Cello World (CELLO) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 553.7 crore with an EBITDA margin of 22.1%, impacted by a one-time gratuity provision of INR 7.4 crore due to new Labour Codes and mixed demand across segments.

• Writing instruments grew 11% year-over-year, while consumerware was muted due to steelware supply constraints and moulded furniture declined on weak polymer prices.

• Strategic focus includes premiumization, portfolio streamlining, and expanding sales channels to improve efficiency and ROCE.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

• Internal capital restructuring included converting INR 500 crore inter-company loans to equity and a fresh infusion of INR 100 crore.

Financial highlights

• Q3 FY26: Revenue INR 553.7 crore, EBITDA INR 122.3 crore (22.1% margin), PAT INR 63.6 crore (11.5% margin); 9M FY26: Revenue INR 1,671 crore, up 8% YoY; EBITDA INR 389.8 crore (23.3% margin); PAT INR 222.3 crore (13.3% margin).

• Q3 FY26 standalone revenue: INR 25,371.93 lakhs, net profit INR 855.41 lakhs; consolidated revenue: INR 55,366.45 lakhs, net profit INR 6,940.57 lakhs.

• Earnings per share (consolidated, Q3 FY26): INR 2.88, down from INR 3.99 in Q3 FY25.

• Consumerware contributed 69.5% of revenue, writing segment 15.5%, moulded furniture 15%.

• Channel mix: general trade 75.2%, export 9.1%, online 10.6%, modern trade 5.1%.

Outlook and guidance

• Expect 8–10% overall growth in the next two quarters, with margins normalizing to 22% EBIT as steelware ramps up and glassware scales.

• Emphasis on operational efficiency, margin strengthening, and working capital management.

• Awaiting final NCLT order for the approved composite scheme of arrangement among group companies.

• Writing instruments segment projected to exceed INR 500 crore revenue in FY27, targeting INR 1,000 crore in two years.

• Full impact of steelware ramp-up expected in H2 FY27; significant growth anticipated post-normalization.