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EquityWireEarnings Review: Cello World Q1 Profit After Tax down 9% Year over Year on higher cost of materials
Earnings Review

Cello World Q1 Profit After Tax down 9% Year over Year on higher cost of materials

This story was originally published at 23:19 IST on 7 August 2026
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Informist, Friday, Aug. 7, 2026

 

--Cello World Q1 consol net profit INR 734.02 mln vs INR 806.51 mln yr ago 
--Cello World Apr-Jun consol revenue INR 5.27 bln vs INR 5.29 bln yr ago 

 

By Utthara E.S.

 

MUMBAI – Cello World Ltd. reported a significant fall in its consolidated net profit for the June quarter, dragged down by a sharp rise in the cost of materials consumed, its top expense item. The company's bottom line fell 9% on year to INR 734.02 million from INR 806.51. Sequentially, net profit was down nearly 19%.

 

Revenue from operations for the quarter was down marginally on year to INR 5.27 billion from INR 5.29 billion. Sequentially, the top line fell 19%.

 

Cello World's total expenses for the June quarter rose nearly 3% on year to INR 4.50 billion. The company's cost of materials consumed rose 19% on year to INR 2.32 billion. The expenses on purchase of stock-in-trade rose 9% on year to INR 648 million, employee benefits grew 13% to INR 680 million, and depreciation and amortisation came in at INR 218 million, up 17%. Other expenses fell 6% on year to INR 1.09 billion. The company's changes in inventories of finished goods, semifinished goods and stock-in-trade was negative INR 462 million, compared to a negative INR 110 million for the year-ago quarter.

 

The company's earnings before interest, tax, depreciation and amortisation for the June quarter were INR 1.17 billion, down 7% on year from INR 1.26 billion. The EBITDA margin contracted to 22.2% from 23.9%. Its gross profit margin fell to 52.4% from 54% and net profit margin came in at 13.9%, down from 15.2%.

 

Cello World's writing instruments segment saw revenues of INR 1.12 billion, up 52% on year. Sales in consumer ware segment fell 8% to INR 3.35 billion and sales of moulded furniture and allied products fell 11% to INR 800 million.

 

"Due to inflationary pressures and macroeconomic uncertainties, discretionary spending remained subdued for the quarter, affecting the demand for most of the consumer ware products," Pankaj Rathod, joint managing director, said.

 

Shares of Cello World ended at INR 373.15 apiece on the National Stock Exchange, down nearly 2% from Thursday. The results were disclosed after market hours.  End

 

Edited by Shubhayan Bhattacharya

 

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