Cello's writing instruments jumped 64%. Glassware stayed at breakeven.
One segment is carrying the company. Chinese dumping has the other stuck. FY27 guidance is 10-12% revenue growth and ₹100 cr in capex.
What's new
- Writing instruments revenue surged 64%, driving total annual revenue to ₹2,323.7 crore, up 8.8%.
- Glassware segment hit breakeven due to rising raw material costs and dumped Chinese imports.
- FY27 guidance: 10-12% revenue growth and ₹100 cr capex for a new Rajasthan steel bottle plant.
Why this matters
Cello is a one-engine story right now. The writing instruments business is growing fast enough to mask a glassware division under pressure from imports. The ₹100 crore capex bet on steel bottles is an attempt to build a second growth driver, but it will take time to scale.
What we're watching
- Whether the Rajasthan steel bottle plant can ramp up and hit the guided revenue targets.
- If stationery revenue crosses ₹500 crore as management expects, following the Cello brand acquisition.
- Any policy response to Chinese dumping that could change the glassware segment's outlook.
The full read
Cello World's annual results reveal a stark split. Revenue grew 8.8% to ₹2,323.7 crore, but the writing instruments segment alone grew 64%. That boom masked stagnation in glassware, which broke even after being hit by rising input costs and a flood of dumped Chinese imports. For FY27, management is guiding for 10-12% revenue growth and plans to spend ₹100 crore on a new steel bottle plant in Rajasthan. They also expect the stationery segment, boosted by the recent Cello brand acquisition, to top ₹500 crore in revenue. The company's immediate future depends on whether the writing instruments boom can keep running while the new capex project takes shape.
Questions answered
- Why is the glassware segment only breaking even?
- Two reasons: higher raw material costs and a surge of cheap, dumped glassware imports from China. The combination has capped profitability in the division.
- What is the main driver behind the 8.8% revenue growth?
- The writing instruments segment, which grew 64% year-on-year. This single business offset weaker performance elsewhere and lifted total revenue to ₹2,323.7 crore.
- What is the plan for the ₹100 crore capital expenditure?
- The money is for a new steel bottle manufacturing facility in Rajasthan. Management is building it to expand the product portfolio and drive the next phase of growth.
- How does the FY27 guidance look compared to the past year?
- The company is guiding for 10-12% revenue growth, a modest acceleration from the 8.8% just reported. It also targets a 2-2.5% improvement in EBITDA margins as new manufacturing lines come online.