Cello World Limited — Q2 FY26
Cello World delivered a strong Q2 FY26 with revenue of ₹587.4 crore, up 20% YoY, driven by festive demand and consumerware growth of 23%.
bullish
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.
75%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
Details on Cello pens brand acquisition structure, revenue potential, and UNOMAX strategy.
Asked by Anerut Johi, ICICI Securities
Management deferred all quantitative details to a future note, providing no numbers.
premature to give numbersdeferred to separate note
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Question
AAM group has also purchased the business from BICO... if you can elaborate bit more on the transaction... what will be the revenue addition... how do we see the revenues building up for pens business in FY27... what will be strategy on UNOMAX brand?
Management (unnamed)
We are entering into an agreement with BIC for the pen brand itself... CPIW will acquire and lease to Cello World... it is a little premature for me to give you revenue numbers... we will be issuing a separate note... we will be running both brands simultaneously.
Answered
High priority
Any royalty to be paid for Cello brand and glass plant margin outlook.
Asked by Anerut Johi, ICICI Securities
Clearly answered no royalty and provided glass plant utilization and breakeven status.
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Question
Any royalty to be paid to BIC for the brand or to AAM group... with the glass plant now stabilizing, should we see steady margin expansion starting FY27?
Management (unnamed)
CPIW will acquire the brand, no royalty post that... glass utilization has come to about 60%... we are no longer losing money, it is now broken even... will start generating nominal profit.
Partial answer
Medium priority
Opalware division utilization and growth percentage for the quarter.
Asked by Rahul Dani, Monarch Network Capital Limited
Provided utilization but refused to quantify segment growth, offering offline discussion.
declined to give segment growthoffered offline
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Question
What kind of utilization have we reached for the Opalware division... what kind of growth would we have seen in the opalware division for the quarter if you could just quantify the percentage?
Management (unnamed)
In the opalware we are about close to about 85% utilization levels... we do not give out separate contributions for each category... maybe if there is a question on that I can answer it offline later.
Answered
Medium priority
Outlook for molded furniture business given margin contraction.
Asked by Rahul Dani, Monarch Network Capital Limited
Provided clear outlook: limited revenue growth, focus on premiumization and new categories.
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Question
Just wanted to get some outlook here because margins have contracted quite a bit... how are we looking at this division in the future?
Management (unnamed)
Mold division... it's going to be an up and down path... we don't see too much growth potential in this business in terms of revenues... our only thing is to keep premiumizing... we are always looking to add newer categories.
Partial answer
Medium priority
Capacity increase and revenue impact from new plastic and steel bottle capacity.
Asked by Pravin Sah, PL Capital
Described nature of capacity but gave no quantitative capacity or revenue impact figures.
no specific capacity numbersvague on revenue impact
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Question
You had mentioned that the new capacity coming on stream across plasticware and the steel bottle... if you can give some color on that how much is the potential increase in the capacity and the impact on the revenue because of that.
Management (unnamed)
Our major pain point was steel category... we are starting that facility in next month... this is more substitution of the imports rather than expansion of capacity... in terms of plastic houseware we are starting a very small amount currently.
Answered
High priority
Guidance on 12-15% growth and 23-23.5% margin for the year.
Asked by Pravin Sah, PL Capital
Provided H1 growth and margin figures and reaffirmed guidance range.
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Question
On the guidance 12 to 15% of a growth with a 23 to 23 and a half% of a margin for this year... where it is now?
Management (unnamed)
Currently in H1 we are at 13.5% growth... we are at about 24% EBITDA margins with other income... if I remove that we are at about 22%... we want to be in the 20 to 23 range without other income... we are on track.
Partial answer
High priority
Revenue potential of acquired Cello brand and capacity to support it.
Asked by Pravin Sah, PL Capital
Gave qualitative target (similar to UNOMAX) but no specific revenue number; capacity mentioned qualitatively.
no specific revenue targetdeferred to separate note
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Question
With these brand acquisition do you see the revenue the BIC Cello can able to garner such numbers?
Management (unnamed)
BIC already has a certain amount of revenue... with Cello having a stronger brand equity... in the next 1 to 1.5 years we should be looking at similar numbers like UNOMAX... we had about 30-35% capacities that were empty in our UNOMAX facility.
Partial answer
High priority
Demand environment: was Q2 uptick due to early festive or underlying improvement?
Asked by JShi, Kotak
Acknowledged uptick and early festive role but gave no split or firm forward guidance.
no quantification of festive impactcautious outlook
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Question
How do you see the demand environment continuing post festive... was it a function of early festive or is there an improvement per se?
Management (unnamed)
Yes there was an uptick... this has been by far the best quarter in terms of demand... early festive had a role but most part of October was pretty good... we have to wait and watch.
Answered
High priority
Reason for sequential gross margin decline in consumerware and writing segments.
Asked by JShi, Kotak
Explained multiple factors: glassware costs, product mix, inability to raise prices; provided specific impact estimate.
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Question
On a sequential basis your gross margins have come off sharply even in consumerware segment... what's driving that and how should we think about the trends?
Management (unnamed)
Glassware costs are still high due to low utilization... if glassware had contributed to margins you would have seen 1.5% extra margin... product mix also plays a role... we have not been able to raise prices as costs have gone up.
Answered
High priority
Timeline for closing Cello brand acquisition and revenue start.
Asked by JShi, Kotak
Provided specific timeline: close within month, revenue from January.
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Question
When do you expect to close this transaction... is it expected very soon in a week or two or could it take more time?
Management (unnamed)
Very close. This should close within this month itself and we should ideally start seeing revenues in Cello World by January.
Answered
High priority
Gross margin decline from Q1 to Q2: consumer 56% to 50%, writing 58.8% to 55%.
Asked by Achel, Noama Institutional Equities
Quantified attribution: 2-3% from glass/steel, 1-2% from mix; explained temporary nature.
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Question
Gross margin on a QoQ basis from first quarter to second quarter... consumer is down from 56% to 50% and writing down 58.8 to 55... what has driven this and how do we see it going forward?
Management (unnamed)
Glass plant sales are higher with higher costs... steelware has contraction of gross margins... discounting has still been there... 2-3% I would attribute to glassware and steelware, the rest 1-2% will always be varying.
Answered
Medium priority
Capex for FY26 and FY27.
Asked by Pravin Sah, PL Capital
Provided specific capex numbers for both years.
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Question
Can you give FY26 and FY27 capex?
Management (unnamed)
This year would be a capex of about 150... includes steel plant expansion close to 75... next year it should be around 75 odd maintenance.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| H1 growth at 13.5% | 13.5% | 20% | Understated vs filing |
| H1 EBITDA margin at 24% with other income, 22% without | 24% | 22% | Overstated vs filing |
| EBITDA margin guidance 20-23% excluding other income | 23% | 22% | Overstated vs filing |
| Revenue growth guidance 12-15% for FY26 | 15% | 20% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.