Financial Performance Overview

Q4 FY26 Performance:

  • Revenue: INR 653.6 crores (11% YoY growth from INR 588.8 crores in Q4 FY25)
  • EBITDA: INR 136.6 crores
  • EBITDA Margin: 20.9%
  • PAT: INR 90.1 crores
  • PAT Margin: 13.8%

FY26 Full Year Performance:

  • Revenue: INR 2,323.7 crores (8.8% YoY growth)
  • EBITDA: INR 526.4 crores
  • EBITDA Margin: 22.7%
  • PAT: INR 331.5 crores
  • PAT Margin: 14.3%
  • Cash Flow from Operations: INR 255.1 crores
  • Debt-to-Equity Ratio: 0.01
  • Capex Incurred: ~INR 219 crores

Segment-wise Performance

Revenue Mix (Q4 FY26):

  • Consumerware: 66.4% of total revenue (INR 434 crores, 7% YoY growth)
  • Writing Instruments: 19.6% of total revenue (INR 128 crores, 64% YoY growth)
  • Moulded Furniture & Allied Products: 14% of total revenue (13.5% YoY decline)

Gross Profit Margins by Segment (Q4 FY26):

  • Writing Instruments: 47.8%
  • Consumerware: 47.8%
  • Moulded Furniture: 39.5%

Channel-wise Revenue Distribution:

  • General Trade: 75.4%
  • Online Sales: 9.5%
  • Export: 7.6%
  • Modern Trade: 7.5%

Strategic Initiatives and Operational Updates

Manufacturing Capacity Expansion:

  • Steel bottle production: 2 lines operationalized in Q4 FY26, 4 additional lines commissioned in Q1 FY27, 2 more lines to commission shortly
  • Expected gradual ramp-up in steel bottle production over Q1 and Q2 FY27
  • Peak revenue capacity from current steel bottle lines: ~INR 300 crores

Glassware Segment:

  • Utilization levels: 60%
  • Impacted by dumping of imported glass products from China
  • Operating at breakeven levels
  • Peak revenue potential: ~INR 300 crores
  • Peak EBITDA margin potential: 28-30%
  • Actively engaging with authorities for protection against dumping

Merger Completion:

  • Composite scheme of arrangement among Wimplast, Cello Consumer Products Limited and Cello World became effective from May 27, 2026
  • Appointed date: April 1, 2025

Cello Pens Acquisition:

  • Acquired Cello writing instruments brand (deal completed November 2025)
  • Full control achieved by December 2025
  • Contributing to writing instruments revenue from Q4 FY26 onwards

Guidance and Outlook

FY27 Expectations:

  • Revenue growth: 10-12%
  • EBITDA margin improvement: 2-2.5% over current levels
  • Capex: ~INR 100 crores
  • Writing instruments revenue target: INR 500+ crores

Q1 FY27 Challenges:

  • Expected softness due to Middle East crisis impact
  • Rising raw material prices (12-20% MRP increases taken across product lines)
  • Subdued demand environment

Management Commentary Highlights

Market Conditions:

  • FY26 represented a phase of temporary consolidation
  • Demand environment remained dynamic throughout the year
  • First half witnessed better momentum supported by healthy festive season
  • Demand moderated in second half

Corrective Initiatives Implemented:

  • Rationalization of product portfolio
  • Realignment of distribution strategy
  • Enhancement of operational efficiencies
  • Commissioning of new manufacturing lines

Specific Segment Challenges:

  • Hydration segment subdued due to stock-outs in insulated steel products
  • Storage, houseware and cleanware had moderate growth due to slow consumer demand
  • Electric kitchenware demand surged in March leading to complete inventory liquidation

Working Capital Management:

  • Target to reduce receivable days to less than 100 days (currently higher due to government orders)
  • Measures include better channel inventory checks, helping distributors liquidate stock, and product rationalization

Q&A Session Key Points

Capacity Ramp-up Timeline:

  • Steel bottle production scaling up gradually, expected full scale by July 2026
  • Revenue impact in FY26: ~25% drop in steelware sales

Margin Pressure Factors:

  • Glassware growing without profits
  • Steelware margin compression of 5-6% due to switching from Chinese imports to more expensive OEMs
  • Appliances segment growth at lower margins
  • Cello Pens acquisition initially dilutive to margins

Competitive Landscape:

  • New competition emerged in Opalware segment about 6 months back
  • Limited capacity left in Opalware, focusing on exhausting current capacity before expansion

Cash Utilization Strategy:

  • Preserving cash for inorganic opportunities in adjacent segments with synergies
  • No plans for buyback currently