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Informist, Friday, Aug. 7, 2026

MUMBAI – Cello World Ltd. is expected to report a rise in its consolidated net sales for the June quarter, driven by growth in the writing instrument segment, according to three brokerages tracking the company. However, only one brokerage expects the company to post a higher net profit for the June quarter. The other two brokerages expect a fall in net profit due to a fall in revenue from the consumer goods and moulded furniture segments.

Cello World is expected to report a consolidated net profit of INR 771 million for the June quarter, according to Motilal Oswal Financial Services Ltd., up almost 6% from INR 730 million in the year-ago quarter. Kotak Securities Ltd. expects the company to report a lower net profit of INR 667 million while Anand Rathi Share and Stock Brokers Ltd. estimates it to be INR 720 million. The lower profit estimates range from a fall of more than 1% by Anand Rathi to a fall of almost 9% by Kotak. 

The company's consolidated net sales are expected to grow to INR 5.38 billion or INR 5.98 billion for the June quarter, according to the estimates. The higher estimate for net sales is from Anand Rathi and the lower is from Motilal Oswal. The company's net sales were INR 5.29 billion in the year-ago quarter.

The company's revenue growth will be aided by a 4% on-year growth in the cello houseware segment and a 10% on-year growth in the consumer glassware segment, Kotak Securities said. The price hikes in the cello houseware segment implemented in the June quarter will likely be offset by lower volume growth. The company's writing instrument segment is expected to report a 40-50% on-year revenue growth and this will support the overall performance of the company, brokerages said.

The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 994 million and INR 1.11 billion for the June quarter, by Kotak Securities and Motilal Oswal respectively. The company's EBITDA was INR 1.09 billion in the year-ago quarter. The company's earnings before interest and tax are expected to decline 12% on year due to higher depreciation of the rupee.

Cello World's EBITDA margin for the June quarter is expected to remain unchanged at 20.6% from the year-ago quarter, according to Motilal Oswal. Kotak Securities and Anand Rathi expect the company's EBITDA margin to contract to 17.1% and 17.8% respectively.

The company's gross margin for the quarter is also expected to contract 540 basis points on year to 48.6%, Kotak Securities said. The contraction of the gross margin and the EBITDA margin is likely to be driven by lower sales of the company for the June quarter, despite the production volume rising, Kotak Securities said. The production volume is expected to grow as the company's new glassware plant has started operations in the quarter, the brokerage added.

The company will detail its June quarter earnings Friday. At 1505 IST, shares of Cello World were traded at INR 372 on the National Stock Exchange, down almost 2%. The shares are down 1% since the company announced its March quarter earnings on May 27. All four brokerage reports on the company available with Informist, have a "buy" recommendation on the stock with an average target price of INR 492, which is 32% higher than the current market price.

The following are the Apr-Jun earnings estimates for Cello World Ltd. from three brokerages in descending order of the estimates of net profit, in INR million:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Utthara E. S.

Edited by Pankaj Aher

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