Everest Kanto Cylinder Ltd
NSE:EKC
Everest Kanto Cylinder Ltd
Everest Kanto Cylinder Ltd. engages in the manufacture of fabricated metal products. The company is headquartered in Mumbai, Maharashtra. The company went IPO on 2005-12-09. The firm manufactures high-pressure seamless gas cylinders and other cylinders, equipment, appliances, and tanks with their parts and accessories, used for containing and storage of natural gas and other gases, liquids, and air. Its geographical segments include India, United Arab Emirates (UAE), China, the United States of America and Hungary, and Others. The firm is also engaged in the trading of fire extinguishment and related equipment and castor oil. Its products include Industrial Cylinders, Billet Cylinder, Plate Cylinder, compressed natural gas (CNG) Cylinders, Breathing Air cylinders, Jumbo Cylinders, Medical Cylinders, Beverage Cylinders, and Accumulators. The firm also offers a range of allied products, such as Cylinder Valves, Valve Protection Guards, Valve Protection Caps, Trolleys, Medical Equipment, Industrial Equipment, and Purge Bottles/Double Necked Cylinders.
Everest Kanto Cylinder Ltd. engages in the manufacture of fabricated metal products. The company is headquartered in Mumbai, Maharashtra. The company went IPO on 2005-12-09. The firm manufactures high-pressure seamless gas cylinders and other cylinders, equipment, appliances, and tanks with their parts and accessories, used for containing and storage of natural gas and other gases, liquids, and air. Its geographical segments include India, United Arab Emirates (UAE), China, the United States of America and Hungary, and Others. The firm is also engaged in the trading of fire extinguishment and related equipment and castor oil. Its products include Industrial Cylinders, Billet Cylinder, Plate Cylinder, compressed natural gas (CNG) Cylinders, Breathing Air cylinders, Jumbo Cylinders, Medical Cylinders, Beverage Cylinders, and Accumulators. The firm also offers a range of allied products, such as Cylinder Valves, Valve Protection Guards, Valve Protection Caps, Trolleys, Medical Equipment, Industrial Equipment, and Purge Bottles/Double Necked Cylinders.
Profitability Surge: Everest Kanto Cylinder delivered strong Q3 results, with consolidated EBITDA up 48% year-on-year and margins expanding significantly, driven by improved realizations and a favorable product mix.
Margin Expansion: Q3 consolidated EBITDA margin reached 16.2%, up 534 basis points, and management indicated that 15–17% margins are sustainable going forward.
Growth Drivers: Higher-end products for commercial vehicles, defense, and semiconductor industries contributed to margin gains, with rising CNG infrastructure supporting commercial vehicle cylinder demand.
CapEx & Expansion: The company is investing $5.5 million in its US subsidiary to boost capacity, with expansion backed by customer contracts and expected to add INR 100 crores top line by FY '28.
New Facilities: Mundra greenfield plant started its first production line, with two more lines to come, increasing capacity by 15%; the Egypt facility is on track to start operations by May '26.
UAE & Regional Outlook: UAE operations remained subdued but are expected to break even in FY '27 with modest revenue growth; Egypt expected to generate INR 50–60 crores in its first year.
Order Book: US order book stands at $75 million, to be executed over 2 years, supporting a more consistent revenue model.
Guidance: Management targets 15–20% annual growth with sustained margins and sees current industry trends as supportive of continued performance.
