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View Promises →Everest Kanto Cylinder Limited — Q2 FY26
Everest Kanto Cylinder reported Q2 FY26 consolidated revenue of ₹360 crore and EBITDA of ₹42.9 crore (11.9% margin).
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Everest Kanto Cylinder reported Q2 FY26 consolidated revenue of ₹360 crore and EBITDA of ₹42.9 crore (11.9% margin). PAT stood at ₹13.7 crore. The CNG segment faced temporary softness due to BS6 transition in the automotive industry, which has since normalized. Industrial segment performed in line. The US business saw lower dispatches due to order-driven nature. Management guided EBITDA margins of 12-14% for the full year. Expansion at Mundra (₹130 crore spent, ₹30 crore balance) and Egypt (₹86 crore spent, ₹40 crore balance) is on track, with Egypt trial production expected by January 2026 and Mundra by March 2026. Combined order book is ₹1,000 crore executable over 12 months. Risks include GST litigation and potential forex penalty recurrence.
एवरेस्ट कांटो सिलेंडर ने दूसरी तिमाही में 360 करोड़ रुपये की कमाई और 42.9 करोड़ रुपये का मुनाफा (11.9% मार्जिन) बताया। शुद्ध मुनाफा 13.7 करोड़ रुपये रहा। सीएनजी कारोबार में कमजोरी थी क्योंकि ऑटो उद्योग नए उपकरणों (BS6) पर शिफ्ट हो रहा था, लेकिन अब यह सामान्य हो गया। औद्योगिक कारोबार ठीक रहा। अमेरिका में ऑर्डर मिलने पर ही माल भेजा गया। कंपनी को पूरे साल 12-14% मार्जिन की उम्मीद है। मुंद्रा (130 करोड़ खर्च, 30 करोड़ बाकी) और मिस्र (86 करोड़ खर्च, 40 करोड़ बाकी) में विस्तार चल रहा है। मिस्र में जनवरी 2026 और मुंद्रा में मार्च 2026 तक ट्रायल उत्पादन शुरू होगा। कुल ऑर्डर 1,000 करोड़ रुपये का है, जो 12 महीने में पूरा होगा। जोखिमों में जीएसटी विवाद और विदेशी मुद्रा जुर्माना शामिल है।
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GST litigation uncertainty
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Order Book (Combined)
₹1,000 crore
N/A
Total order book across all locations, executable over next 12 months.
US Order Book
$80 million
N/A
Order book for US operations, execution timeline 12-18 months.
Standalone Capacity Utilization
70%
N/A
Current utilization rate for standalone business; potential to increase by 20%.
Egypt Plant Capex Spent
₹86 crore
N/A
Capital expenditure incurred on Egypt plant; balance ₹40 crore remains.
What Changed vs Last Quarter
NEW
EBITDA margin guidance of 12-14% for FY26
Management expects full-year EBITDA margins to be in the range of 12-14%.
NEW
Mundra plant commercialization by March 2026
The Mundra plant is expected to be commercialized by March 2026.
NEW
Revenue target of ₹900-2,000 crore for standalone
Management indicated a revenue target range for standalone business, though exact figure was unclear.
UPDATED
Egypt plant trial production by January 2026
The Egypt facility is expected to begin trial production by January 2026.
DROPPED
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.
DROPPED
India revenue growth of 10-15%
Management guided for 10-15% revenue growth in India business for FY26.
DROPPED
Mundra plant commercial production by Q4 FY26
The Mundra facility is expected to start commercial production just before the close of FY26.
NEW RISK
GST litigation uncertainty
The company has received GST demands and is awaiting government response; outcome and timeline are uncertain.
NEW RISK
Forex penalty recurrence
A ₹11 crore penalty was incurred for shortfall in net foreign exchange earnings; similar penalties may arise in future assessments.
NEW RISK
Margin pressure from product mix
Gross margins declined due to lower volumes in high-margin products; mix shift could continue to pressure margins.
RISK GONE
GST contingent liability of ₹352 crore
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.
RISK GONE
UAE business headwinds
The UAE business is facing certain headwinds and is expected to remain moderate in the coming quarters.
RISK GONE
Margin sustainability in India
India 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.
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Guidance and risk preview
Management expects full-year EBITDA margins to be in the range of 12-14%.
The company has received GST demands and is awaiting government response; outcome and timeline are uncertain.
View Risks →