EKC Q3 FY26: PAT Surges 98.9% YoY to ₹35.7 Crore; EBITDA Up 48%
Everest Kanto Cylinder Limited reported a Q3 FY26 PAT of ₹35.7 crore, up 98.9% YoY, with consolidated revenues at ₹365.1 crore. EBITDA grew 48% to ₹59.2 crore. The company approved USD 5.5 million capex for its US subsidiary and commenced operations at its Mundra facility. Egypt facility expected to start by May 2026.
The substantial increase in profitability, coupled with strategic capex for capacity expansion and new facility developments, is expected to have a significant positive impact on the company's future performance and market position.
The company reported significant year-on-year growth in PAT and EBITDA, along with margin expansion. Strategic investments in capacity and new facilities are also underway, indicating positive future prospects.
Everest Kanto Cylinder Limited (EKC) reported a strong Q3 FY26 performance, with consolidated revenues reaching ₹365.1 crore. EBITDA saw a significant year-on-year increase of 48% to ₹59.2 crore, with consolidated margins expanding to 16.2%. Profit Before Tax (PBT) stood at ₹53.6 crore, and Profit After Tax (PAT) for the quarter grew by 98.9% YoY to ₹35.7 crore.
On a standalone basis, revenues were ₹247.0 crore. Standalone EBITDA margins expanded to 23.1% from 14.9% in the same period last year, contributing to a standalone PAT of ₹36.0 crore, a 57.6% YoY growth. The company attributes the margin expansion to improved realisations, a favourable product mix including contributions from higher-end products for the CV, defense, and semiconductor industries, and cost discipline.
EKC has approved a capex of USD 5.5 million for its US subsidiary, CP Industries, to enhance manufacturing capabilities for larger diameter and Type 4 cylinders, aiming to address emerging clean energy and industrial applications. The company has also commenced operations at its greenfield Mundra facility, with one production line operational and additional capex of ₹30 crore approved to strengthen capabilities. The Egypt facility is progressing steadily and is expected to commence operations by May 2026, focusing on domestic and regional market requirements.
The company anticipates sustainable EBITDA margins between 15%-17% going forward. EKC is targeting a 15%-20% growth in FY27, maintaining healthy profitability. The US business is expected to add approximately ₹100 crore to the top line by FY27-FY28 with margins upward of 20%, backed by customer contracts. The UAE business is projected to break even in FY27, with expected profitability in the coming quarters. The Egypt facility is projected to generate ₹50-₹60 crore in revenue in its first year, with margins expected to improve over time.
The company also noted that its Type 3 composite cylinders are finding a foothold in the Indian market, while Type 4 cylinders are being developed in the US. The order book for the US stands at approximately $75 million, with an execution timeline of two years. The company is awaiting an update on the GST case.
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