Cello World Ltd (NSE: CELLO) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Gaurav Pradeep Rathod — Managing Director
Atul Parolia — Chief Financial Officer
Analysts:
Manan — Analyst
Vaidik Bafna — Analyst
Praveen Sahay — Analyst
Bhavin Rupani — Analyst
Natik — Analyst
Sucrit Patil — Analyst
Aniruddha Joshi — Analyst
Karan Bhatelia — Analyst
Deepesh J. Sancheti — Analyst
Vaishnavi Gurung — Analyst
Akhil Parekh — Analyst
Presentation:
operator
Sa. It. Sa. Sam. Sa. It. Sam. Sadies and gentlemen, good day and welcome to seller world Q3FY26 con call hosted by ICICI Securities Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Manon from ICICI Securities Limited. Thank you. And over to you sir.
Manan — Analyst
Thank you. Good morning ladies and gentlemen. On behalf of ICICI securities we welcome you all to Q3 and 9 month FY26 results. Conference call of Selloworld Limited. Today we have with us senior management represented by Mr. Gaurav Rathore, Joint Managing Director and Mr. Atul Parulia, CFO. Now I hand over the call to the management for their initial comments on the quarterly performance. Then we will open the floor for Q and A session. Thank you. And over to you, Gaurav sir.
Gaurav Pradeep Rathod — Managing Director
Thank you. Mana. Good morning everyone and a very warm welcome to our company’s earnings call. Joining me is our CFO Mr. Atul Parolia and our Investor Relations Advisor HGA. The results and presentations are available on the Stock Exchange and on our website. I hope you had a chance to review them. During Q3 financial year 26, the demand environment remained mixed. While we saw a healthy momentum in October, demand softened meaningfully in December making it a relatively weaker December in recent years. Against this backdrop, we reported revenues of Rupees 553.7 crores with an EBITDA margin of 22.1%.
Additionally, during the quarter we incurred a one time exceptional impact of Rupees 7.4 crores on account of gratuity provisioning pursuant to the implementation of the new labor codes. This was a nonrecurring adjustment and has impacted profitably for the quarter. In quarter 3, financial year 26, our Consumerware segment recorded a marginal decline in sales primarily due to availability constraints in our insulated steel portfolio. During the quarter we paid stock out in insulated steel products which led to an approximate 40% quarter on quarter decline in steel revenues. This decline was supply driven and significantly impacted overall consumer revenues.
Had the steelware products delivered the same growth as last year. Last quarter we would have seen a significant growth in revenues for the consumer segment in this quarter due to lower production volumes and suboptimal absorption of fixed cost in steel. We witnessed a higher sales to revenue cost ratio during the quarter, temporarily impacting margins. Importantly, had revenues remained at the last year’s level, the growth would have been approximately 12% year on year. In quarter three of financial year 26, we have commissioned a state of the art fully integrated insulated steel bottle manufacturing plant in Rajasthan.
Two production lines are currently operational with the remaining lines to be commissioned in phases through H1 of financial year 27. We expect the steel business to progressively ramp up and return to normal revenue levels over the next couple of quarters. I would invite a lot of investors to see this plan because it’s very well done and I think you can gain a lot of confidence from the fact that we’ll be one of the best producers of steel in India. On the glassware side, our glassware business is currently operating at approximately 60% utilization. It continues at this utilization levels because sales is catching up.
We are seeing a ramp up in revenues in this segment, but as we had built some stocks this we are currently utilizing those stocks for revenue generation. We expect the utilization levels of glassware to be at this level for at least the next couple of quarters. While the category continues to face some pressure due to increased dumping from China, the business has reached breakeven and is contributing and is contributing meaningfully to revenue. Profitability from glass will take some time to scale as operating leverage kicks in on the writing instruments segment. The segment reported a top line of 86 crores delivering 11% year on year.
Growth contribution from the CELO brand will start from this quarter and should meaningfully help in increasing revenue in financial year 27. We expect combined revenues north of 500 crores with the Unomax and Celo brand combined and the scalability of this both brands to put together in the next few years is immense and we are looking at a top line of about 1000 crores over the next few years. The moulded furniture category witnessed a 10.6% decline compared to quarter three of financial year 25. This was primarily because of two reasons. One is because of weak polymer prices which impact this category directly and some orders that we had, some government orders that we had last quarter which were not reflected in this quarter on our strategic priorities.
Our priorities remain portfolio rationalization. So we are continuously evaluating our product portfolio using the 8020 principle and continue to basically make sure that we kind of are working towards always kind of rationalizing this product portfolio. Also. Premiumization is another aspect that we are continuously working on. We have kind of increased the mix to about 7 to 8% over time. This we want to take it to about 20%. The channel mix is also evolving digitally. Our revenues now are about 15.7% of the total revenues which is meaningfully gaining a lot of traction. On the profitability side, the softness in profitability as mentioned earlier was driven by lower steel volumes and a one time gratuity impact. This blip is very temporary. As steel volumes normalize, we expect margins to revert to our normalized 22% EBIT over the next two quarters.
On the working capital side, we will tread cautiously over the next two quarters with sharper emphasis on working capital optimization and inventory discipline. This may temporarily moderate revenues but will strengthen our long term stability and return ratios. We remain confident of delivering about 8 to 10% overall growth supported by the steelware ramp up and glassware scaling in the next couple of quarters post which of course the growth will be a lot higher once the steel completely kicks in and the glassware completely scales up. Also the operating leverage should also kick in by then and we should start returning back to our normalized EBIT levels.
With that I would like to hand over to our CFO Mr. Atul Parolia for the financial highlights.
Atul Parolia — Chief Financial Officer
Thank you and good morning to everyone. I will be sharing the financial details for the quarter gone by in quarter three. Financial 26, the company reported revenue of 553.7 crore. EBITDA for the quarter stood at 122.3 crore translating into a beta margin of 22.1%. During the period, the company incurred a one time impact of 7.4 crore due to the implementation of the new labor code. Profit after tax for the quarter was 63.6 crore with a pet margin of 11.5%. Coming to the revenue mix, Consumerware contributed 69.5% of the total revenue followed by the writing instrument at 15.5% while the moderate vanity and allied product accounted for the remaining 15%.
In terms of channel mix, General Trade and Export contributed to 75.2% and 9.1% of the sales respectively. Online sales contributed 10.6% while modern tint accounted for 5.1% of the total sales. From a segment wise margin perspective, that instrument led with a gross Profit margin of 56.7% followed by the consumer way at 50.2% and model furniture at 39.6%. Now coming to the nine month financial year only 26. Performance revenue for the period was rupees 1671 crore. With a year on year growth of 8%. Gross margin level remained healthy at 5 at 51%. EBITDA came at rupee 389.8 crore.
With an EBITDA margin of 23.3%. The company reported a profit after tax of rupee 222.3 crore resulting in a pet margin of 13.3%. With this I would like to open the session for a question and answer.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and 1 and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants. If you wish to ask a question please press star N1. The first question is from the line of Vedik Bafna from Monarch Net Worth Capital limited. Please go ahead.
Vaidik Bafna
Congratulations. So sir, I have two questions. Firstly on the consumerware side can you quantify the growth delivered in the Opelware and the glassware segment on a quarterly basis and for nine months as well. What kind of growth in terms of. Percentage has the company delivered?
Gaurav Pradeep Rathod
Hi. Basically so we do not report our revenue separately. You know we can get on a call after to understand this better. But as I mentioned that in the consumerware segment we saw growth across all our segments except for the Steelware which led to the decline of revenues. Otherwise it would have been a decent growth given the fact that we had a very good growth last quarter. So a lot of the Diwali sales had come in the September quarter having you know. So it would have been a very good quarter had ste not given us a stop out situation.
Vaidik Bafna
Got it sir. Thank you. So that’s it for myself.
operator
Thank you. The next question is from the line of Praveen Sahai from PL Capital. Please go ahead.
Praveen Sahay
Yeah. Thank you for opportunity. Sir, my first question is related to your guidance of last quarter double digit of our revenue growth with the margin of 22 to 23%. So where we are about that because if I look at a Q4 with these guidance looks very high growth in the top line as well as in the EBITDA margin as well. So if you can.
Gaurav Pradeep Rathod
No. So basically as per the thing as I mentioned that if Steelware would have contributed rooted meaningfully in this quarter, this quarter would have been in a double digit kind of a growth overall because our writing instrument segment also saw good growth. And of course molded furniture because of the polymer prices has a direct impact because as the polymer prices go weaker because 62% of the cost of molded furniture is actually polymer. So that is why there we had a slight decline. So overall as I said in the next few quarters the glassware plant also has given us revenue but no profit.
So that of course affects margins temporarily. So as I mentioned that over the next couple of quarters months we regain our entire revenue from steel. And also of course as glassware starts contributing to margins, this margin will return to its normalized level at about 22%.
Praveen Sahay
Is there any guidance number would you like to give?
Gaurav Pradeep Rathod
So over the next two quarters, as I mentioned that over the next two quarters profitability will be a little subdued because it will keep getting better as the steelware plant ramps up. And. But in H1H after H1 I think things should improve drastically and we should return to our normal ratios.
Praveen Sahay
Okay, second questions are related to the Silo brand for writing and stationery. Last, last time you indicated by 28 or so 350 odd crore of a revenue you can generate. So like how much of the revenue you are expecting for 27 because you guided for some around 500 north of 500 crore you are expecting from this segment.
Gaurav Pradeep Rathod
Correct. So I think with put together, you know we will be clocking in good numbers. So upwards of not. Not of 500 crores is a given for next year. In the stationery segment, both brands put together. It could be of course a lot more. We have been evaluating of course we’ve just bought the brand about two months back and that is why you start seeing revenues from this quarter. Having said that you are right that the revenues were about 300 upward of 300 crores per cello. But there were a lot of loss making products in that particular portfolio.
So we will, we have rationalized or we will be continuing to rationalize some of those products which might reduce the overall revenue. But of course even after that the revenues will be, you know, amazing in terms of the writing instruments and we should be upwards of way upwards of 500 crores.
Praveen Sahay
Okay, second question, third questions are related to the GT because this quarter we had seen the general trade has been down. Is it only because of a steel product?
Gaurav Pradeep Rathod
So yes, GT has been down majorly due to steel products. That is the main reason. And also if you see the Diwali impact also was there because last Quarter it was a very good growth in the consumerware segment in GT also and GT seems to have softened a little bit in this quarter. So both impact steel of course is a big impact and also marginally due to the, you know, Diwali being preponed.
Praveen Sahay
Okay. And also I just clarify this. Steel has also impacted our in house manufacturing because that number has significantly down to 63% compared to 77, 75% we used to give in this quarter.
Gaurav Pradeep Rathod
Sorry, I didn’t get your question.
Praveen Sahay
So the in house manufacturing contribution has gone down for this quarter to nearly 63%. Odd. So is that because of ST L availability is a low and that’s impacted.
Gaurav Pradeep Rathod
Our revenue and that is not gone down. I don’t know where you’re getting that number from because it’s about 72% is in house manufacturing and it will only go up as we ramp as we start producing more of the steel bed.
Praveen Sahay
So actually I calculated from your nine month number is 73% and first half is 78%. So if I calculate for the Q3 that is a lower number. So that’s why I’ll ask.
Gaurav Pradeep Rathod
No, actually that that doesn’t match with my number. But of course we will discuss this later. You know we can get on a call and discuss it.
Praveen Sahay
Thank you sir and all the best.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. Before we take the next question, I reminded to all the participants that you may press star N1 to ask a question. The next question is on the line of Bhavyan Rapani from Investec. Please go ahead.
Bhavin Rupani
Yeah. Hi sir. Thanks for the opportunity. So first on Opalware, can you spell out what is the utilization levels for our Opalware plant?
Gaurav Pradeep Rathod
Right now the Opalware is almost. We are at about 85% of utilization at this point of time.
Bhavin Rupani
And any incremental expansion plans over here given that we are running at almost peak utilizations.
Gaurav Pradeep Rathod
No, currently at this point of time we are not. We need to first exhaust capacities to about 100%. Also there is new competition in the market so we are trading cautiously on that side. But yes, of course, you know, as we near complete exhaustion of capacity, you know we will, we will start thinking about it in the next few months.
Bhavin Rupani
And sir, do we have any brownfield optionality at our existing plant in case we look to expand the facility?
Gaurav Pradeep Rathod
Brownfield? No, we are at in glass and Opal. It’s a little difficult to expand, you know, in terms of brownfield. So it’ll have to be a complete greenfield project when it comes to Opal.
Bhavin Rupani
All Right. And one more question on opalware any so what is our aligning timelines over your end capex for realigning for a couple of years from now for open? Yes sir.
Gaurav Pradeep Rathod
Opalware. We haven’t thought about any more capex at this point of time because as I mentioned that because of there is new capacities that have been added in the market. So we’ll have to wait and watch a little bit. But if we do, you know there is, there is going to be a capex about 110 crores is what we look at if we, if we are going to be ever doing it this year.
Bhavin Rupani
Alright sir. And I was asking about the realigning capex so what I am assuming is post two or three years we need realigning of our lines furnaces. Right. So.
Gaurav Pradeep Rathod
Just maintenance capex you’re talking about. It’s not realigning, it is just maintenance Capex is always considered and basically that is not much. That is about 10, 15 crores a year which is the max which is also maintenance for most of our lines.
Bhavin Rupani
All right and one more question on Opal Vesa so basis are channel checks. What we understand is imports in this category has increased over past few years and despite regulations being present. Right. So how is industry working on it and any measures industry has taken to curb this imports?
Gaurav Pradeep Rathod
I think see there is a active anti dumping duty that still exists on Opalware and overall the rise in import is not very significant. It is very, very limited and it is an inferior product that is being imported. So I don’t think we’ve had any real reasons to worry that as an industry as well.
Bhavin Rupani
Got it sir, one more question. Sorry, one more question on Opalware. Just wanted your thought on this. Given competitive intensity is increasing in the space what would be our preference? Volume or margins?
Gaurav Pradeep Rathod
See since we are already at about 85% capacity utilization I think we should be ideally anyone should be focusing on profitability at this point of time until the new capacity gets completely penetrated in the market. So I think that is our priority now. Cost reduction and optimization will be our priority going forward so that our margins are maintained because revenue potential growth is only going to be the 15% capacity that we have left.
Bhavin Rupani
All right, so a couple of questions on glassware. So first glassware. On glassware you mentioned that utilizations will remain at 60% over next two quarters. So just trying to understand is it demand is softer or in technical issues at our plant.
Gaurav Pradeep Rathod
So it’s not anything technical. The idea is that you know the Revenues are ramping up, but of course it takes a little time for revenues to keep going up. Every of course, month on month we are seeing a growth and revenue of the glassware. But since it will take a little time, the potential can be, you know, a lot more as I said from this plant. But until that happens, you know, we will have to keep the utilization levels at about 60%. And also there is stock that has built up which we will also be, you know, which will also be.
We will also be selling in the next couple of quarters post that we will, you know, increase the utilization. So there is no technical challenge. It is the product side, you know, is completely set.
Bhavin Rupani
Perfect. Got it. Sir, I have few more questions. I’ll join back with you. Thank you.
operator
Thank you. The next question is from the line of Natic from NV Elsa Fund. Please go ahead.
Natik
Hi sir, thanks for taking a question. So my first question is you mentioned that there were some supply challenges in steel there. So this was primarily because of the BIS standards coming in and our facility yet to be, yet to come online. Is that the sole reason for the same?
Gaurav Pradeep Rathod
Yes. So BIS had come in about last January. We had built a lot of stocks, so we had about six, eight months of stocks and of course that we’d also procured some products locally through some OEMs. But the kind of product line that we had before when we were importing was pretty large. And we of course are unable to have all of those products today. But yes, as we are going to ramp up our production, these are all products that are going to come back, you know, and that was basically the reason, the main reason the BIS is of course the main reason that we had this situation.
Natik
Right answer. If this was not the case, we didn’t have supply issues and the CV where revenue would have been flat. What’s the growth we would have seen.
Gaurav Pradeep Rathod
In the consumer segment? We would have seen a 12% growth year on year. If it was even the same as last year, if revenues of steel would have stayed the same.
Natik
And so what about the capacity that now we are putting in steel? What is this capacity that we are bringing in?
Gaurav Pradeep Rathod
So we are bringing in about. Currently we have about eight to 10 lines, you know, we have two lines operational. This has revenue potential of up to, you know, upwards of about 300 odd crores for the moment. And it’ll. We can just keep adding lines, we have the facilities. So it’ll just be a brownfield expansion. Post that.
Natik
One clarification I needed on the deal structure of, you know, The Cello Pence brand that we have gotten it back, you know, we would be booking say 200 to 300 crores of revenue in CY26 on the cello brands itself. We’ll be getting the profitability also of the same, you know, but we won’t be paying anything. So I’m just not able to wrap my head around the deal structure. So if you could just, you know, throw some light on this here.
Gaurav Pradeep Rathod
So basically the brand was bought by CPIW which is a promoter group entity and all the brand is housed there and even the Celo brand has been housed there. So CPIW paid for the brand. So there were two deals that had happened. One was the brand deal and one was the asset deal. So we were only involved in the brand deal. You know, the assets were bought by a separate company altogether. So that is why there is no impact because we already had our current facilities, had enough capacities to produce the goods that Celo was selling.
So what we basically only procured was. And we will be procuring, there will be some capex on that as we go along is the molds and we will need some more machines in the next couple of quarters, which I had already guided last time, that there would be a capex of about 50 to 60 crores in this category in the next one year, one full year. So I think that’s how the brand deal was structured and that’s why you’re not seeing any, you know, any payment out for this particular thing.
Natik
But what’s in for the asset owners for this? I mean, I believe we would be producing and running the assets and selling and booking the revenue. Right. For the brand. So Watson, for the asset owners, why would they buy.
Gaurav Pradeep Rathod
I mean the asset owners bought the asset, they bought the land, building everything they will sell at a better price. Maybe that is why they invested.
Natik
At a markup.
Gaurav Pradeep Rathod
They don’t want to hold those, they bought assets and they want to sell assets. So it’s, it’s a asset sale kind of deal for them.
Natik
So you mentioned, you know, the margins in consumer were sort of flattish or down due to steel where revenues not coming in. So I don’t understand, the plan just came in. So how did that affect profitability in consumerware?
Gaurav Pradeep Rathod
So two things. Steelware did not give the revenue. So there was a decline in revenue which was a big revenue decline. So that is why the profitability was not reflected. Secondly, though we grew, a lot of the revenue growth came from glassware which is not profitable at this point of time. Right. It is only Breaking even. So that is the reason why there was a temporary decline in profitability and with steel coming back because steel has just started, the production has just started. So. And also there were a lot of expenses that were done for the plant basically without any revenue generation.
Right. And also the sales team is also in place, but the sales did not happen as much. So basically that is why the expenses increased overall quarter for this quarter and that is why you are seeing a, you know, a slight decline there.
Natik
Okay, got it, sir. Very clear. Thank you so much.
operator
Thank you. Ladies and gentlemen, a reminder to all the participants. If you wish to ask a question, please press star N1. The next question is from the line of secret Tea Patil from Eyesight Fin Trade Private Limited. Please go ahead.
Sucrit Patil
Good morning to the team. My name is Sukrut patil. I have two questions. My first question to Mr. Rathod is beyond the growth outlook. How will Celo World manage risk and uncertainty across its core categories, mainly writing, instruments, stationery, furniture and kitchenware? What strategic choices will help the company stay in trends if the demand or input cost keep on fluctuating? That’s the first question. I’ll ask for a second question after this. Thank you.
Gaurav Pradeep Rathod
So when it comes to, when it comes to input cost, you know, they don’t rise and fall very drastically unless we have situations like Covid where it changes for everyone. And because we are a consumer facing brand, you know, some of those input costs are, you know, possible to the consumer. And I think overall we’ve not had such situations. The risk is very limited when it comes to, you know, input costs. And if it happens, it happens for everyone. And I think that is the reason that, you know, other than that I, you know, there are not many other risks that would completely, you know, you know, have a very major impact.
I don’t know if you’re kind of referring to any other risks that you know. So if there is anything specific, I could answer it in that fashion.
Sucrit Patil
No, in general, I’m just asking. Not anything particularly oriented. Just in general. Any risk that you foresee in the coming days. Just wanted to understand that.
Gaurav Pradeep Rathod
I don’t see any major risks in the coming, you know, quarters. Of course, you know, this is something I can’t foresee. If there is something that happens like a BIS kind of a situation where there is regulatory, you know, problem, then no one, no one can foresee that. So I think whatever we can foresee, of course we can plan for.
Sucrit Patil
My Second question to Mr. Parulia is along the similar lines. Beyond the Margin guidance. How do you manage any financial risk or uncertainty in areas like raw material cost, working capital and capital allocations? What guardrails will ensure earning quality stay stable, you know, even in these volatile conditions? For understand the plan of action and point of view on this. Thank you.
Atul Parolia
In the past, which you have seen actually our profit margin is more or less remain in a range ground actually. And the reason being, as Gauravar said, we have the product mix actually and with the product mix we get the advantage of higher beta pl. And in the future even we don’t see any such risk actually, which we are saying and our best thing is actually a new product as you see a new product. And that gives us the major advantage.
Sucrit Patil
Thank you and best wishes.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. The next question is from the line of Anirudh from ICICI securities Ltd. Please go ahead.
Aniruddha Joshi
Yeah, thanks. So sir, generally whenever the commodity prices move up and down a bit, INR depreciation is also there and the rules related to BIS are also there. So historically it has been observed that in such cases the larger players like Celo end up gaining good amount of market share. So if you can share what has been the market share journey for the steel products and how do you see the market share, let’s say changing over next one, two years? That is question number one. And then question number two, in terms of while there has been a relatively softer growth in the market itself, have you seen any impact on the trade spends especially in the molded furniture segment etc? So, so how should we read in terms of the trade spends, inventory levels in the trade etc.
Any material changes happen to that due to slowdown in the market growth? Yeah, thanks.
Gaurav Pradeep Rathod
You are right that you know, overall as we ramp up our production and you know, before there were a lot of importers, people could import different items. But you know, and that will help overall in the long term as we scale up our production to gain some market share. But also, you know, one thing we should understand is that, you know, when we were importing, we were importing from 20, 30 different companies in the world. And the point was that the kind of diversified range that we could have, we cannot have that anymore. And no one can have that anymore.
So I think that is one reason that we still remain. Of course we remain confident that market share gains will happen because no one now can go and import say a container. But having said that, the range has reduced and to build that range will of course take some time and over the years we will be able to do that. As we scale up our revenues. But yes, possible 100%. This should come in and kick in in the next year. In terms of your second question, I think there is no meaningful change in the channel stock.
I think it remains relatively at the same levels. You know, the primary growth, of course, has softened, you know, for everyone. But at the same time, the secondaries have been at par. So I wouldn’t say that there is a meaningful increase in channel stock.
Aniruddha Joshi
Okay, sure, sir. Second, just from a strategy perspective, Celo operates the business through multiple subsidiaries. Will it be easier in terms of operations as well as from the trade perspective also if all subsidiaries get merged? Because then there can be seamless flow of capital from one segment to other. And even from trade perspective, there will be single billing and single accounting, oral audit. All the expenses can also slightly come down. So is there any thought process on that or the current system of multiple subsidiaries is actually will continue and is more beneficial? Yeah, that’s it.
From my side,
Gaurav Pradeep Rathod
I think for us, multiple subsidiaries have been the way we have been working. That’s how we are structured. Because we don’t want to put the expenses or burden of one company onto the other. And every unit is basically a P and L for us and is basically, you know, one person basically handles it. So overall, you know, while things can get easier, it also kind of, you know, kind of dilutes, you know, the PNL of each and every unit and focus on, you know, unit economics kind of goes away. And that is the reason why we have been structured in the fashion we have structured from a billing point of view.
Actually, Cello Vault has most of the billing and it is kind of one point for most of our customers, except for the glassware side, which is the second billing point. So I think that is not really a major concern or it will not really reduce any further cost. It can just make it easier. That’s. That’s the only thing. But other than that, I think, you know, we are happy with the current structure and would like to operate it this way.
Aniruddha Joshi
Okay, sure. This is very helpful. Many thanks.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. A reminder to all the participants that you may press star N1 to ask a question. The next question is from the line of Karan Bhattalia from amsec. Please go ahead.
Karan Bhatelia
Hi, good morning. Am I audible?
Gaurav Pradeep Rathod
Yes, yes.
Karan Bhatelia
Hi. Gaurav wanted to understand any pricing actions, you know, taken across the portfolio or, you know, how do you see pricing strategies, you know, in the medium term?
Gaurav Pradeep Rathod
So no pricing strategy as such, you know, in an environment like this we are not, as I guided even in the first quarter that some of the expenses had increased but we were unable to pass on. So there is no. But now there is no such pressures. Also that no new pressures I would suggest that will lead to any pricing corrections. Rather we are actually working more on the manufacturing side where we can cut cost and optimize. I think that is the strategy going forward, at least for this, at least for a few quarters.
Karan Bhatelia
Right, right. And on the glassware side, I think we’re slightly behind our targets. You know, fourth quarter earlier we were estimating 80% capacity utilization. And I think no profitability from this vertical will only start once we cross 75%. So how do we see glassware as a portfolio.
Gaurav Pradeep Rathod
For the company is a very long term bet. Once we establish ourselves in this particular product line we have. It’s a tough product line for anyone else to come into. The entry barrier is extremely high. The kind of glass we are producing is I would say today much better than a lot of countries have been able to do. So it’s a very long term bet for us. We are not worried about current profitability. We are more wanting to first gain the market. As I mentioned, there has been a lot of Chinese dumping and this category is going to evolve in the next few months.
Already we are seeing imports getting majorly impacted because of our entry. And as the channel stock also goes down of imports, we see our revenue keep going up and we are actually seeing that. So it’s just that Glasser is a continuous plant. We cannot stop it for 10 years. So that is why we have to tread a little cautiously on the inventory side. And that is why we are not intentionally utilizing more than this for the time being. Once profitability kicks in, once we cross 75, 80%, you know, the upside is very huge and I think we’ll have to be a little patient here.
And you know, the long term, you know, is outstanding for this category.
Karan Bhatelia
Noted. Thanks for this. And on the writing instrument side, one last question from Hind. How is the product portfolio for Pic Celo? Because I believe for us we’re more on the writing side and slightly lower on the other stationary part. And we were ideally wanting to expand that portfolio as well. So Bicylo, how is the split between writing and stationery?
Gaurav Pradeep Rathod
So Bic Sello is actually structured exactly like us. So stationary is a very small part for them as well. Which actually is a fantastic and a very big opportunity for us now going forward by adding these product into Celo which is, which has a much Better brand equity when it comes to stationery. So I think yeah, that way it’s a fantastic opportunity and you know, it opens up a lot of doors because.
Karan Bhatelia
We did launch a few stationary products like new markers, crayons, geometry boxes, mechanical pencils. So how is the ramp up there? How is the market reacting to our station wear conditions?
Gaurav Pradeep Rathod
I think, I think while we have introduced all of these, it has been not a very, very big ramp up there with the Onomax brand. What we are now going to start doing is have those similar kind of products in the Celo brand. And I think with the Celo brand the scale up will be a lot faster.
Karan Bhatelia
Right. And on CapEx brand, 150 crores for this year and 75 crores for next year or anything incrementally could be seen.
Gaurav Pradeep Rathod
So maintenance capex is going to be at about 75 odd crores. 75 to 100 crores. Apart from that, there will be slight Capex in, in the writing instruments.
Karan Bhatelia
Right. So correct to assume 160 for both the years. 26, 27.
Gaurav Pradeep Rathod
Maximum. Yes, maximum. That is the upper limit.
Karan Bhatelia
Yeah, yeah, that’s.
operator
Thank you. Anyone who wishes to ask a question may Press Star and 1. The next question is from the line of Deepesh J. Sancheti from Manya Finance. Please go ahead.
Deepesh J. Sancheti
Hi Gaurav. Congratulations on acquisition of Celo brand. Wanted a question, wanted to answer about, you know, what do you think will be the growth driver and will it be fair to assume that writing instruments will be the growth driver for the next two years?
Gaurav Pradeep Rathod
So I think for us growth drivers are two glassware and writing instruments. Both are, you know, glassware, of course the potential is very huge and we will try to reach about 80% odd capacity by the end of the next year. And in writing instruments, of course with the acquisition of Celo, we are now looking at fantastic numbers for this year and of course as I mentioned before, it opens up a lot of doors for a lot of other stationary items. So yeah, these two pillars are going to be very important for us in the next year.
Deepesh J. Sancheti
Right. And since we are already planning Capex, you mentioned that we already planning Capex in the writing instruments. Wouldn’t it have been better that if we would have acquired the assets of Big also Big Sello that time and instead of, you know, having additional capex, I mean if you can just give a comparison that what was the, you know, what was the advantage of doing a fresh capex rather than not acquiring the assets?
Gaurav Pradeep Rathod
A lot of this Capex is actually acquiring some of Those assets of Big Cello, which is some of the molds and machines, what we did not require is the land and building which was the bigger asset. Right. The other are smaller assets and a lot of their machinery was very, very old. So I think we did not see any, you know, advantage in kind of acquiring them because they would run very inefficiently. So that is why some of that capex is going to be in the newer machines and newer molds.
Deepesh J. Sancheti
Right. Great. Just a last question about the Vimplus merger. Since all the regulatory approvals are almost done. When do you see that this merger will finally happen? If you can give a timeline to it or date to it.
Atul Parolia
See in the bundle final hearings is there is around the last week of the fair and thereafter once we get the approval, then everything is set, then we will in the process of purchasing the thing. I mean already as you know, upunder date is 1st April 2025. So definitely it will be from that date itself. But maybe around two, three months time we will see all that get through.
Deepesh J. Sancheti
So. But so by first quarter, in the first quarter of FY27, we should be done with this.
Gaurav Pradeep Rathod
Yes, yes, for sure.
Deepesh J. Sancheti
Great, great. All the very best.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. Participants who wish to ask a question may press star N1 at this time. The next question is from the line of Vaishnavi Gurung from Craving Alpha Wealth Fund. Please go ahead.
Vaishnavi Gurung
Yeah, hi. Thank you for the opportunity. Am I audible?
Gaurav Pradeep Rathod
Yes, yes, absolutely.
Vaishnavi Gurung
So my first question is on the steelware segment. If you can help us with what is the total contribution of steelware to the consolidated revenue? And I wanted to understand will the ramp up of the new steel plan still impact the revenue and margins or will build a third party sourcing will continue having an impact. Just wanted to have a future outlook.
Gaurav Pradeep Rathod
So I think we do not give out numbers separately for the steel bear. Basically of course the steel wear as I mentioned is a a significant component of our revenues in the consumer segment and has taken an impact in this quarter going forward. I think of course as we ramp up our production and reduce our OEM supplies, we should see a meaningful growth in revenue and margins. So I think at least we should return back or actually better the margin that we had before while we were trading.
Vaishnavi Gurung
Expect this impact to happen the next two, three quarters or we expect the.
Gaurav Pradeep Rathod
Impact will be in phases. The impact as we scale up, you know, over the next two quarters, the impact will of course the full impact will be, you know, only in H2 of next year. But you will Start seeing some impact over the next two quarters.
Vaishnavi Gurung
We may see some subjected growth in the next two quarters too. From this segment
Gaurav Pradeep Rathod
we might not see. Growth because a lot of the product lines we are out of stock. So we will be just fulfilling those in terms of our revenue. We will only be fulfilling, we might not reach complete revenue potential until the end of the first half of next year.
Vaishnavi Gurung
Okay sir, I just wanted to have an outlook on the moulded furniture segment. Will this current scenario of lower prices have an impact in the coming quarters too?
Gaurav Pradeep Rathod
So I think if the polymer prices continue to be weak, you know there will be a slight impact because as you know it is completely directly proportional to polymer prices and any decrease kind of decreases revenue, any increases revenue. So I think this will continue to be a trend in wimplast and you know, that is why we have always guided for a low single digit number growth in the wimplast side.
Vaishnavi Gurung
Do we not have any hedge in place to mitigate this risk?
Gaurav Pradeep Rathod
No, there is no mitigation that is possible here because you know that polymer prices is not something that I can control.
Vaishnavi Gurung
Okay, thank you for taking your question. I’ll join back with you.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you. The next question is from the line of Akhil Par from BNK Securities. Please go ahead.
Akhil Parekh
Hi, thanks for the opportunity. My first question is based on the commentaries now we have given across the product categories and given the software base we have in FY26, would it be fair to assume that our growth rate in FY27 can be between 15 to 18% and the margin profile going back to 23% plus? That’s my first question.
Gaurav Pradeep Rathod
So I think basically, you know, because of couple of more quarters we will take to come back in terms of our steel wear. But overall the first half could be a little more muted at about 8 to 10%. But post that you will see significant growth in terms of revenue and margins coming back to about 22%. Our first priority is to have margins back which will happen over the next couple of quarters and post that you’ll see more growth. So as the quarters go by, I will keep guiding. Currently what I’m guiding is for the next couple of quarters is what I can foresee is about 8 to 10% growth.
Given the fact that steelware will still be under pressure a little bit.
Akhil Parekh
Sure this is helpful. And just a second question on the opalware and the steel, right? And the peak utilization rate, what kind of sales turnover both these categories can do?
Gaurav Pradeep Rathod
So Opalware at its speed can do about 400 to 410 crores of revenue at its peak.
Akhil Parekh
Okay. And about steel.
Gaurav Pradeep Rathod
Steel current capacity will go up to about 300 crores. With additional capex, which is not a lot. We can keep adding machine because the facility is completely built. The other capex post, that will not be much even if you want to add capacities.
Akhil Parekh
Okay. Okay. And so if I missed the margin profile of the steel category, is it. Is it in line to the openware or it is below openness category?
Gaurav Pradeep Rathod
It is in line slightly lower always. It has been since we were trading. As we scale up our production, this could improve, you know, but currently it will stay a little lower as it has always been then open.
Akhil Parekh
Okay, sure. This is helpful. Thanks a lot.
Gaurav Pradeep Rathod
Thank you.
operator
Thank you, ladies and gentlemen. We will take that as the last question for today. I now hand the conference over to the management for closing comments.
Gaurav Pradeep Rathod
Great. Thank you everyone for being on the call. You know, I think exciting times for us ahead with two fantastic categories, stationery and glassware, which is going to ramp up in the next few quarters. And you know, we look forward to the next few quarters and you know, hopefully we’ll have a. We will have a much better year this coming year. Right? Thank you so much. Thanks again.
operator
Thank you very much on behalf of ICICI securities limited that concludes this conference. Thank you all for joining us today. And you may now disconnect your lines. It.