Cello World Limited , a prominent player in the consumer goods sector, has reported a mixed financial performance for the first quarter. The company achieved a 6% year-on-year revenue growth, reaching INR 529.00 crores, up from INR 501.00 crores in the same quarter of the previous fiscal year.

Segment Performance

Consumerware Segment Leads Growth

The Consumerware segment emerged as the primary growth driver for Cello World, posting a robust 12% increase. Within this segment, the glassware business stood out with an impressive 50% growth, significantly contributing to the overall revenue expansion.

Writing Instruments Face Headwinds

In contrast, the Writing Instruments segment encountered challenges, with revenue declining to INR 74.00 crores from INR 83.00 crores. This downturn was attributed to a slowdown in export demand and pressure on domestic sales.

Furniture Business Remains Subdued

The furniture business of Cello World remained subdued, generating revenue of INR 90.00 crores, indicating limited growth in this segment.

Financial Highlights

Margin Performance

Despite achieving its highest-ever gross profit margin of 54%, Cello World experienced a decline in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin, which dropped to 24%. The company's Profit After Tax (PAT) stood at INR 73.00 crores, translating to a 14% margin.

New Glassware Facility Impact

The company's new glassware facility in Falna contributed INR 15.00-16.00 crores in sales. However, it operated at a loss, which negatively impacted the overall profitability of the company.

Factors Affecting Profitability

Management cited several factors contributing to margin pressure:

1. Increased sales promotion activities
2. Higher energy costs in Daman
3. Wage increases
4. Inability to raise prices due to a competitive environment

Future Outlook

Despite the challenges, Cello World maintains its revenue guidance for the full year, projecting a growth of 12-15%. However, the company has revised its EBITDA margin guidance downward to approximately 23%, reflecting the ongoing pressures on profitability.

As Cello World navigates through these challenging market conditions, the company's ability to maintain its revenue growth while addressing margin pressures will be crucial for its performance in the coming quarters.

Cello World Limited , a prominent player in the Indian consumerware market, has announced its financial results for the first quarter of fiscal year 2026, along with the outcomes of its 7th Annual General Meeting (AGM).

Q1 FY26 Financial Highlights

For the quarter ended June 30, 2025, Cello World Limited reported:

• Revenue from operations of Rs. 529.00 crores, a 6% year-on-year growth
• Gross profit of Rs. 286.00 crores, with a margin of 54%, the highest ever for the company
• EBITDA of Rs. 126.00 crores, with a margin of 24%
• Profit After Tax (Attributable to Owners) of Rs. 73.00 crores, with a margin of 14%

The company's core consumer-ware segment showed positive momentum, driven by strong performance in hydration, opalware, and glassware categories. However, writing instruments and furniture segments remained subdued during the quarter.

Segment-wise Performance

Despite achieving its highest-ever gross profit margin, the company's EBITDA margin declined by 380 basis points. This decrease was attributed to additional operational costs related to the new glassware facility, which the company expects to stabilize as the facility ramps up production in the future.

Management Commentary

Pradeep Rathod, Chairman & Managing Director of Cello World Limited, commented on the results: "Cello reported a steady start for the year, delivering a year-on-year revenue growth of 6%, reaching Rs. 529 Cr while achieving its highest-ever gross profit margin of 54.0%. This improvement underscores Cello's manufacturing excellence."

Looking ahead, Mr. Rathod stated, "We are committed to further enhancing our omnichannel presence to broaden our product reach across India with a focus on premiumization and a stable margin profile. We maintain a positive outlook for H2 FY26 driven by revival in consumer demand across categories."

Annual General Meeting Outcomes

The company held its 7th Annual General Meeting on August 8, 2025, where all 14 proposed resolutions were passed with the requisite majority. Key resolutions included:

1. Adoption of audited financial statements for FY 2024-25
2. Declaration of a 30% dividend (Rs. 1.50 per equity share)
3. Reappointment of Managing Director Pradeep Ghisulal Rathod
4. Appointment of Sarvaiya & Co as Secretarial Auditor for five years
5. Reappointment of five Non-Executive Independent Directors
6. Adoption of revised Articles of Association
7. Approval of Employee Stock Option Scheme 2025 for company and subsidiary employees

The voting was conducted through remote e-voting and e-voting during the AGM, with shareholders holding shares as of the August 1, 2025 cutoff date eligible to vote.

Cello World Limited continues to focus on expanding its product reach, emphasizing premiumization, and maintaining a stable margin profile as it navigates the evolving consumer goods market in India.