Cello World Q1 FY27 Results (NSE: CELLO)
Signal: Revenue declined
The read
The quarter shows an operating-margin inflection to 22.2% after five consecutive quarters of YoY OPM contraction, but the recovery is not yet a clean growth signal: revenue declined 0.4% YoY, gross margin compressed 160bps as raw-material cost rose to 44.1% of revenue, and PAT fell 9.0% to ₹7,340.22 lakh. The consolidated group remains substantially stronger than the parent, whose PAT declined 28.1% and whose other income represented 68.9% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹526.72 Cr | -0.4% | -19.4% |
| EBIT | ₹0.95 Cr | N/A | |
| Net profit | ₹73.4 Cr | -9.0% | |
| EPS | ₹3.25 | -9.2% | |
| EBIT margin | 22.2% |
P&L walk
Consolidated revenue declined 0.4% YoY to ₹52,671.57 lakh, while gross margin compressed 160bps to 52.4% as raw-material cost rose to 44.1% of revenue; EBITDA margin nevertheless recovered to 22.2%, but PAT fell 9.0% to ₹7,340.22 lakh as depreciation and finance costs increased.
Segments
No segment results table is disclosed; the material divergence is basis-related, with consolidated PAT of ₹7,340.22 lakh versus standalone PAT of ₹1,685.65 lakh, indicating subsidiaries generated most of the group's earnings.
Key positives
- Consolidated EBITDA margin recovered to 22.2% from 21% in Q1FY26, reversing the recent margin contraction trend.
- Operating expenses of ₹17,691.99 lakh were broadly flat YoY, rising only 0.2% while revenue declined 0.4%.
- The consolidated group generated PAT of ₹7,340.22 lakh versus standalone PAT of ₹1,685.65 lakh, confirming that subsidiaries remain the main earnings engine.
- QIP utilisation showed no deviation, with ₹91.74 Cr utilised for the new stainless-steel bottle and plastic-insulatedware facility.
Key concerns
- Revenue declined 0.4% YoY to ₹52,671.57 lakh, interrupting the 11.0% growth delivered in Q4FY26.
- Gross margin compressed 160bps YoY to 52.4% as raw-material cost increased to 44.1% of revenue from 36.8%; the filing does not disclose the driver or degree of pass-through.
- PAT declined 9.0% YoY to ₹7,340.22 lakh despite other income rising 4.9% to ₹1,809.42 lakh.
- Depreciation rose 17.2% YoY to ₹2,184.95 lakh and finance costs rose 394.5% to ₹57.20 lakh, increasing pressure below EBITDA.
- Standalone PAT fell 28.1% YoY to ₹1,685.65 lakh, while other income of ₹1,451.69 lakh represented 68.9% of standalone PBT.
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