Everest Kanto Cylinder Ltd – Company Fundamental Analysis

Everest Kanto Cylinder (EKC) is a specialised manufacturer of high-pressure gas cylinders and storage solutions, with applications across CNG, hydrogen, industrial gases and other compressed gases. The company has manufacturing operations in India, the UAE and the US, giving it an international revenue base. Its exposure to CNG infrastructure and the emerging hydrogen economy provides structural growth opportunities, while its specialised manufacturing capabilities create entry barriers. EKC also completed the sale of its 80% stake in EKC Europe Zrt., Hungary, in April 2026, simplifying its overseas structure. FY26 remained reasonably strong operationally, with India revenue at about ₹967 crore, UAE revenue at ₹152 crore and the US/Hungary segment at ₹356 crore. However, consolidated profitability was affected by exceptional items, including a ₹11.3 crore Kandla SEZ penalty and ₹12.6 crore gain from an employee-retention-credit refund in the US subsidiary. Q1 FY27 was weaker: consolidated revenue from operations declined 10.5% YoY to ₹346.3 crore, while PAT fell 41.5% to ₹30.2 crore. India revenue declined 14.5%, whereas UAE revenue increased to ₹52 crore; the US and Hungary operations contributed ₹92.2 crore. The long-term opportunity comes from growth in CNG adoption, industrial-gas storage, hydrogen infrastructure and potentially higher-value composite-cylinder applications. The company’s international manufacturing footprint provides diversification, while disposal of the Hungary subsidiary should allow greater focus on core operations. Currency movements, steel/input costs, CNG-policy changes, project timing and overseas execution are additional risks. Overall, EKC has a specialised industrial niche with meaningful exposure to the energy-transition theme, but the investment case currently depends on a recovery in revenue growth and profitability rather than simply the long-term hydrogen opportunity.