacturing Efficiency
In-house manufacturing accounts for 78% of revenues as of H1 FY26. Glass plant utilization is currently at 55-60% and is expected to reach 80% by Q4 FY26.
Logistics & Distribution
The company leverages a network of distributors and retailers; specific distribution costs as a % of revenue are not disclosed.
Strategic Growth
Expected Growth Rate
12-15%
Growth Strategy
Growth will be driven by the re-introduction of the 'Cello' brand in writing instruments via a royalty-free lease, targeting INR 200 Cr revenue in the first year (CY 2026). Additionally, the company is ramping up its Falna glass plant to 80% utilization and expanding product lines in mechanical pencils and arts stationery.
Products & Services
Writing instruments (pens, mechanical pencils), stationery, glassware, opalware, consumerware (steel ware), cleaning aids, and molded furniture.
Brand Portfolio
Cello, Unomax, Kleeno.
New Products/Services
New product launches in mechanical pencils, arts stationery, and internationally licensed kids' products. The 'Cello' brand writing instruments are expected to contribute INR 200 Cr in CY 2026.
Market Expansion
Expanding sales and distribution networks in both domestic and international markets to reduce reliance on single distributors.
Strategic Alliances
Agreement with CPIW to lease the 'Cello' trademark for stationery and writing instruments at no additional cost or royalty.
External Factors
Industry Trends
The industry is seeing a revival in stationery driven by new product categories like mechanical pencils and licensed products. There is a shift toward branded quality products over unorganized sector offerings.
Competitive Landscape
Intense competition from unorganized businesses and established brands in the writing instruments and consumerware segments.
Competitive Moat
Strong brand recall for 'Cello' (30-year-old brand) and 'Unomax'. High in-house manufacturing (78%) provides a cost advantage and better quality control compared to competitors relying on outsourcing.
Macro Economic Sensitivity
Revenue is sensitive to festive demand, which supported the 23% growth in Consumerware in Q2 FY26.
Consumer Behavior
Increasing consumer preference for premium quality branded products and festive-led purchasing patterns.
Regulatory & Governance
Industry Regulations
Recent GST rate changes had a minimal impact on the product portfolio.
Taxation Policy Impact
Tax expense was INR 126.7 Cr in FY 2024-25, representing an effective tax rate of approximately 25.8%.
Legal Contingencies
A composite scheme of arrangement is pending before the National Company Law Tribunal (NCLT), Ahmedabad Bench.
Risk Analysis
Key Uncertainties
The gestation phase of the new glass plant may continue to impact overall margin structures until 80% utilization is reached. Counterfeit products from unorganized entities pose a risk to brand integrity.
Third Party Dependencies
Dependency on OEM manufacturers for steel ware products, which has recently led to supply shortages and higher costs.
Technology Obsolescence Risk
The company is mitigating this by integrating automation and IT solutions into design and manufacturing processes.
Credit & Counterparty Risk
The company monitors financial positions to ensure obligations to creditors and suppliers are met; current ratio is healthy at 9.31.