How Strong Are Everest Kanto Cylinder Q3 FY26 Results With Nearly 99% PAT Growth?
About the Company
Everest Kanto Cylinder Limited operates in the high-pressure gas cylinder segment, catering to industrial gases, CNG, hydrogen, and specialized applications across domestic and international markets.
The company continues to benefit from rising clean energy adoption and demand for advanced cylinder solutions globally.
Consolidated Q3 FY26 Performance
| Metric | Q3 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹365.1 crore | — |
| EBITDA | ₹59.2 crore | ↑ 48% |
| EBITDA Margin | 16.2% | Improved |
| PAT | ₹35.7 crore | ↑ 98.9% |
EBITDA growth of 48% combined with nearly 99% growth in PAT indicates strong operating leverage and improved cost efficiency. Margin expansion to 16.2% suggests better product mix and improved realization.
Standalone Performance
| Metric | Q3 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹247.0 crore | — |
| PAT | ₹36.0 crore | ↑ 57.6% |
Strong standalone PAT growth further reinforces earnings momentum and domestic operational strength.
Capex and Expansion Strategy
- ₹30 crore capex approved for Mundra facility expansion
- USD 5.5 million investment in CP Industries (US) to enhance larger and Type 4 cylinder production
- Egypt facility expected to commence operations by May 2026
The investment in CP Industries strengthens exposure to advanced composite cylinders, including Type 4 cylinders, which are increasingly relevant for hydrogen mobility and clean energy ecosystems.
The upcoming Egypt facility enhances global footprint and positions the company closer to export markets, improving logistics efficiency and diversification.
Management Outlook
Management has guided for 15% to 20% YoY growth with sustained margins.
If margin stability is maintained alongside double-digit revenue growth, operating leverage could continue supporting earnings expansion.
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Investor Takeaway
Everest Kanto Cylinder delivered strong Q3 FY26 earnings with sharp PAT growth and margin expansion. Ongoing capacity additions and global diversification strengthen medium-term revenue visibility. Sustained execution of capex plans and margin discipline remain key monitorables.
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