Everest Kanto Cylinder Limited Q2 FY26 Concall Decoded: ₹360 crore revenue, margins wobble, hydrogen dreams teased, and capex keeps rolling
1. Opening Hook
Just when markets were busy debating EVs killing CNG and hydrogen saving the planet, Everest Kanto Cylinder Limited showed up with a calm Q2 FY26 call saying: “Relax, cylinders still matter.”
Revenue came in steady, margins slipped, GST haunted everyone equally, and hydrogen was confidently placed in the “great but not today” folder. The CNG slowdown? Apparently just a GST hiccup. The US business? Order book fat, dispatches thin. Egypt and Mundra? “Almost there,” which in corporate language means please wait one more quarter.
Management sounded confident, analysts sounded cautious, and investors were left wondering whether this is a consolidation phase or the calm before another growth burst. Stick around—because between hydrogen hype, defence whispers, and a ₹1,000 crore order book, things get more interesting the deeper you go.
2. At a Glance
Revenue ₹360.4 Cr: Not blockbuster, not flop—steady like a long-term SIP.
EBITDA ₹42.9 Cr (11.9%): Respectable, but last quarter’s swagger is missing.
PAT ₹13.7 Cr: Profits survived, barely noticed the drama.
Standalone margin 11.2%: Improvement year-on-year, because small wins matter.
Order Book ~₹1,000 Cr: Management says visibility is “healthy,” investors say “execute first.”
3. Management’s Key Commentary
“In Q2 FY26, we delivered a steady performance.” (Translation: Nothing broke, so please don’t panic 😏)
“CNG volumes were impacted due to GST transition in the automotive industry.” (Blame GST—India Inc’s favourite scapegoat.)
“The softness has normalized, and domestic demand remains supportive.” (Trust us, it’s already better—numbers will follow later.)
“US business is order-driven; dispatches were lower this quarter.” (Orders exist, trucks were just lazy.)
“Margins in the US were affected by higher operating costs.” (Hiring talent is expensive; growth isn’t free.)
“Egypt plant will begin trial production shortly.” (Translation: Machines are warming up, champagne still chilled.)
“Hydrogen is early days, but very positive for us.” (Great story, zero revenue—for now.)
