Everest Kanto Q4 FY26 Earnings Call — Analysis (NSE: EKC)
Everest Kanto reports FY26 PAT ₹146.7 Cr (+50.1% YoY) with EBITDA margin expansion to 13.8%; greenfield Mundra commenced production, Egypt facility to be operational by June-end.
The take
Consolidated Profit Before Tax (FY26) ₹159.9 Cr ( +22.6% YoY ) . New guidance — Q1FY27 egypt facility by the end of this month . New story: Capacity expansion (Mundra & Egypt) .
Results
Revenue ₹358.2 Cr; EBITDA ₹39.6 Cr (margin 11.1% vs 9.0% YoY); PAT ₹45.7 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue (FY26) | ₹1,470.6 Cr | none · FY26 · FY26 | |
| Consolidated EBITDA (FY26) | ₹203 Cr | +15.7% | yoy · FY26 · FY26 |
| Consolidated EBITDA Margin (FY26) | 13.8% | +210 bps | yoy · FY26 · FY26 |
| Consolidated Profit Before Tax (FY26) | ₹159.9 Cr | +22.6% | yoy · FY26 · FY26 |
| Consolidated Profit After Tax (FY26) | ₹146.7 Cr | +50.1% | yoy · FY26 · FY26 |
| Consolidated Revenue (Q4FY26) | ₹358.2 Cr | none · Q4FY26 · Q4FY26 | |
| Consolidated EBITDA (Q4FY26) | ₹39.6 Cr | none · Q4FY26 · Q4FY26 | |
| Consolidated EBITDA Margin (Q4FY26) | 11.1% | +210 bps | yoy · Q4FY26 · Q4FY25 |
| Consolidated Profit After Tax (Q4FY26) | ₹45.7 Cr | none · Q4FY26 · Q4FY26 | |
| Standalone Revenue (FY26) | ₹966.7 Cr | none · FY26 · FY26 | |
| Standalone EBITDA (FY26) | ₹154.4 Cr | +53.4% | yoy · FY26 · FY26 |
| Standalone EBITDA Margin (FY26) | 16.0% | +540 bps | yoy · FY26 · FY26 |
| Standalone Profit After Tax (FY26) | ₹81.2 Cr | +52.3% | yoy · FY26 · FY26 |
Guidance
Egypt facility to commence operations by end-June 2026, ramp-up to 40% utilisation initially, then ~80% of targets; Mundra ramp-up in 6 months.
What management committed to
- Egypt facility to commence operations by end of June 2026. — by the end of this month, Q1FY27
- Mundra facility ramp-up to full production within 6 months from June 2026. — 6 months, Q3FY27
- Egypt facility to achieve initial utilisation of ~40% of its capacity targets. — 40% of our targets
- Egypt facility may achieve around 80% of its capacity targets as it goes ahead. — 80% of the targets
- US order book of $75 million to be executed over 18-24 months. — $75 million, FY27-FY28
- Dubai business performance to improve in FY27 compared to FY26. — better, FY27
- GST case clarification expected within 6-12 months from June 2026. — 6 months to a year, FY27
Key themes
Margin expansion and capacity ramp-up
How the narrative shifted
- Capacity expansion (Mundra & Egypt): Expanding global manufacturing footprint to serve regional markets efficiently and capture growing demand.
- Margin expansion through product mix: Higher value-added segments (semiconductors, defence) boosting product mix and supporting overall margin expansion.
- CNG demand sustainability: CNG adoption remains strong despite near-term fuel price volatility; India's multi-fuel economy provides long-term tailwind.
- Dubai/Middle East geopolitical headwind: Geopolitical situation in the Middle East constraining shipments, but order book improving, and management expects improvement.
- US order book strength: Healthy order pipeline of $75 million with 18-24 months execution visibility supporting steady US momentum.
- GST case resolution: Confident of favourable resolution after industry representation; timeline of 6-12 months.
- CEO succession: New CEO proposed, details withheld until joining.
Operational commentary
- Mundra greenfield facility commenced production; ramp-up expected in 6 months.
- Egypt facility on track to commence operations by end-June 2026, targeting initial 40% utilization, then ~80% of targets.
- US order book at $75 million, executable over 18-24 months, supporting steady momentum.
- Higher value-added segments (semiconductors, defence) gained traction, aiding product mix and margin expansion.
- Dubai business under pressure from geopolitical situation, operating at ~50% utilization; order book improving, management expects better year.
- New CEO proposed, background details to be shared post-joining.
- GST case: positive outlook after industry representation; timeline 6-12 months for clarification.
Analyst Q&A
Q. Should we expect improvement in Dubai business given the geopolitical situation?
Definitely there will be improvement. Even in this difficult situation, we are working at around 50% and the order book is improving. Hopefully, this year should be a better year.
Q. What is the order book for the U.S.A. subsidiary and its executable time period?
The order book in U.S.A. is around US$75 million and it is for the period between 18 months to 24 months to be executed.
Q. Can you share the background of the proposed new CEO, Mr. Gupta?
We are awaiting his joining. Once he joins in, we will be sharing all the details. So, you may wait a little more.
Q. What is the ramp-up guidance for Mundra and Egypt?
On Mundra, ramp-up will happen maybe 6 months down the line. On Egypt, we may be operational by the end of this month and the ramp-up will start happening again after 6 months. Immediate targets would be around 40% of our targets, and maybe as we go ahead, we may achieve around 80% of the targets.
Q. What is the update on the GST case?
Our cases, we have made a representation to the government seeking a clarification on the HSN. We are very positive. Timeline can be between 6 months to a year.
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