Everest Kanto Cylinder LimitedQ1 FY27 Results & Financial Update
Everest Kanto Cylinder Limited: Q1 FY27 consolidated results and company financials – revenue ₹346.31 Cr, PAT ₹30.16 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Everest Kanto Cylinder price & chart
Quarter overview
Quarterly earnings analysis
The company generated a consolidated profit after tax (PAT) of Rs. 30.16 crore, representing a PAT margin of 9% for the quarter, and diluted earnings per share (EPS) of Rs. 2.68.
Operating performance during the period was shaped by steady underlying domestic demand across CNG and industrial gas applications in India, contrasted by softer performance and weaker profitability within international subsidiaries.
Total quarterly expenditure included cost of materials consumed (COGS) of Rs. 163 crore, employee benefits expense of Rs. 47 crore, and other expenses of Rs. 89 crore.
The year-ago comparative quarter (Q1 FY26) included an exceptional gain of Rs. 12.6 crore representing an Employee Retention Credit (ERC) received by US subsidiary CP Industries from the US Internal Revenue Service, which makes direct year-on-year bottom-line comparisons subject to that base effect.
Profitability for the first quarter was marked by softer absolute earnings compared to a year ago, when results were bolstered by an exceptional item. Consolidated EBITDA reached Rs. 47 crore, translating to an EBITDA margin of 14 percent, which compares to Rs. 61 crore and 16 percent in Q1 FY26. Management noted that the contraction reflected weaker profitability in overseas operations alongside temporary supply-side and operating constraints.
01 · Business model
What does Everest Kanto Cylinder do?
Everest Kanto Cylinder Limited (EKC) is a clean energy solutions company and a leading global manufacturer of seamless steel gas cylinders, with over 45 years of operational history since its establishment in 1978.
The company's product portfolio spans industrial, CNG, medical, fire safety, jumbo, and composite cylinders designed for high-pressure storage of gases such as oxygen, hydrogen, nitrogen, argon, helium, and compressed natural gas.
EKC operates a global manufacturing footprint consisting of six facilities—three in India (Tarapur, Kandla SEZ, and Mundra) and three international plants (Jebel Ali Free Zone in Dubai, Pittsburgh in the USA, and Egypt)—delivering an aggregate annual capacity of approximately 1.8 million cylinders.
Its cylinders serve diverse end-user sectors including manufacturing, automotive (CNG vehicles), aerospace and defence, medical establishments, and specialised clean energy applications such as compressed biogas (CBG) and hydrogen storage.
02 · Historical context
What shaped the business before this quarter
EKC was established in 1978 and has built over 47 years of operating experience as a prominent manufacturer of high-pressure seamless steel gas cylinders.
Over the past four decades, the company has established six manufacturing locations across India, the UAE, the USA, and Egypt, accumulating a total active base of over 30 million cylinders in service across more than 50 countries.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹346.31 Cr |
| Total income | ₹356.46 Cr |
| Profit before tax | ₹38.54 Cr |
| Profit after tax | ₹30.16 Cr |
| EPS | ₹2.68 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Domestic revenues were supported by healthy underlying demand across CNG and industrial gas applications, although performance faced temporary supply-side and operating constraints during the quarter.
UAE operations registered improving activity and order book growth despite regional logistics challenges, whereas performance in the US subsidiary remained relatively subdued.
Revenues were underpinned by healthy underlying demand across Indian operations, particularly within CNG and industrial gas applications, supported by progressive ramp-up at the Mundra facility.
Consolidated top-line performance of Rs. 346.31 crore was constrained by softer international performance and subdued business activity in the United States, which partially offset improvements in the UAE business.
What drove margins
Cost of goods sold (COGS) stood at Rs. 163 crore, employee benefits expense at Rs. 47 crore, and other expenses at Rs. 89 crore for Q1 FY27.
Consolidated EBITDA margin of 14% and PAT margin of 9% were impacted by weaker profitability within overseas business segments.
Consolidated EBITDA margin contracted to 14 percent in Q1 FY27 from 16 percent in Q1 FY26, pressured by lower profitability in overseas operations.
Cost of materials consumed and changes in inventories of finished goods stood at Rs. 163 crore, decreasing from Rs. 200 crore in the same period last year.
Employee benefit expenses increased to Rs. 47 crore from Rs. 39 crore in Q1 FY26, while other expenses remained steady at Rs. 89 crore compared to Rs. 87 crore previously.
05 · Demand, customers & order book
Where demand is coming from
Management noted that a healthy order book provides medium-term business visibility for the US operations despite current soft patch activity.
EKC serves a diversified base of over 1,000 customers spanning more than 50 countries.
The company experienced growing customer focus and engagement across specialized industrial applications, semiconductors, defence, and clean energy storage solutions.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
EKC continued its strategic focus on expanding presence in higher value-added segments, including semiconductors, defence, hydrogen storage, and specialised industrial applications.
The company targeted emerging clean energy opportunities in compressed biogas (CBG), hydrogen mobility, and gas-based transit applications to broaden its addressable market.
Geography and market mix
EKC showcased its high-pressure cylinder solutions at the EGYPES 2026 conference in Cairo, strengthening customer engagement across Middle East and North Africa (MENA) markets and advancing its new Egyptian manufacturing platform for regional access.
The company completed the divestment of its Hungary operations, sharpening its strategic focus on core markets.
US operations through CP Industries remained relatively subdued during the quarter.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
New manufacturing capacity at the Mundra facility in Gujarat is progressively ramping up to support growing domestic demand.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Completion of the Hungary divestment reflects management's strategy to streamline operations and concentrate resources on core manufacturing geographies.
09 · Reported developments
What changed operationally
Healthy underlying demand in India across CNG and industrial gas applications alongside sequential margin recovery in standalone operations.
Completion of the Hungary divestment and the establishment of a new manufacturing platform in Egypt to strengthen regional market access in MENA.
10 · Pressure points & risks
What is not going smoothly
India operations encountered temporary supply-side and operating constraints during the quarter, while international performance remained subdued, dragging down overall margins.
11 · Beyond the numbers
What changed beyond the numbers
Participation at EGYPES 2026
EKC participated in the EGYPES 2026 exhibition in Cairo, highlighting its high-pressure cylinder solutions for industrial gases, CNG, and clean energy storage to regional stakeholders.
12 · Key Q&A
The quarter, answered directly
What does Everest Kanto Cylinder do?
Everest Kanto Cylinder Limited (EKC) is a clean energy solutions company and a leading global manufacturer of seamless steel gas cylinders, with over 45 years of operational history since its establishment in 1978.
What is the clearest takeaway from Q1 FY27?
The company generated a consolidated profit after tax (PAT) of Rs. 30.16 crore, representing a PAT margin of 9% for the quarter, and diluted earnings per share (EPS) of Rs. 2.68.
What drove revenue or demand?
Domestic revenues were supported by healthy underlying demand across CNG and industrial gas applications, although performance faced temporary supply-side and operating constraints during the quarter.
What mattered most for margins or profitability?
Cost of goods sold (COGS) stood at Rs. 163 crore, employee benefits expense at Rs. 47 crore, and other expenses at Rs. 89 crore for Q1 FY27.
What changed operationally beyond the headline numbers?
New manufacturing capacity at the Mundra facility in Gujarat is progressively ramping up to support growing domestic demand.
What are the main pressure points disclosed for the quarter?
India operations encountered temporary supply-side and operating constraints during the quarter, while international performance remained subdued, dragging down overall margins.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Mundra capacity utilization: Monitor the progress and scaling of manufacturing output at the newly expanded Mundra facility in Gujarat.
- 02
International subsidiary turnaround: Track recovery trajectories in overseas operations, particularly the US business and newly established Egyptian platform.
- 03
International Recovery: Track operational turnaround and order execution progress across US and Middle Eastern subsidiaries.
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