Everest Kanto Cylinder Limited has received a significant GST order from tax authorities regarding input tax credit discrepancies for the financial year 2021-22. The company disclosed this development on December 31, 2025, in compliance with SEBI listing regulations.

GST Order Details

The Deputy Commissioner, Lucknow Sector-22, issued an order under Section 73 of the Goods and Services Tax Act, 2017, addressing input tax credit mismatch issues. The order was dated December 31, 2025, and pertains to the tax period from April 2021 to March 2022.

Nature of Non-Compliance

The GST authorities identified excess input tax credit claimed by the company during FY 2021-22. According to the company's disclosure, the mismatch occurred because the relevant entries are not reflecting on the GST portal due to technical errors in the system.

Payment Timeline and Compliance

The GST order directs Everest Kanto Cylinder to make the payment by March 31, 2026. The authorities have warned that failure to comply within the stipulated timeframe will result in recovery proceedings against the company.

Company's Response and Action Plan

Everest Kanto Cylinder has outlined its strategy to address the GST order. The company stated that it expects no financial implications from this order, indicating confidence in resolving the matter. The company plans to file a rectification application and/or appeal as required within the prescribed timeframe once the Bill of Entry reflects on the GST portal.

The company has made this disclosure available on its website at www.everestkanto.com , ensuring transparency with stakeholders and compliance with regulatory requirements.

Everest Kanto Cylinder Limited (EKC), a leading manufacturer of high-pressure gas cylinders, has reported its financial results for the second quarter of fiscal year 2026, showcasing steady performance amidst market transitions.

Financial Highlights

EKC delivered a consolidated revenue of ₹360.40 crores in Q2FY26, with an EBITDA of ₹42.90 crores, translating to a margin of 11.90%. The company's PAT (Profit After Tax) for the quarter stood at ₹13.70 crores. On a standalone basis, the revenue was ₹232.40 crores, with an improved margin of 11.20% compared to 9.30% in the same period last year.

Segment Performance

The CNG segment in India experienced temporary softness due to GST transition impacts in the end-user automotive industry. However, the company reports that this has since normalized, and the underlying domestic demand environment remains supportive. The Industrial segment continues to perform in line with expectations.

International Operations

EKC's US business reflected the order-driven nature of the market, with lower dispatches during the quarter. However, the performance for the first half of the fiscal year remains healthy. The US operations faced higher operating costs, impacting margins, as the company invested in strengthening teams and capabilities to support business scale-up. The outlook for the US market remains strong, with a healthy order book providing visibility for the second half of FY26.

Operations in the Middle East have shown early signs of improvement during the quarter.

Expansion Plans

EKC is making steady progress on its new facilities:

1. Egypt Plant: Preparing to begin trial production by January 2026.
2. Mundra Facility: Work continues as planned, expected to be operational by March 2026.

Both facilities are on schedule and will significantly enhance EKC's manufacturing capabilities in the coming year, enabling the company to serve a wider range of domestic and international opportunities.

Management Commentary

Puneet Khurana, Managing Director of EKC, commented on the results: "With growing opportunities across clean energy and industrial applications, coupled with great visibility in our order pipeline, we remain confident about our future growth perspectives. Our focus remains on operational excellence, capability development, and supporting customers across geographies, as we build for the next phase of growth for EKC."

Future Outlook

The management has provided revenue guidance of ₹900-1,000 crores for the standalone business for FY26, with an expected EBITDA margin of 12-14%. The company's order book stands at approximately ₹1,000 crores, executable over the next year, indicating strong growth potential.

EKC continues to explore opportunities in emerging sectors such as hydrogen storage, semiconductors, and solar energy, while maintaining its strong position in the CNG and industrial gas segments. The company is also catering to the defense sector, though specific details remain confidential due to the nature of the projects.

As Everest Kanto Cylinder Limited navigates through market transitions and expands its manufacturing footprint, the company appears well-positioned to capitalize on the growing demand for high-pressure gas cylinders across various industries.