Cello World Q2 FY27 Results (NSE: CELLO)
Signal: Margin pressure
The read
The operating trajectory remains margin-led rather than growth-led: consolidated revenue accelerated to 7.8% YoY from -0.4% in Q1FY27, but EBITDA margin contracted 248bps to 20.0%, extending the recent margin-contraction arc; standalone PAT growth is inflated by other income of ₹4,492.07 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹633.2 Cr | +7.8% | +20.2% |
| EBIT | ₹102.43 Cr | -8.9% | |
| Net profit | ₹81.91 Cr | -10.3% | |
| EPS | ₹3.63 | -10.4% | |
| EBIT margin | 20.0% |
P&L walk
Consolidated revenue grew 7.8% YoY to ₹63,319.82 lakh, but EBITDA fell 4.1% to ₹12,653.71 lakh and margin contracted to 20.0% as employee and other expenses rose faster than sales; PAT declined 10.3% to ₹8,191.19 lakh.
Segments
The filing reports only one operating segment, Consumer Products; the key divergence is between consolidated PAT of ₹8,191.19 lakh, down 10.3% YoY, and standalone PAT of ₹4,690.03 lakh, up 129.8% on sharply higher other income.
Key positives
- Consolidated revenue rose 7.8% YoY to ₹63,319.82 lakh, a clear acceleration from the -0.4% YoY reported in Q1FY27.
- Gross margin expanded 294bps YoY to 53.4%, although the filing does not identify the driver.
- H1 operating cash flow increased 32.6% YoY to ₹17,342.46 lakh versus ₹13,075.29 lakh, despite higher inventory.
- PPE plus CWIP rose to ₹80,365.69 lakh while depreciation increased 23.6% YoY, indicating that the asset build is beginning to enter the depreciation base.
Key concerns
- EBITDA margin contracted 248bps YoY to 20.0%, continuing the recent margin-pressure trend despite revenue growth.
- Employee cost increased 14.8% YoY and other expenses increased 23.4%, both materially ahead of 7.8% revenue growth; operating leverage did not emerge.
- Consolidated PAT fell 10.3% YoY to ₹8,191.19 lakh, while standalone PAT rose 129.8% primarily because standalone other income increased to ₹4,492.07 lakh.
- Inventory increased to ₹61,406.28 lakh from ₹53,471.04 lakh at March 31, 2026, while cash fell to ₹2,434.38 lakh from ₹12,637.63 lakh.
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