Shares of Cello World Ltd declined nearly 4% on Tuesday, November 11, after the company reported its financial results for the second quarter of FY26 (Q2 FY26). The stock fell to Rs 607 on the NSE, compared to the previous close of Rs 631.90, amid investor concerns over a contraction in operating margins.
The company’s consolidated net profit rose 4.9% year-on-year to Rs 85.66 crore, compared with Rs 81.64 crore in the corresponding quarter last year. Revenue from operations grew 19.8% YoY to Rs 587 crore, up from Rs 490 crore in Q2 FY25.
EBITDA for the quarter stood at Rs 128 crore, marking a 7.7% increase over Rs 118 crore last year. However, the EBITDA margin contracted to 21.73%, down from 24.2% a year earlier, as the company faced higher input and operational costs.
Despite steady topline growth, the moderation in profitability weighed on investor sentiment, leading to the sharp intraday decline in the stock.
At the current price of Rs 607, Cello World commands a market capitalization of approximately Rs 49,000 crore.
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