Business Overview:
Cellecor Gadgets Limited (NSE-SME: CELLECOR) is one of India’s fastest-growing homegrown consumer durables and electronics brands. Originally started as a mobile accessories brand ~13 years ago, Cellecor has expanded into a comprehensive portfolio covering smartphones, laptops, home and kitchen appliances, smart gadgets, audio devices, and IT/mobile accessories. The company operates on an asset-light model through partnerships with leading OEMs (Dixon, PG Electroplast, etc.), aligning with the “Make in India” and “Atmanirbhar Bharat” initiatives. It was listed on the NSE Emerge platform in September 2023.
Home & Kitchen Appliances: ACs, Refrigerators, Coolers, Geysers, Microwaves, Deep Freezers, Small Appliances.
IT and Mobile Accessories: Chargers, Powerbanks, Cables, etc.
New Growth Initiatives: B2B corporate sales, institutional orders, and expansion into new home appliance categories.
Distribution Channels:
Cellecor operates through a multi-channel strategy:
Offline Sales (~91% of revenue): 1,800+ distributors, 65,000+ retailers, and 7 exclusive brand stores.
Online Sales (~9% of revenue): Amazon, Flipkart, JioMart, Myntra, Ajio, and ONDC platforms.
Organized Retail: Tie-ups with Sathya Mobiles, Sangeetha Mobiles, PhoneWale, B New Mobiles, and others.
Financials (FY25):
Revenue: ₹1,025.95 Cr (up 105% YoY)
EBITDA: ₹54.29 Cr (up 83% YoY)
PAT: ₹30.90 Cr (up 92% YoY)
EBITDA Margin: 5.3%
PAT Margin: 3.0%
Cash and Equivalents: ₹21.76 Cr; Debt: ₹120.89 Cr
Free Cash Flow: Negative ₹64 Cr (due to inventory buildup; expected to turn positive in FY26)
Current Business Strengths:
600+ SKUs covering high-growth consumer segments.
400+ employees, 2,000+ service centers across 20,000+ pin codes (tie-up with Jeeves Consumer Services for appliance servicing).
Strong brand ambassadors: Varun Dhawan, Kareena Kapoor Khan, Tamannaah Bhatia.
Recognized by The Economic Times, Business World, and Times Group as a top consumer electronics brand.
Key Growth Triggers:
Strong revenue visibility with planned expansion into untapped Tier-2, Tier-3, and rural markets.
Foray into new product segments (e.g., microwaves, air fryers, commercial coolers) to tap higher wallet share.
Launch of aggressive marketing campaigns from FY26 to boost brand recall.
Expansion of exclusive Cellecor stores and deeper presence in large format retail (LFR) chains.
Growing B2B and corporate sales verticals through participation in government tenders and rate contracts (GeM platform).
Strengthening D2C (direct-to-consumer) platform and e-commerce sales through broader product listings.
Capacity expansion via new warehouse additions and supply chain automation for faster, cost-effective deliveries.
Focus on scaling local manufacturing and R&D to improve margins and reduce import dependency.
Future Outlook:
Targeting ₹1,500+ Cr topline by FY26 (~50% growth).
PAT targeted at ₹50 Cr by FY26 (margin expansion expected).
Plans to raise ~₹100 Cr to fund expansion through a mix of internal accruals and external financing.
Focus on expanding into Tier-2, Tier-3 cities, deeper entry into LFRs and e-commerce, scaling B2B sales, and new product launches.
Aggressive marketing and brand visibility drive starting FY26 to accelerate brand recognition.
Key Risks:
Inventory and working capital buildup can impact near-term cash flows.
Margin pressures in a competitive, price-sensitive consumer durables market.
Disclosure:
I am not a SEBI-registered advisor. This post is for educational purposes only and not a stock recommendation. Please do your own research before investing.
Yes, rising working capital and negtive cashflows are an issue. Additionally, the company has been raising funds (via increased debt or equity dilution).
Btw, as per Mar’25 financials the company is a Rs 1,000cr brand now. Has anyone ever tried their products or saw someone using their products?
Electricals and Mechanicals are rapidly becoming electronics. Look around — everyday products are increasingly “smart,” but meaningful differentiation is vanishing. A good example is the flood of AC advertisements during IPL, where brands are spending crores on TVCs, all trying to ride on buzzwords like “Smart,” without offering any true innovation.
In the world of electronics, Technology Leadership, not just distribution strength or short-term margin management, is what drives lasting success. And true tech leadership demands deep, sustained investment in R&D — an area where India continues to face structural headwinds due to a relatively weak ecosystem.
Market hype can create noise for a while, but without standout products, brands fade. Think back to Micromax and Lava in 2015–16, or the wearables and audio brand explosion around 2022–23 — most of those names are either struggling or have disappeared.
In the last few years, there’s been a lot of excitement around companies leveraging PLI schemes and geopolitical shifts, but the critical question is: Are these advantages real moats, or just temporary tailwinds?
Specifically for Cellcore Gadgets —
Their Annual Report does not convincingly detail any strong focus on R&D or innovation.
Most products appear to be sourced from China, suggesting limited technological differentiation.
Their strength seems built on distribution, celebrity marketing, and government incentives — but not on fundamental product innovation.
Is this the foundation for long-term wealth creation? I have my doubts. I would urge investors to dig deeper and do thorough homework before making any long-term commitments.
Their initial set of low cost products like smart watches, mobiles and accessories were definitely cheap china imports (but there is a market for these too in Tier 2 cities).
HOwever their new line of products like AC, Coolers, Fridge, Watching machines etc are being manufactured in India by likes of Dixon etc.
Having burnt my fingers with a lot fraudulent companies like Gensol etc. There are some red flags in Cellecor. Its bigger products (like TVs and Washing Machines etc) are not available on platforms like Amazon (only 1 or 2 sample products are posted there). Its products are not available in physical stores (atleast in the South side). Also, recent ED raids on its Promoter and its offices doesnt present a clean governance image as well.
Hey Bruce, Their presence is low currently and as they started, they are still a tier 2/3 brand only. You will find them more in small 200-500 Sq ft electronics stores in smaller towns and not much in big and fancy stores. By having bigger stars as brand Ambassadors, they may be able to portray themselves as bigger, better and advanced brands amongst other small electronics company.
Another small ecommerce player has Cellecor’s Washing machine, Fridge, Cooler, Phones, heaters, Trimmers, headphone , TV, Battery bank, Laptop, Gyser, Mixer, Juicer, AC listed. Website’s reviews arnt too great 3.2… Posting this just to share they actually have retailers. NOt commenting upon their strategy to sell in smaller tons or not being able to crack bigger retailers - Search: 144 results found for "Cellecor" – Dpanda Store
Also, posting some screenshots from Insta showing actual stores and sales . Most interesting is a big house in rural / Tier 2 India, getting delivery of 5-6 Cellecor AC’s
While this is great for company’s brand visibility, we need to understand the overall impact of these offline stores, which is the part of company’s strategy to increase its offline presence and become a D2C focused company.
there can be many reasons, one reason I foresee is by expanding distribution network, they may have given goods on credit. Better would be to wait for Annual report or send a note to investors relation.
From latest filing by company - promoters will be selling 5% of their stake in open market and will reinvest the ENTIRE PROCEEDS from sale back into the company by issuing fresh equity and interest free - unsecured loan to company. How do you guys read this?
With this sale, their stake will be under 45% now.
They could have sold equity equivalent to the loan amount they wish to give and retained remaining stake (bec they will be going for fresh equity issuance anyhow)
Why they waited for stock to fall from 80’s to 39 before selling their 5%. This is a massive loss of 40 crore for them (they could have got 100% more money if sold at 80 or late 70’s price) - I wudnt buy the logic that share prices are not in promoters hand. We have seen high volatility just after & before result announcement in last 2 quarters.
Exactly, I would found this very weird.
The are selling shares to raise capital for the company.
“The entire proceeds will be reinvested into the company in the form of equity and interest-free unsecured loans”
Interest free unsecured loans part is great, promoters looking after the company.
But the equity part didn’t resonate well.
Would have been better if they specified the form of reinvestment.
If it is just interest free loans, then it is amazing
If it is warrants or convertible debt, then equity will get further diluted when these are exercised. In this case, it would probably be better to just raise capital via debt, as at such low share prices, debt would definitely be cheaper than equity.
They could have sold equity equivalent to the loan amount they wish to give and retained remaining stake (bec they will be going for fresh equity issuance anyhow)
They require significant working capital and are probably uncertain how much they would need. As this kind of business is heavy in capital and also uncertain.
So they may have sold the stake at once and probably do fresh equity issuance once they would be certain that they have cash in hand
Why they waited for stock to fall from 80’s to 39 before selling their 5%. This is a massive loss of 40 crore for them (they could have got 100% more money if sold at 80 or late 70’s price) - I wudnt buy the logic that share prices are not in promoters hand. We have seen high volatility just after & before result announcement in last 2 quarters.
Could be many reasons:
Results were good, they may have anticipated that price will remain there or not fall much. They may be promoters but can’t control or predict the stock price.
They could have not anticipated the cash requirement and now feeling that they may need it with all the new launches , aggressive targets, buy inventory, deals etc.
We should understand it still an sme . 5% stake at 80 was huge and they may not find any buyer to absorb those. Now the prices are much lower they can may find some big buyers interested as well
They may have waited as there was not much capital requirements then and to sell they have to wait for the FY25 results to be announced.
I think we should collectively or if someone is in touch with promoters/IR should try to get these folks on a public concall. They have now been listed for around 2 years and it is just right time to be more investor friendly.
. Most interesting is a big house in rural / Tier 2 India, getting delivery of 5-6 Cellecor AC’s
