Everest Kanto Cylinder FY26 Annual Earnings Summary
3 quarters covered · ₹1,112 Cr revenue · ₹101 Cr PAT · 14.7% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Risks flagged during the year
The company faces a GST dispute with a contingent liability of ₹352 crore, roughly 30% of net worth. Management is confident of a favorable outcome but hearing date is not yet fixed.
Q2 FY26 · highThe company has received GST demands and is awaiting government response; outcome and timeline are uncertain.
Q1 FY26 · mediumThe UAE business is facing certain headwinds and is expected to remain moderate in the coming quarters.
Q1 FY26 · mediumIndia margins improved sharply to 17.2% in Q1, but management guided for a more conservative 13-14% going forward, indicating the high margin may not be sustainable.
Q2 FY26 · mediumA ₹11 crore penalty was incurred for shortfall in net foreign exchange earnings; similar penalties may arise in future assessments.
Q2 FY26 · mediumGross margins declined due to lower volumes in high-margin products; mix shift could continue to pressure margins.
Q3 FY26 · mediumUAE operations remain subdued; management expects break-even only at 10% higher revenue, with no clear timeline for recovery.
Q3 FY26 · mediumMargins are influenced by product mix each quarter; a shift toward lower-margin products could compress profitability.
Q3 FY26 · lowThe company has an ongoing GST case in India with no update or timeline for resolution, posing potential financial risk.
What changed through the year
Q1 FY26 · India business margins to sustain at 13-14%
Management expects India EBITDA margins to be in the range of 13-14% on a conservative basis, though they strive for higher.
Q1 FY26 · India revenue growth of 10-15%
Management guided for 10-15% revenue growth in India business for FY26.
Q1 FY26 · Mundra plant commercial production by Q4 FY26
The Mundra facility is expected to start commercial production just before the close of FY26.
Q1 FY26 · Egypt plant trial production in Oct-Nov 2025
Egypt plant will begin trial production in October-November 2025, with commercial production in the following 2-3 months.
Q2 FY26 · EBITDA margin guidance of 12-14% for FY26
Management expects full-year EBITDA margins to be in the range of 12-14%.
Q2 FY26 · Egypt plant trial production by January 2026
The Egypt facility is expected to begin trial production by January 2026.
Q2 FY26 · Mundra plant commercialization by March 2026
The Mundra plant is expected to be commercialized by March 2026.
Q2 FY26 · Revenue target of ₹900-2,000 crore for standalone
Management indicated a revenue target range for standalone business, though exact figure was unclear.
Q3 FY26 · Consolidated EBITDA margin sustainable at 15-17%
Management expects consolidated EBITDA margins to remain in the 15-17% range going forward, supported by product mix and cost discipline.
Q3 FY26 · Revenue growth target of 15-20% for FY27
The company targets 15-20% revenue growth in FY27, driven by new capacities and demand recovery.
Q3 FY26 · Egypt facility to commence operations by May 2026
The Egypt plant is expected to start production by May 2026, with first-year revenue potential of ₹50-60 crore.
Q3 FY26 · US capacity expansion to add ₹100 crore revenue by FY28
A $5.5 million capex in the US subsidiary, backed by customer contracts, is expected to generate incremental revenue of ~₹100 crore by FY28.