Cello World September profit falls 10% despite revenue gain

Cello World Limited reported consolidated profit after tax of Rs 81.91 crore for the quarter ended September 30, 2026, down 10% from Rs 91.33 crore a year earlier, although revenue from operations rose 8% to Rs 633.20 crore. Total expenses increased faster than revenue, lifting to Rs 536.02 crore from Rs 479.76 crore.

Why did Cello World’s September-quarter profit fall?

Cello World’s September-quarter profit fell because expenses rose 12% year on year while total income increased 8%. Consolidated profit before tax declined to Rs 110.41 crore from Rs 121.28 crore, and profit after tax decreased to Rs 81.91 crore from Rs 91.33 crore.

Total income was Rs 646.43 crore in the quarter ended September 30, 2026, compared with Rs 601.04 crore in the prior-year quarter. Cost of materials consumed rose to Rs 228.27 crore from Rs 188.26 crore, employee-benefit expense increased to Rs 70.85 crore from Rs 61.74 crore, and other expenses rose to Rs 125.41 crore from Rs 101.65 crore.

Depreciation and amortisation increased to Rs 24.10 crore from Rs 19.50 crore, while finance costs rose to Rs 52.55 lakh from Rs 48.03 lakh. Changes in inventories of finished goods, semi-finished goods and stock-in-trade were a Rs 7.43 crore credit in the latest quarter, compared with a Rs 29.33 crore expense a year earlier.

How did Cello World perform versus the June quarter?

Cello World’s revenue and profit both increased sequentially in the September 2026 quarter. Revenue from operations rose to Rs 633.20 crore from Rs 526.72 crore in the quarter ended June 30, 2026, while profit after tax increased to Rs 81.91 crore from Rs 73.40 crore.

Total income increased from Rs 540.45 crore in June to Rs 646.43 crore in September, and profit before tax rose from Rs 94.69 crore to Rs 110.41 crore. Basic and diluted earnings per share, which are not annualised for quarterly results, increased to Rs 3.63 from Rs 3.25.

Total expenses also rose sequentially to Rs 536.02 crore from Rs 449.76 crore. Purchases of stock-in-trade increased to Rs 74.29 crore from Rs 64.80 crore, employee-benefit expense rose to Rs 70.85 crore from Rs 68.02 crore, and other expenses increased to Rs 125.41 crore from Rs 108.71 crore.

The inventory-change line was a Rs 7.43 crore credit in September, compared with a Rs 46.21 crore credit in June. Materials consumed declined to Rs 228.27 crore from Rs 232.01 crore, while depreciation and amortisation increased to Rs 24.10 crore from Rs 21.85 crore.

What do Cello World’s half-year results show?

Cello World’s six-month profit after tax declined 10% to Rs 155.31 crore despite a 4% increase in revenue from operations to Rs 1,159.91 crore. In the six months ended September 30, 2025, profit after tax was Rs 172.08 crore and revenue from operations was Rs 1,116.45 crore.

Total income increased to Rs 1,190.17 crore from Rs 1,147.30 crore, but total expenses rose to Rs 985.07 crore from Rs 918.47 crore. Consequently, profit before tax fell to Rs 205.10 crore from Rs 228.82 crore, while basic and diluted earnings per share decreased to Rs 6.88 from Rs 7.63.

Materials consumed increased to Rs 460.28 crore from Rs 383.16 crore, employee-benefit expense rose to Rs 138.87 crore from Rs 122.18 crore, and other expenses increased to Rs 233.41 crore from Rs 217.22 crore. Depreciation and amortisation rose to Rs 45.95 crore from Rs 38.14 crore, and finance costs increased to Rs 1.10 crore from Rs 59.60 lakh.

The half-year inventory-change line was a Rs 53.64 crore credit, versus a Rs 18.35 crore expense in the prior-year period. Total tax expense declined to Rs 49.79 crore from Rs 56.80 crore, comprising current tax of Rs 48.52 crore and deferred tax of Rs 1.28 crore in the latest half-year.

What happened to Cello World’s cash flow and working capital?

Cello World generated net operating cash flow of Rs 173.42 crore during the six months ended September 30, 2026, up from Rs 130.75 crore a year earlier. Cash generated from operations rose to Rs 221.19 crore from Rs 182.23 crore, while net income taxes paid decreased to Rs 47.77 crore from Rs 51.48 crore.

Working-capital movements used Rs 4.11 crore in the latest half-year, compared with Rs 59.34 crore in the previous year’s period. Trade and other receivables generated a Rs 30.45 crore cash inflow, against a Rs 114.41 crore outflow previously, but inventories used Rs 79.35 crore compared with a Rs 23.56 crore inflow a year earlier.

Investing activities used Rs 227.27 crore, compared with Rs 116.48 crore in the prior-year half. Purchases of investments were Rs 733.55 crore and sales of investments were Rs 592.90 crore, while purchase of property, plant and equipment, intangible assets and capital advances amounted to Rs 91.24 crore.

Cash and cash equivalents fell to Rs 24.34 crore at September 30, 2026, from Rs 126.38 crore at March 31, 2026. Current investments declined to Rs 566.52 crore from Rs 597.90 crore, while non-current investments increased to Rs 236.42 crore from Rs 21.63 crore and current borrowings declined to Rs 21.67 crore from Rs 34.62 crore.

How did the arrangement scheme affect Cello World’s reported comparisons?

Cello World said its amalgamation arrangement involving Wim Plast Limited and Cello Consumer Products Private Limited was accounted for under Indian Accounting Standard 103, or Ind AS 103. The National Company Law Tribunal’s Ahmedabad Bench sanctioned the scheme on May 14, 2026, and it became effective from the appointed date of April 1, 2025, after filing with the Registrar of Companies on May 27, 2026.

Cello World allotted 46,53,239 fully paid-up equity shares of Rs 5 each to Wim Plast shareholders other than Cello World, effective June 9, 2026. The company filed the requisite form on August 14, 2026, and said the comparative financial figures and earnings per share had been restated from April 1, 2025 to reflect the scheme.

Consolidated paid-up equity capital was Rs 112.77 crore at September 30, 2026, compared with Rs 110.44 crore at March 31, 2026. Other equity increased to Rs 2,710.24 crore from Rs 2,181.21 crore, while total equity was Rs 2,823.01 crore compared with Rs 2,700.95 crore.

The group reported Consumer Products as its sole reportable segment under Indian Accounting Standard 108, or Ind AS 108. The board approved the unaudited consolidated results on November 5, 2026, and Deloitte Haskins & Sells LLP issued a limited-review conclusion on the financial results.

Conclusion

Cello World’s September-quarter revenue growth did not translate into higher consolidated profit because expenses increased more quickly, particularly materials, employee benefits, depreciation and other expenses. The same pattern extended into the first half, when revenue rose to Rs 1,159.91 crore but profit after tax declined to Rs 155.31 crore.

The next results will show whether inventory, which absorbed Rs 79.35 crore of cash in the first half, and receivables continue to shape operating cash flow. Investors can also monitor the restated comparisons and per-share figures following the scheme, under which 46,53,239 shares were allotted effective June 9, 2026.