Cello World Limited hosted an investor call on November 06, 2026, to discuss its unaudited financial results for the second quarter and first half of FY27. The company reported a revenue of INR633.2 crores for Q2 FY27, marking a 7.8% year-on-year increase. Management detailed performance across segments including Consumerware, Writing Instruments, and Moulded Furniture, along with commentary on margins, raw material costs, and future growth strategies.
Cello World Details Q2 FY27 Performance and Outlook
On November 06, 2026, Cello World Limited conducted a conference call to present its financial results for the second quarter and the first half of the financial year 2027 (Q2 FY27 and H1 FY27). The call provided insights into the company’s operational performance, segment-wise contributions, and strategic initiatives.
Key Financial Highlights for Q2 FY27
The company reported a revenue of INR633.2 crores for Q2 FY27, representing a 7.8% year-on-year growth and a 20.2% sequential increase. EBITDA stood at INR135 crores, with an EBITDA margin of 21.3%. Profit After Tax (PAT) for the quarter was INR81.9 crores, yielding a PAT margin of 12.9%. For the first half of FY27 (H1 FY27), revenue grew by 3.9% to INR1,159.9 crores.
Segmental Performance and Market Dynamics
Consumerware revenue remained broadly flat at INR417.2 crores in Q2 FY27, attributed to a shift in festive demand to Q3. The steel bottles segment showed healthy demand, with a focus on expanding SKU availability and capacity utilization. Writing Instruments demonstrated strong growth of 69.5% year-on-year, driven by the Cello brand. Moulded Furniture and Allied Products saw a subdued quarter with revenue of INR78.8 crores, down 6.5% year-on-year, with the company prioritizing profitability over aggressive growth in this segment.
The online channel continued to gain share, contributing 15.2% of total revenue through e-commerce and quick commerce. Management noted that the second half of the financial year is seasonally stronger and expects festive demand to support performance.
Cost Environment and Margin Impact
The cost environment was described as challenging, with the West Asia conflict and volatile crude prices impacting polymers, fuel, gas, and packaging costs. Higher natural gas prices also affected glassware and opalware operations. Gross margins were reported at 50.2%, a marginal increase year-on-year but lower sequentially. EBITDA margins were impacted by these cost pressures.
Outlook and Strategic Priorities
Looking ahead to FY28, Cello World’s priorities include operational efficiency, portfolio rationalization, distribution strategy realignment, deeper market penetration, and working capital discipline. Management expressed confidence in a steady improvement in performance as demand normalizes and strategic initiatives are implemented.
Capacity Utilization and Future Plans
Capacity utilization for opalware was around 80%, with plans to exhaust capacity by next year. Glassware utilization was at 60%, with revenues starting to increase quarter-on-quarter. The company is working on improving efficiency in the steel bottle segment and aims to reach full capacity in the next couple of quarters. Expansion plans for opalware include a potential brownfield facility, with a view to be taken early next year.
Source: BSE
