Everest Kanto Cylinder Ltd Q2 FY26 – From CNG Dreams to Gas-Sweating Realities (Revenue ₹360 Cr, PAT ₹13.7 Cr, ROE 8.9%)

1. At a Glance

Everest Kanto Cylinder Ltd (EKC) — the name itself sounds like a hill you must climb with a gas cylinder on your back. The company, once the golden boy of India’s CNG revolution, now looks more like that uncle who peaked in 2012 and is still telling everyone he “almost” invested in Tesla. With a market cap of ₹1,390 crore, stock price of ₹124, and P/E of 14.2, EKC’s latest Q2 FY26 results show a revenue of ₹360 crore and PAT of ₹13.7 crore — a 46% YoY drop that hits harder than a gas cylinder falling on your toe.

Return on capital employed? 11.8%. Return on equity? 8.9%. Return on investor patience? Let’s just say not measurable. Despite its presence in 25+ countries, the company’s stock is down 40.5% in one year. Yes, you read that right — the same firm supplying cylinders to Reliance and Tata Motors somehow managed to leak shareholder value faster than a faulty valve.

But wait — there’s expansion in Egypt, a big Mundra project, and talk of hydrogen and biogas opportunities. So is EKC the sleeping gas giant of India or just another fume in the CNG story? Buckle up; this one’s going to be explosive.

2. Introduction

Once upon a time, before electric cars became the cool kid, Everest Kanto Cylinder was the oxygen tank of India’s CNG story. If you ever sat in an old CNG auto that sounded like it was crying for help, chances are, the cylinder behind your seat was made by EKC.

Established in 1978 and still holding strong, EKC is the OG of high-pressure seamless gas cylinders. It has 20 million+ cylinders in service, supplying to every possible segment — from autos to industries to hospitals to, well, your neighborhood fire extinguisher. It’s Asia’s largest manufacturer of these steel beasts.

Yet, behind the metal is a story of pressure — both literally and financially. Once flying high with booming CNG adoption and city gas expansions, EKC today finds itself juggling between slow domestic demand and expansion dreams abroad. The Egypt facility is nearing completion, Mundra expansion is on, and management keeps promising a ₹300 crore revenue boost.

But here’s the fun part — their Q2 FY26 numbers look like the company took a nap right when the EV boys started their engines. Revenue fell slightly QoQ and profits nosedived. The only thing that inflated more than their cylinders? The competition in clean energy.

So, what’s really happening under EKC’s heavy metal hood? Let’s roll up our sleeves and find out.

3. Business Model – WTF Do They Even Do?

Think of EKC as the guy who sells the bottles that hold everyone else’s energy. It doesn’t produce gas; it produces the containers that keep the gas from blowing up your factory.

Core Business:

• CNG Steel Cylinders: For autos, buses, and city gas distribution.
• Industrial Gas Cylinders: For factories that smell like burnt oil and ambition.
• Medical Cylinders: The pandemic hero