Cello World Limited announced its unaudited financial results for the third quarter ended December 31, 2025. Total revenue for Q3 FY26 stood at Rs. 553.7 crores, marking a slight year-over-year (YoY) decline of 1%. Profit After Tax (PAT) attributable to owners was Rs. 63.6 crores, down 26% YoY, impacted by an exceptional item related to gratuity liability adjustments. The company noted strong 11% growth in the Writing Instruments category.
Cello World Q3 FY26 Financial Performance Highlights
Cello World Limited released its unaudited financial results for the third quarter ended December 31, 2025 (Q3 FY26). Despite mixed demand sentiments, the company reported consolidated revenue from operations of Rs. 553.7 crores, a marginal decrease of 1% compared to Q3 FY25 (Rs. 556.8 crores).
Key financial metrics for the quarter:
- Gross Profit: Rs. 274.5 crores (down 1% YoY), with the Gross Profit Margin remaining stable at 49.6%.
- EBITDA: Rs. 122.3 crores, showing a 12% YoY decline, leading to an EBITDA Margin of 22.1% (down from 25.1% in Q3 FY25).
- Profit Before Tax*: Declined by 24% to Rs. 94.4 crores.
- PAT (Attributable to Owners): Fell by 26% to Rs. 63.6 crores, resulting in a PAT Margin of 11.5%.
*Note: The results reflect an Exceptional Item of Rs. 7.4 Cr due to an increase in gratuity liability from past service costs and changes in leave liability due to new Labour laws.
Nine Months (9M) FY26 Performance Summary
For the first nine months of FY26, the consolidated revenue grew by 8% YoY to Rs. 1,670.1 crores. Gross Profit increased by 6% to Rs. 851.2 crores. However, EBITDA declined by 4% to Rs. 389.8 crores, and PAT saw an 11% drop to Rs. 222.3 crores.
Segmental Business Review
Performance varied significantly across the company’s key business segments:
Revenue Breakup
- Consumer Ware: Revenue was muted at Rs. 384.5 crores (-1% YoY) due to supply constraints in the steel category. For 9M FY26, this segment grew by a strong 11%.
- Writing Instruments: Delivered 11% growth in Q3 FY26, reaching Rs. 85.9 crores. The 9M FY26 growth stood at 4%.
- Moulded Furniture and Allied Products: Experienced a decline, reporting Rs. 83.3 crores (-11% YoY), attributed to falling prices. The 9M FY26 revenue declined by 2%.
Gross Profit Breakup
The contribution from Writing Instruments showed significant margin improvement in the quarter, increasing gross profit by 15% to Rs. 48.5 crores. Conversely, the Moulded Furniture segment’s gross profit dropped by 20% to Rs. 33.0 crores.
Management Commentary and Future Outlook
Mr. Pradeep Rathod, Chairman & Managing Director, stated that the performance came despite strong festive offtake in the prior quarter and concurrent mixed demand sentiments. Looking ahead, the focus is on streamlining the product portfolio, expanding premium offerings, and reshaping sales channels with an emphasis on emerging platforms. These initiatives aim to enhance operational efficiency, strengthen margins, and boost ROCE over time.
Corporate Update
The Board has approved a key internal capital restructuring move, authorizing the conversion of pre-existing inter-company loans aggregating to Rs. 500 crore into equity shares. Additionally, a fresh capital infusion of Rs. 100 crore will be made into its subsidiary, Cello Consumerware Private Limited (CCPL).
Source: BSE
