Cello World Limited — Q1 FY26
Cello World reported a modest 6% YoY revenue growth to ₹529 crore in Q1 FY26, missing expectations due to early rains impacting the hydration category and continued weakness in...
bearish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
82%Questions answered1Evaded / deflected11Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Revenue contribution and profitability drag from glassware business
Asked by JSH, KC Securities
Management acknowledged drag but did not quantify revenue or loss for glassware.
no specific revenue contribution givenno exact loss amount
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Question
could you call out the revenue contribution of glassware business and more importantly what's the drag on profitability in this quarter which will help us appreciate the margins of rest of the business better?
Kov (Management)
in the glasser segment it's still in the negative. So there is a loss in the quarter for that particular segment which has dragged the profitability a little bit... we are at about 65% efficiencies... it will be a drag on profitability by a percentage point or so for this entire year.
Answered
High priority
Reason for 525 bps EBITDA margin decline vs expected 150 bps
Asked by JSH, KC Securities
Management listed multiple specific factors causing the margin decline beyond glassware.
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Question
150 basis point decline in profitability was expected from glassware but this quarter it dropped 525 basis point at EBITDA margin level so is there additional pressure over and above the drag from glassware?
Kov (Management)
there has been a lot of margin pressure due to the demand pressures and the sales revenue pressures... sales promotion activities has increased... we have not been able to raise prices... energy costs have gone up... wages have gone up... there is a degrowth in the writing instrument segment...
Partial answer
High priority
Outlook for writing instruments after 10%+ decline in Q1
Asked by JSH, KC Securities
Management acknowledged disappointment but gave no quantified outlook, only vague hope.
no specific growth guidancevague hope
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Question
on writing instruments after a weak FY25 we thought it will be back to growth this year but it has again started with a 10% plus decline in Q1. So could you give us some outlook for rest of the year?
Kov (Management)
in the writing segment yes it's been disappointing... it has been challenging from the export side... domestic demand also not growing much... end of June some parts of July have seen a decent traction so we still hopeful... we'll grow at least this year by a little bit.
Answered
High priority
Status of 17-18% growth guidance for consumer business
Asked by Pravin Sahai, Prabhudas Lilladher Capital
Management revised guidance to 12-15% overall, addressing the question directly.
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Question
first question is related to your guidance the last quarter what we had given related to the growth of consumer business which is quite higher like 17-18%. So where it holds right now?
Kov (Management)
we still guide for about 12 to 15% overall given that the glassware business is growing pretty well... the consumer business still remains healthy and it remains on the growth path.
Answered
Medium priority
Where will furniture business gross margin settle?
Asked by Pravin Sahai, Prabhudas Lilladher Capital
Management gave a clear answer: margins will remain flat at last year's level.
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Question
Last two quarters we are seeing the gross margin contraction is continue. So where you will see this gross margin of a furniture business to settle?
Kov (Management)
the gross margin has been because of the product mix... it remains flat. There will be no expansion in the margin... it will stabilize at a flat margin of last year.
Answered
Medium priority
Capex for this financial year
Asked by Pravin Sahai, Prabhudas Lilladher Capital
Management provided specific capex numbers and breakdown.
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Question
last is for capex for this financial year.
Kov (Management)
the capex for this financial year is majorly going to be the steel flask which is in the tune of about 40 to 50 crores... otherwise it's just maintenance capex so it'll be around 50-60 cr rupees so about 100 odd crores for the year.
Declined
Low priority
Breakup of consumerware into openware and hydration
Asked by Lakshmi Naran, Tunga Investments
Management clearly stated they do not provide that breakdown.
refused to provide breakdown
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Question
do you actually give the break up of the consumerware into openware and the hydration?
Kov (Management)
No, we actually report only consumer figures. We do not do a break up.
Answered
High priority
Sales from new glass plant this quarter and full year outlook
Asked by Percy Pentaki, Securities (firm unclear)
Management provided specific sales figures and full-year guidance for the new plant.
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Question
last year you had given some data about the new plant that 20 cr of sale has come from the new plant out of which 10 cr was import substitution. So can you give the similar figures for this quarter please?
Kov (Management)
we are around about 15 to 16 crores came again from our sales from our factory... about 60% now is the factory product line and about 40% is the import product line... for a full year basis we are anticipating about 110 to 120 cr of sales.
Answered
High priority
Company-level EBITDA margin guidance for this year
Asked by Percy Pentaki, Securities
Management gave a specific EBITDA margin guidance of ~23%.
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Question
how do we look at the company level EBITDA margin for this year?
Kov (Management)
for this year you should look at EBITDA margin of around 23 odd% for the entire year.
Declined
High priority
Revenue and EBITDA loss for new plant
Asked by Aelari, Noama Institution of Equity
Management declined to provide EBITDA loss for the new plant during the call.
refused to share EBITDA lossdeferred to later
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Question
if you could give some sense about what is the revenue and the EBITDA level loss for the new plant.
Kov (Management)
EBITDA level loss we don't put it here. If you need that information, we'll share it to you a little later.
Answered
Medium priority
Exposure to United States as percentage of writing instruments
Asked by Barani, Moneycontrol Pro
Management provided a specific percentage range for US exposure.
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Question
I just wanted to get a sense of overall exposure to the United States. What would be that as a percentage of writing instruments?
Kov (Management)
it's about 5 to 7% of our export sales is the United States. So we don't have major reliance on them.
Answered
Medium priority
Domestic vs export degrowth in writing instruments
Asked by Sum Kumar, Mosil Financial Services
Management clearly attributed degrowth to exports and said domestic was flattish.
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Question
in this quarter in writing instrument we have seen a 12% degrowth. So can you talk on how is the domestic market and as well as export?
Kov (Management)
it is volume degrowth also and also a little bit of value degrowth... domestic kind of was still almost flattish and major degrowth was still exports.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin guidance of ~23% for FY26 | 23% | 21% | Overstated vs filing |
| Revenue growth guidance of 12-15% overall for FY26 | 12% | 6% | Overstated vs filing |
| New plant sales of 15-16 crores in Q1 FY26 | ₹15 cr | ₹529 cr | Understated vs filing |
| Full year new plant sales guidance of 110-120 crores | ₹110 cr | ₹529 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.