Everest Kanto Cylinder Limited delivered exceptional financial performance in Q3 FY26, demonstrating significant improvement across key metrics driven by enhanced product mix and operational excellence. The company's earnings conference call held on February 17, 2026, revealed strong momentum in profitability and strategic positioning.

Financial Performance Highlights

The company reported robust consolidated financial results for Q3 FY26, showcasing substantial growth across all major parameters:

On a standalone basis, the company maintained strong performance with revenue of Rs. 247.0 crore. Standalone EBITDA margins expanded significantly to 23.1% compared to 14.9% in the same period last year. Standalone profit after tax stood at Rs. 36.0 crore, registering growth of 57.6% YoY.

Strategic Product Mix Enhancement

The company's margin expansion was primarily driven by focus on higher-end products across diverse segments. Managing Director Puneet Khurana highlighted the strategic shift towards premium offerings in commercial vehicles, defense applications, and semiconductor industry segments. This diversified approach has contributed significantly to improved profitability during the quarter.

For the nine-month period ended FY26, standalone EBITDA margins stood at 17.3%, with management targeting sustainable margins of 15%-17% going forward. The company operates at approximately 75% capacity utilization across its manufacturing facilities.

Expansion and Growth Initiatives

International Operations

The company approved significant capex investments to strengthen its global footprint:

Domestic Capacity Enhancement

The Mundra facility has successfully commenced operations with one production line operational. The remaining two lines are expected to be established in the coming months, adding approximately 15% to overall capacity. The company has approved additional capex of Rs. 30 crore to strengthen capabilities at this facility.

Egypt Operations

The Egypt facility is progressing steadily and is expected to commence operations by May 2026. Management anticipates revenue of Rs. 50-60 crore in the first year, focusing on domestic demand while supporting regional market requirements.

Market Outlook and Performance Drivers

The commercial vehicle CNG segment showed notable recovery after a subdued period of two years. Management expressed optimism about the sustainability of this trend, citing improved CNG infrastructure, increased vehicle model availability from OEMs, and customer acceptance of fuel pricing dynamics.

The company has also entered the semiconductor segment, contributing to the improved margin profile. Type 3 composite cylinders represent a growing market segment, though contribution remains modest in the Indian operations currently.

Regional Performance Analysis

India operations remained the primary contributor to overall performance, supported by steady demand across CNG and industrial applications. The US operations continue to reflect order-driven business dynamics with healthy year-to-date progress. UAE operations remained subdued during the quarter, with management expecting breakeven in FY27 through improved market engagement.

Management targets overall growth of 15%-20% while maintaining current margin levels, supported by new capacity additions, strong order pipeline, and continued operational efficiency focus.

Everest Kanto Cylinder Limited delivered exceptional financial performance for Q3FY26, with the Board of Directors approving quarterly results and strategic capital allocation decisions on February 12, 2026. The company reported significant growth across key financial metrics while advancing its global expansion strategy through substantial capex approvals.

Strong Q3FY26 Financial Performance

The company demonstrated robust operational performance with consolidated revenues of ₹365.1 crore. Profitability metrics showed remarkable improvement year-over-year:

EBITDA margins expanded significantly to 16.2% from 10.9% in Q3FY25, driven by favorable product mix, improved realizations, and continued cost discipline. The standalone business performed even better with EBITDA margins of 23.1% compared to 14.9% in the previous year.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, the company maintained strong momentum with consolidated revenues growing 3.3% to ₹1,112.4 crore. Key performance indicators showed consistent improvement:

Strategic Capital Allocation Decisions

The board approved significant capex investments to strengthen operational capabilities and expand market reach:

The US subsidiary investment focuses on expanding capabilities in larger diameter and Type 4 cylinders to address emerging clean energy and industrial applications across North and South America.

Operational Milestones and Expansion

The company achieved key operational milestones during the quarter, including the successful operationalization of one production line at the Mundra facility. The remaining two production lines are expected to be established in the coming months. Additionally, the Egypt facility is progressing steadily towards commencement of operations, expected by May 2026.

Regulatory Compliance and Transparency

Everest Kanto Cylinder fulfilled its regulatory obligations under Regulation 30 and 33 of the Listing Regulations by submitting unaudited financial results to BSE Limited and National Stock Exchange of India Limited. The results were accompanied by statutory auditors' limited review report from Suresh Surana & Associates LLP, ensuring transparency for stakeholders.