Will Everest Kanto Cylinder Stabilise After Its Weak Q2 Performance?
About Everest Kanto Cylinder
Everest Kanto Cylinder (EKC) is a leading global manufacturer of CNG and industrial cylinders, supplying to automotive OEMs, gas distribution companies and industrial clients across India and overseas. Q2 numbers reveal the impact of slower automotive demand, soft order inflows and margin compression due to cost pressures.
Everest Kanto’s Q2 FY26 results reflect a meaningful drop across revenue, EBITDA and profitability, signalling a challenging operating environment.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Net Profit | ₹13.67 Cr | -64% | -74% |
| Revenue | ₹360.3 Cr | -2% | -7% |
| EBITDA | ₹42.85 Cr | -19% | -30% |
| EBITDA Margin | 11.89% | vs 14.47% | vs 15.85% |
Net Profit ₹13.67 Cr — a sharp decline due to narrowing spreads, lower export contribution and weak mix realisation.
Revenue ₹360.3 Cr — stable YoY but slipping sequentially as CNG demand normalisation continues.
EBITDA ₹42.85 Cr — margin compression highlights higher raw material costs and lower operating leverage.
For deeper market setups & trend analysis, review our updated trading outlook via Nifty Tip.
Peer Comparison
| Company | Segment | EBITDA Margin |
|---|---|---|
| Everest Kanto Cylinder | CNG & Industrial Cylinders | 11.89% |
| Alice Blue Cylinders | Industrial Gas Cylinders | 13–15% |
| Time Technoplast | Composite Cylinders | 12–14% |
Strengths & Weaknesses
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Valuation & Investment View
Everest Kanto is in a corrective phase with weakening profitability and slowing revenue momentum. The structural CNG theme remains intact, but near-term valuations demand caution until margin normalisation becomes visible.
For trend-based setups on cylinders and related themes, explore our BankNifty Tip.
Investor Takeaway
Market Strategist Gulshan Khera notes that EKC’s long-term outlook is linked to CNG penetration and export growth, but short-term numbers suggest muted performance. Investors should evaluate risk-reward carefully. More updates are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
