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.
CELLOWORLD
Other
10 Feb 2026
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.
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
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.
Management Guidance
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.
Management guidance revenueEBITDA 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.
Management guidance marginsWriting 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.
Management guidance revenueCapex 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.
Management guidance capexKey Risks
Steelware ramp-up delays
New Rajasthan plant may take longer to reach full capacity, prolonging revenue and margin pressure.
high · management_commentaryWeak polymer prices impacting molded furniture
Molded furniture revenue is directly proportional to polymer prices; continued weakness could suppress growth.
medium · analyst_questionChinese dumping in glassware
Increased imports from China pressure glassware pricing and utilization; management expects gradual improvement as channel stock clears.
medium · management_commentaryInability 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.
medium · data_observationNotable Quotes
Had the steelware products delivered the same growth as last year last quarter, we would have seen a significant growth in revenues for the consumerware segment in this quarter.
We remain confident of delivering about 8 to 10% overall growth supported by the steelware ramp up and glassware scaling in the next couple of quarters.
Glassware is a very long-term bet for the company. The entry barrier is extremely high. We are not worried about current profitability.
Frequently Asked Questions
What was Cello World's revenue in Q3 FY26?
Cello World reported revenue of ₹554 Cr in Q3 FY26, representing a — change compared to the same quarter last year.
What guidance did Cello World management give for FY27?
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. 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. 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. 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.
What are the key risks for Cello World in FY27?
Key risks include Steelware ramp-up delays — New Rajasthan plant may take longer to reach full capacity, prolonging revenue and margin pressure.; Weak polymer prices impacting molded furniture — Molded furniture revenue is directly proportional to polymer prices; continued weakness could suppress growth.; Chinese dumping in glassware — Increased imports from China pressure glassware pricing and utilization; management expects gradual improvement as channel stock clears.; 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..
Did Cello World meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Cello World Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.