This article first appeared on GuruFocus .
Release Date: February 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Cello World Ltd ( NSE:CELLO ) reported a healthy EBITDA margin of 22.1% despite challenging market conditions.
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The company has commissioned a state-of-the-art insulated steel bottle manufacturing plant in Rajasthan, which is expected to boost future revenues.
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The writing instrument segment showed a strong performance with an 11% year-on-year growth.
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The company is focusing on premiumization and digital channel expansion, with digital revenues now accounting for 15.7% of total revenues.
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Cello World Ltd ( NSE:CELLO ) expects significant growth in the writing instruments segment, with combined revenues from Unoax and Cello brands projected to exceed 500 crores in FY27.
Negative Points
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The company faced a significant decline in steel revenues due to stockouts, leading to a 40% quarter-on-quarter decline in the insulated steel portfolio.
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A one-time exceptional impact of INR7.4 crore due to gratuity provisioning affected profitability for the quarter.
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The molded furniture category witnessed a 10.6% decline due to weak polymer prices and absence of government orders.
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Glassware business is operating at only 60% utilization due to increased competition and dumping from China, impacting profitability.
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The company anticipates subdued profitability over the next two quarters as steel volumes normalize and glassware scales up.
Q & A Highlights
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Q: Can you quantify the growth delivered in the opalware and glassware segment on a quarterly basis and for 9 months? A: We do not report our revenue separately for these segments. However, in the consumer segment, we saw growth across all segments except for steelware, which led to a decline in revenues. The stockout situation in steelware significantly impacted our performance this quarter. - Gaurav Rathore, Joint Managing Director
Q: What is the guidance for revenue growth and margins for the upcoming quarters? A: If steelware had contributed meaningfully, we would have seen double-digit growth. We expect profitability to be subdued over the next two quarters but should improve drastically in H1 of the next financial year, returning to normal ratios. - Gaurav Rathore, Joint Managing Director
Q: What is the current utilization level for the opalware plant, and are there any expansion plans? A: The opalware plant is operating at about 85% utilization. Currently, there are no plans for expansion as we need to exhaust capacity to 100% first. We are treading cautiously due to new competition in the market. - Gaurav Rathore, Joint Managing Director
Q: How is the company managing financial risks related to raw material costs, working capital, and capital allocation? A: Our profit margins have remained range-bound due to our product mix, which provides a competitive advantage. We do not foresee significant risks in these areas, and new product introductions continue to provide a mix advantage. - Atul Perula, CFO
Q: What is the impact of the new steel plant on revenue and margins, and will third-party sourcing continue to affect performance? A: As we ramp up production and reduce OEM supplies, we expect meaningful growth in revenue and margins. The full impact will be seen in H2 of the next financial year, with some impact visible over the next two quarters. - Gaurav Rathore, Joint Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
