Cello World Reports Q2 Net Profit Of Rs 82 Crore As Revenue Rises 8 Per Cent, Writing Instruments Segment Surges
Mumbai: Cello World Limited reported a 10.3 per cent year-on-year decline in net profit to ₹81.9 crore for the September quarter of FY27, as elevated input costs weighed on earnings despite higher revenue. The consumer products manufacturer's revenue from operations increased 7.8 per cent to ₹633.2 crore, supported by strong growth in its writing instruments business.
Profit Declines
Cello World's net profit slipped from ₹91.3 crore in Q2 FY26 to ₹81.9 crore in Q2 FY27. The decline came despite improved revenue, highlighting pressure on profitability during the quarter.
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For the first half of FY27, revenue increased 3.9 per cent to ₹1,159.9 crore from ₹1,116.5 crore in the corresponding period last year. However, half-yearly net profit declined 9.7 per cent to ₹155.3 crore.
Segment Performance
Writing instruments emerged as the strongest-performing segment, with quarterly revenue surging 69.5 per cent to ₹137.2 crore. Consumer ware revenue declined 1.2 per cent to ₹417.2 crore, while moulded furniture and allied products recorded a 6.5 per cent fall to ₹78.8 crore. The contrasting segment performance reflected uneven demand across product categories.
Festive Demand
Chairman and Managing Director Pradeep Rathod said some seasonal and institutional gifting demand had shifted into the third quarter. He attributed the timing change to the festive season falling later this year.
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Rathod also highlighted persistent inflation in raw material and operating costs. Geopolitical tensions in West Asia continued affecting polymer, fuel, gas and packaging prices, creating challenges for profitability.
Business Outlook
Cello World's quarterly performance reflected strong writing instruments growth alongside weaker earnings. Investors will monitor festive demand, input costs and consumer ware sales in the coming quarters. The company's ability to manage expenses while sustaining revenue growth will remain important.
Disclaimer: This report is based on company exchange filings and is for informational purposes only. Investors should independently assess risks before investing.
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