Everest Industries Ltd Q2FY26: The Asbestos King’s Comeback Tour (Minus the Profits, Plus the Drama)
1. At a Glance
Everest Industries Ltd – a name that sounds like it should be conquering peaks, but right now it’s mostly trying to climb out of the red. The Q2FY26 results dropped harder than asbestos dust in a closed warehouse: revenue crashed 18.8% QoQ to ₹306 crore, and the company reported a net loss of ₹18.2 crore, a painful 55.7% deeper dive from the previous quarter. The stock’s current market price (₹612) still clings to relevance like a corrugated sheet in a storm, with a market cap of ₹971 crore.
Book value stands at ₹364, so you’re paying around 1.68x book for a business that’s bleeding faster than a cement mixer without a lid. ROE? -1.1%. ROCE? A majestic 0.75%. Debt-to-equity ratio of 0.54 ensures they aren’t drowning yet, but the life jacket’s getting wet.
And let’s not forget the asbestos elephant in the room—literally half of Everest’s revenue depends on a product banned in over 50 countries. But India, as usual, continues to inhale innovation… and asbestos.
So, dear reader, the question isn’t “Is Everest climbing?” It’s “Can you climb while coughing?”
2. Introduction – The Legacy of Roofs and Losses
If corporate India had a hall of fame for contradictions, Everest Industries would have its own wing. Founded in 1934, the company has lived through wars, recessions, pandemics, and SEBI circulars. Yet somehow, it still makes roofing sheets that could give you lung disease.
In the age of smart homes and sustainable architecture, Everest continues to sell asbestos cement sheets with the same confidence with which your grandparents sold land in 1990. It’s like watching a classic Bollywood hero refusing to retire—except instead of Dharmendra, we have cement boards and steel buildings trying to stay relevant.
The company operates in two main segments: Building Products (69% of revenue) and Steel Buildings (31%). One deals with roofs that could kill you, and the other builds warehouses for clients like L&T, Godrej, and Reliance—companies that probably ensure no asbestos gets within 10 km of their premises.
Recent quarters have been rough. Sales have fallen, margins have evaporated faster than water on a hot cement slab, and profit has gone from mildly positive to aggressively negative. Yet, the management has kept busy—setting up a new fibre cement boards plant for ₹138 crore, getting multiple GST show-cause notices (because why not?), and trying to sell land worth ₹133.86 crore to fund its ambitions.
Will Everest Industries manage to rebuild its profitability story, or will it remain an asbestos-coated relic of a bygone industrial era?
3. Business Model – WTF Do They Even Do?
Let’s break it down.
Segment 1: Building Products (69% of FY23 revenue) This is the heart of Everest—roofing sheets, fibre cement boards, designer ceilings, and Artewood planks that claim to look like teakwood but probably feel like regret. AC (Asbestos Cement) roofing remains their bread and butter (and sometimes the cause of cough and sputter).
Products include:
Everest Fibre Cement Roofs: “Fiber orientation process” – fancy way of saying “we put asbestos in it efficiently.”
Everest Supercolor: Colored fibre cement sheets – because if you’re going to inhale asbestos, at least do it stylishly.
Hi-Tech Sheets & Rooflight Polycarbonates: The higher-margin variants meant for the “premium” rural and industrial buyers.
Segment 2: Steel Buildings (31% of FY23 revenue) This is where Everest tries to act modern. It designs and fabricates pre-engineered steel buildings (PEBs) for industrial, commercial, and warehousing clients. They’ve completed 3,000+ projects, which sounds impressive until you realize most were built before “EV” meant electric vehicle and not “Everest’s Value erosion.”
Manufacturing Footprint: Six building product plants and two steel plants spread across India with total capacities of 9,85,000 MTPA (building products) and 72,000 MTPA (steel buildings). There’s also a new steel building facility under construction in Mysore via a subsidiary.
But here’s the problem: 97.3% of Everest’s revenue is domestic. When India sneezes, Everest catches pneumonia (pun intended).
And yes, despite calling itself a “complete building solutions provider,” Everest doesn’t make cement, paint, tiles, or profits.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
306
377
501
-18.8%
-38.9%
EBITDA
-9
-2
16
-350%
-156%
PAT
-18.2
-12
2
-51.7%
-1,010%
EPS (₹)
-11.46
-7.38
1.03
-55.3%
-1,212%
EBITDA margin dropped from 3% to -3%. That’s not a decline—it’s a vanishing act.
When your operating profit goes negative despite selling roofs in monsoon season, you know there’s more leakage than the company admits.
5. Valuation Discussion – Fair Value Range Only
Let’s bring some order to the chaos.
Current Market Cap: ₹971 crore Enterprise Value (EV): ₹1,272 crore EBITDA (TTM): ₹24.8 crore (approx, annualized from recent quarters) PAT (TTM): -₹24 crore EPS (TTM): -₹15.4
Method 1: EV/EBITDA
Even for smallcap building material players, normal EV/EBITDA ranges from 10x–14x. Everest’s current is 51.2x, which screams “bro, chill.” If we assume normalized EBITDA of ₹80–100 crore (a generous recovery case), fair EV range = ₹800–1,400 crore → Equity value = ₹500–1,100 crore → Price range ₹315–695/share.
Method 2: P/E
Meaningless right now (negative EPS). But if normalized EPS = ₹10–₹20 (assuming recovery to FY22 levels), and sector P/E ~15–20x, then fair price range = ₹150–400.
Method 3: DCF (back-of-envelope)
Assume FCF ₹50 crore growing 5% for 10 years, 12% discount rate → Fair value ≈ ₹750 crore equity → ₹470/share.
✅ Fair Value Range (Educational Purpose Only): ₹315 – ₹695/share (Not investment advice. Just mathematics wearing a hard hat.)
6. What’s Cooking – News, Triggers, Drama
Oh, where do we begin? This quarter Everest Industries gave us more drama than a daily soap on Colors TV.
Land Sale Bonanza: The company approved the sale of 23.32 acres at Podanur to G Square Realtors for ₹133.86 crore. The first tranche is done; the second is pending. The sale deed should bring some much-needed oxygen (and liquidity).
New MD & CEO: Rajesh Joshi resigned (probably tired of asbestos jokes), replaced by Hemant Khurana, appointed for a 3-year term from September 2025. Hopefully, he’s bringing an inhaler and a turnaround plan.
Show-Cause Symphony: GST Department dropped three separate show-cause notices totalling more than ₹60 crore of tax demands. Add an EPFO demand of ₹5.17 crore. So yes, the company’s inbox is more packed than its order book.
Credit Rating Downgrades: Both Crisil and ICRA have downgraded ratings multiple times this year due to “margin pressure and higher debt.” Translation: “Bro, profits kahan gaye?”
Capex Splash: Everest Buildpro Pvt Ltd is setting up a ₹138 crore Fibre Cement Board plant, even as the parent company reports losses. Nothing says “optimism” like building another factory while the old ones are underutilized.
So, what’s next? Maybe an asbestos-free future. Or a Netflix documentary titled “Roofs of Glory: The Asbestos Empire.”
7. Balance Sheet – The Cemented Truth
Particulars
Mar’24
Mar’25
Sep’25
Total Assets
1,199
1,311
1,303
Net Worth
598
597
577
Borrowings
96
265
309
Other Liabilities
506
449
417
Total Liabilities
1,199
1,311
1,303
Borrowings have tripled in 18 months. Someone’s clearly shopping on credit.
