Cello World FY26 Performance: Revenue Up, Profit Down Amid Scheme Effective
Cello World Ltd announced its audited financial results for the fiscal year ending March 31, 2026. Consolidated revenue from operations grew by 8.77% to ₹2,323.71 crore, up from ₹2,136.39 crore in the previous year. Despite this revenue increase, consolidated profit after tax saw a decline of 9.07%, falling to ₹331.51 crore from ₹364.57 crore in FY25.
On a standalone basis, revenue from operations showed marginal growth of 0.26%, reaching ₹1,115.50 crore from ₹1,112.63 crore. Standalone profit after tax decreased more significantly, by 27.89%, to ₹80.49 crore, compared to ₹111.62 crore in FY25.
Dividend and Scheme of Arrangement
The company's Board has proposed a final dividend of ₹1.50 per equity share for FY 2025-26, pending shareholder approval. Additionally, the Composite Scheme of Arrangement officially became effective on May 27, 2026. The appointed date for the scheme was April 1, 2025, and June 9, 2026, has been set as the record date for share allotment.
Performance Insights
The results reflect a mixed performance for the year. While consolidated revenue growth indicates sustained business activity, the decline in profits, both consolidated and standalone, signals potential pressure on margins or other financial factors. Investors will note exceptional items related to the incremental impact of new Labour Codes on retiral benefits, which amounted to ₹1.98 crore standalone and ₹7.44 crore consolidated, affecting the net profit figures.
Integration and Future Outlook
The effectiveness of the Scheme of Arrangement signals that the integration process with Wim Plast Limited (WPL) is proceeding, with share allotment to follow. Moving forward, investors will closely monitor the progress of this integration and its impact on future financial performance. The company's ability to manage costs and enhance profitability in the upcoming quarters will be a key focus.
Key Metrics at a Glance:
- Consolidated Revenue: ₹2,323.71 crore (FY26) vs ₹2,136.39 crore (FY25) - +8.77% change.
- Consolidated Profit After Tax (PAT): ₹331.51 crore (FY26) vs ₹364.57 crore (FY25) - -9.07% change.
- Standalone Revenue: ₹1,115.50 crore (FY26) vs ₹1,112.63 crore (FY25) - +0.26% change.
- Standalone PAT: ₹80.49 crore (FY26) vs ₹111.62 crore (FY25) - -27.89% change.
- Final Dividend Proposed: ₹1.50 per share.
- Scheme of Arrangement Effective Date: May 27, 2026.
- Record Date for Allotment: June 9, 2026.
