Everest Kanto Q1 FY27 Results (NSE: EKC)
Signal: Revenue declined
The read
The trajectory is a near-term demand and execution slowdown rather than a clean margin inflection: consolidated revenue fell 10.5% YoY to ₹346.31 Cr and EBITDA fell 14.6% to ₹57.53 Cr, while PAT dropped 41.8% to ₹30.03 Cr largely because Q1FY26 included a ₹12.6 Cr exceptional ERC gain; management nevertheless points to healthy CNG and industrial-gas demand, Mundra ramp-up and medium-term clean-energy opportunities.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹346.31 Cr | -10.5% | -3.3% |
| EBIT | ₹42.56 Cr | -25.0% | |
| Net profit | ₹30.03 Cr | -41.8% | |
| EPS | ₹2.68 | -41.7% | |
| EBIT margin | 16.6% |
P&L walk
Consolidated revenue declined to ₹346.31 Cr (-10.5% YoY) amid temporary supply-side and operating constraints and subdued international performance; EBITDA fell 14.6% to ₹57.53 Cr, EBIT fell 25.0% to ₹42.56 Cr, and PAT fell 41.8% to ₹30.03 Cr, with the comparison also affected by the prior-year ₹12.6 Cr exceptional ERC gain.
Segments
Standalone revenue fell 14.4% YoY to ₹202.74 Cr versus a 10.5% consolidated decline to ₹346.31 Cr, while consolidated PAT fell 41.8% versus standalone PAT down 15.9% because the prior-year consolidated comparison included a ₹12.6 Cr ERC gain at CP Industries.
Key positives
- EBITDA remained ₹57.53 Cr despite revenue declining 10.5% YoY to ₹346.31 Cr, indicating the operating result held up better than the PAT comparison suggests.
- Management reported healthy underlying India demand in CNG and industrial-gas applications and highlighted higher-value opportunities in semiconductors, defence, industrial gases, hydrogen and other clean-energy applications.
- Mundra capacity is progressively ramping up, while the company has ~1.8M cylinders/year of aggregate capacity across 6 facilities.
- US order visibility was described as healthy and UAE activity and order book were improving despite regional logistics challenges.
Key concerns
- Consolidated revenue fell 10.5% YoY to ₹346.31 Cr, with management citing temporary supply-side and operating constraints and subdued international performance.
- EBITDA declined 14.6% YoY to ₹57.53 Cr and EBIT declined 25.0% to ₹42.56 Cr, showing operating pressure below the revenue line.
- Other income of ₹10.15 Cr represented 26.3% of consolidated PBT, so reported earnings remain meaningfully influenced by non-operating income.
- Standalone revenue fell 14.4% YoY to ₹202.74 Cr, worse than the consolidated decline, indicating weakness in the parent operations despite the broader group's international and subsidiary effects.
Earnings quality: includes non-operating other income
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