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View Claim Ledger →Cello World Ltd — Q3 FY26
Cello World reported Q3 FY26 revenue of ₹553.7 crore with EBITDA margin of 22.1%, impacted by a one-time gratuity charge of ₹7.4 crore and a supply-driven 40% QoQ decline in steelware revenues due to BIS-related stockouts.
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Cello World reported Q3 FY26 revenue of ₹553.7 crore with EBITDA margin of 22.1%, impacted by a one-time gratuity charge of ₹7.4 crore and a supply-driven 40% QoQ decline in steelware revenues due to BIS-related stockouts. Consumer segment growth was muted, but writing instruments grew 11% YoY to ₹86 crore. Management guided for 8-10% overall growth over the next two quarters as steelware ramps up, with normalized EBITDA margins of ~22% expected by H2 FY27. Glassware remains a long-term bet at 60% utilization, while the Cello brand acquisition is expected to drive writing instrument revenues north of ₹500 crore in FY27. Key risk: sustained weakness in polymer prices could further pressure the molded furniture segment.
Promises0 met · 4 missedRisks4 trackedTranscriptfull text
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Steelware ramp-up delays
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Read Transcript →Quarter Snapshot
Writing Instruments Revenue
₹86 Cr
+11% YoY
Segment revenue grew 11% YoY; Cello brand acquisition to boost combined revenues north of ₹500 Cr in FY27.
Glassware Capacity Utilization
60%
flat QoQ
Utilization to remain at ~60% for next two quarters; break-even achieved but profitability requires scaling above 75%.
Online Revenue Share
15.7%
+? pp YoY
Digital channel contributed 15.7% of total revenues, gaining traction as channel mix evolves.
Steelware Revenue Decline (QoQ)
~40%
-40% QoQ
Steelware revenues fell ~40% QoQ due to BIS-related stockouts; new Rajasthan plant to ramp up over H1 FY27.
What Changed vs Last Quarter
NEW
8-10% overall revenue growth over next two quarters
Management expects 8-10% growth in Q4 FY26 and Q1 FY27 as steelware ramps up and glassware scales.
NEW
EBITDA margin to revert to ~22% in two quarters
Normalized EBITDA margin of ~22% expected within two quarters as steelware volumes normalize and one-time impact fades.
NEW
Writing instruments combined revenue north of ₹500 Cr in FY27
Unomax and Cello brands together to generate over ₹500 crore revenue in FY27, with long-term potential of ₹1,000 crore.
NEW
Capex of ₹150 Cr in FY26 and ₹75-100 Cr in FY27
Maintenance capex of ₹75-100 Cr annually plus incremental capex for writing instruments molds and machines.
DROPPED
Double-digit revenue growth for FY26
Management expects to achieve 12-15% revenue growth for the full year, with H1 growth at 13%.
DROPPED
EBITDA margin guidance of 22-23% for FY26
EBITDA margin (excluding other income) is guided at 22-23% for FY26, with H1 at 22%.
DROPPED
Steel plant to commence production in December 2025
The steel plant will start production in December 2025, stabilizing in 4-5 months, improving supply chain and margins.
DROPPED
Cello brand acquisition to close within the month
The acquisition of the Cello brand for writing instruments is expected to close within the month, with revenue contribution from Q4 FY26.
NEW RISK
Steelware ramp-up delays
New Rajasthan plant may take longer to reach full capacity, prolonging revenue and margin pressure.
NEW RISK
Weak polymer prices impacting molded furniture
Molded furniture revenue is directly proportional to polymer prices; continued weakness could suppress growth.
NEW RISK
Chinese dumping in glassware
Increased imports from China pressure glassware pricing and utilization; management expects gradual improvement as channel stock clears.
NEW RISK
Inability to pass on input cost increases
Management noted inability to pass on cost increases in prior quarters; any future raw material spike could compress margins.
RISK GONE
Steelware supply constraints and margin pressure
Steel category declined due to supply shortages and higher OEM costs, impacting margins. Recovery depends on new plant ramp-up.
RISK GONE
Glassware plant utilization ramp-up slower than expected
Glassware plant at 60% utilization; meaningful margin contribution requires 70-75% utilization, which may take time.
RISK GONE
Demand sustainability post-festive season
Q2 growth was partly driven by early festive demand; sustainability of demand in Q3 and Q4 remains uncertain.
RISK GONE
Integration and revenue visibility of Cello brand acquisition
Management declined to provide specific revenue or margin targets for the acquired Cello brand, citing premature stage.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q2 FY26
EBITDA margin (excluding other income) is guided at 22-23% for FY26, with H1 at 22%.
Fast read
Guidance and risk preview
Management expects 8-10% growth in Q4 FY26 and Q1 FY27 as steelware ramps up and glassware scales.
New Rajasthan plant may take longer to reach full capacity, prolonging revenue and margin pressure.
View Risks →