Cello World (CELLO) Q2 25/26 earnings summary

Executive summary

• Achieved 20% year-on-year revenue growth in Q2 FY26, reaching INR 587 crore, with strong festive demand and efficient execution across key categories.

• Board approved unaudited standalone and consolidated financial results for Q2 FY26, with no material misstatements noted.

• Announced reacquisition of the Cello brand for writing instruments and stationery, expected to enhance growth prospects.

• Glass plant in Falna ramping up, currently at 55% utilization, expected to reach 80% by Q4FY26.

• Minimal impact from recent GST rate changes on portfolio.

Financial highlights

• Q2 FY26 revenue: INR 587.4 crore (20% YoY growth); EBITDA: INR 141.3 crore (24% margin); PAT: INR 85.7 crore (14.6% margin).

• H1 FY26 revenue: INR 1,116.5 crore (13% YoY growth); EBITDA: INR 267.6 crore (24% margin); PAT: INR 158.7 crore (14.2% margin); cash flow from operations: INR 261.7 crore.

• Standalone Q2 FY26 revenue: ₹27,561.63 lakhs; consolidated Q2 FY26 revenue: ₹58,744.11 lakhs.

• Gross profit margin for Q2 FY26: 49.5% (down from 51.6% YoY); EBITDA margin: 24.0% (down from 26.9% YoY).

• Maintained a healthy net cash position and strong cash flow from operations.

Outlook and guidance

• On track for double-digit revenue growth for FY26, targeting 12%-15% growth and EBITDA margins of 22%-23% (excluding other income).

• Expect margin improvement as new steel and glassware plants ramp up and supply constraints ease.

• Anticipate stronger FY27 with expanded capacity and improved operational efficiencies.

• Composite Scheme of Arrangement involving subsidiaries and Wim Plast Limited progressing, with NCLT approval process underway.

• Dividend of ₹1.50 per share for FY25 approved at AGM.