Cello World Limited has received an Order-in-Original from GST authorities regarding alleged misclassification of certain polyurethane insulated products. The company disclosed this development on December 18, 2025, in continuation of its earlier intimation dated June 24, 2025, regarding receipt of a Demand cum Show Cause Notice.

GST Order Details

The Order-in-Original has been passed by the Joint Commissioner, Central Goods and Services Tax Central Excise, Surat Commissionerate. This order follows the Show Cause Notice that was issued under Sections 74(1) and 74A(1) of the CGST Act, 2017, along with corresponding provisions of SGST/UTGST Acts and Section 20 of the IGST Act, 2017.

Alleged Classification Issue

The GST authorities have alleged misclassification of polyurethane (PU) insulated products supplied by Cello World and its subsidiaries. The specific allegation involves:

• Products Involved: PU insulated bottles and lunchboxes
• Current Classification: HSN 7323 (as per company)
• Alleged Correct Classification: HSN 3923 (as per GST authorities)
• Issue: Alleged short payment of GST due to classification difference

Company's Response Strategy

Cello World is currently evaluating the Order-in-Original and has outlined its response approach:

• The company plans to file an appeal against the order
• The appeal will be filed before the appellate authority within prescribed timelines
• Financial impact, if any, will be considered in accordance with applicable accounting standards

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This intimation follows the company's earlier communication dated June 24, 2025, when it first informed about receiving the Demand cum Show Cause Notice from the Directorate General of Goods and Service Tax Intelligence (DGGI), Surat Zonal Unit.

The company has provided detailed information as required under the listing regulations and relevant SEBI circulars, ensuring transparency with stakeholders regarding this regulatory development.

Cello World Limited , a leading consumer goods company, has reported a strong financial performance for the second quarter of fiscal year 2026, with plans to bring the Cello brand for writing instruments back under its umbrella.

Q2 FY26 Financial Highlights

Cello World achieved revenues of INR 587.40 crores in Q2 FY26, marking a robust 20% year-on-year growth. This performance has propelled the company to cross the INR 1,000 crore revenue mark on a half-yearly basis for the first time, with H1 FY26 revenues reaching INR 1,116.50 crores.

Key Financial Metrics

All figures in INR crores

Segment Performance

• Consumerware: Maintained a healthy year-on-year growth of 23%, supported by strong festive demand.
• Writing Instruments: Recorded a 16% year-on-year growth with a top line of INR 81.00 crores.
• Furniture: Grew by 8%, reaching INR 84.00 crores in revenue.

Strategic Acquisition

Cello World plans to acquire the Cello brand for writing instruments and stationery from BIC through its promoter group entity CPIW. This acquisition aims to bring the iconic Cello brand back into the company's portfolio, which it had previously divested.

Gaurav Rathod, Joint Managing Director of Cello World Limited, stated, "We are very excited to bring this back into our company soon. The Cello brand continues to enjoy a strong consumer recall and trust in the writing instruments segment."

Operational Updates

• The company's glassware plant achieved breakeven during the current quarter, with utilization levels reaching 60% in Q2.
• A new steel plant is set to commence production from December 2025, which is expected to enhance cost competitiveness and support margin improvement.
• The company maintains its guidance of double-digit revenue growth for the year, with EBITDA margins projected around 22% to 23%.

Future Outlook

Cello World remains optimistic about its growth prospects, particularly with the addition of the Cello brand to its writing instruments portfolio. The company expects to start seeing revenues from the Cello brand by January 2026.

Rathod added, "Our focus will be on enhancing operational efficiency, optimizing costs, and leveraging our established manufacturing and distribution infrastructure to unlock the full potential of the business."

The company plans to issue a separate communication outlining the strategic initiatives and other relevant details once the Cello brand acquisition is completed.

Investors and analysts will have an opportunity to gain more insights into the company's performance and strategies during an upcoming investor conference scheduled for November 20, 2025, in Mumbai, organized by Kotak Securities Limited.