Everest Kanto Q2 Profit Up 46% as Half-Year Profit Falls 23%

Everest Kanto Cylinder Limited reported consolidated profit after tax of Rs 19.96 crore for the quarter ended 30 September 2026, up 46% year on year, while first-half profit fell 23% to Rs 50.12 crore. Quarterly revenue rose 11% to Rs 398.83 crore, but six-month revenue was broadly unchanged at Rs 745.14 crore.

How did Everest Kanto perform in Q2?

Everest Kanto’s consolidated profit after tax rose to Rs 19.96 crore for the quarter ended 30 September 2026 from Rs 13.66 crore a year earlier, while revenue from operations increased 11% to Rs 398.83 crore from Rs 360.38 crore. Profit before tax increased to Rs 34.12 crore from Rs 20.92 crore, and basic and diluted earnings per share rose to Rs 1.80 from Rs 1.22.

The year-on-year comparison was affected by an exceptional loss of Rs 11.29 crore in the quarter ended 30 September 2025, while no exceptional item was reported in the latest quarter. Profit before exceptional items and tax increased 6% to Rs 34.12 crore from Rs 32.21 crore. The reported profit increase was therefore larger than the increase before exceptional items.

Revenue also rose from Rs 346.31 crore in the preceding quarter ended 30 June 2026, but profit after tax declined from Rs 30.16 crore. Total income increased to Rs 399.18 crore from Rs 356.46 crore sequentially, although other income fell to Rs 0.35 crore from Rs 10.15 crore and profit before tax decreased from Rs 38.54 crore.

Why did Everest Kanto’s first-half profit decline?

Everest Kanto’s profit after tax for the half year ended 30 September 2026 declined to Rs 50.12 crore from Rs 65.24 crore in the corresponding prior-year period despite the September-quarter improvement. Revenue from operations was nearly unchanged at Rs 745.14 crore compared with Rs 747.26 crore, while profit before tax declined 16% to Rs 72.66 crore from Rs 86.35 crore.

The prior-year half year included an exceptional gain of Rs 1.34 crore, whereas Everest Kanto reported no exceptional item in the latest six-month period. However, profit before exceptional items and tax also fell to Rs 72.66 crore from Rs 85.01 crore. The movement was therefore not limited to the absence of the prior-year exceptional gain.

Total expenses increased to Rs 682.98 crore from Rs 673.01 crore over the six months. Finance costs rose to Rs 10.71 crore from Rs 7.91 crore, while depreciation, amortisation and impairment expense increased to Rs 32.61 crore from Rs 22.04 crore. Employee benefits expense rose to Rs 93.38 crore from Rs 81.52 crore, although materials-consumption cost declined to Rs 345.42 crore from Rs 370.34 crore.

Which Everest Kanto segments drove the quarterly result?

Everest Kanto’s India and USA and Hungary segments recorded higher Q2 revenue and segment results, while the UAE (Dubai) segment moved into a loss. India revenue increased to Rs 254.98 crore from Rs 232.35 crore and its segment result rose to Rs 27.67 crore from Rs 11.29 crore. USA and Hungary revenue increased to Rs 111.81 crore from Rs 86.75 crore, with segment result rising to Rs 20.78 crore from Rs 11.82 crore.

The UAE (Dubai) segment reported Q2 revenue of Rs 29.06 crore, down from Rs 40.69 crore, and a segment loss of Rs 5.80 crore against a Rs 4.50 crore profit a year earlier. The Others segment reported a loss of Rs 2.73 crore compared with a loss of Rs 0.77 crore. Combined segment revenue before inter-segment eliminations was Rs 402.74 crore, while eliminations were Rs 3.91 crore.

For the half year ended 30 September 2026, India segment result improved to Rs 56.38 crore from Rs 45.34 crore. This did not offset the decline in the USA and Hungary segment result to Rs 25.62 crore from Rs 38.67 crore, or the UAE (Dubai) shift to a Rs 5.07 crore loss from a Rs 6.71 crore profit. Total segment result fell to Rs 73.00 crore from Rs 89.59 crore.

What changed in Everest Kanto’s balance sheet and cash flow?

Everest Kanto’s total assets increased to Rs 2,037.16 crore at 30 September 2026 from Rs 1,893.93 crore at 31 March 2026. Trade receivables rose to Rs 317.50 crore from Rs 223.53 crore, while property, plant and equipment increased to Rs 609.29 crore from Rs 559.62 crore. Capital work-in-progress rose to Rs 172.30 crore from Rs 162.28 crore.

Inventories declined to Rs 514.01 crore from Rs 526.46 crore, while cash and cash equivalents increased to Rs 58.75 crore from Rs 35.57 crore. Total equity rose to Rs 1,451.70 crore from Rs 1,399.78 crore. Current borrowings increased to Rs 139.56 crore from Rs 110.43 crore and non-current borrowings rose to Rs 101.87 crore from Rs 88.54 crore.

Net cash generated from operating activities was unchanged year on year at Rs 52.33 crore for the six months ended 30 September 2026. Everest Kanto spent Rs 91.83 crore on property, plant, equipment and intangible assets, including capital work-in-progress, compared with Rs 77.11 crore in the prior-year period. Cash and cash equivalents at the half-year end were Rs 58.75 crore, against Rs 10.90 crore at 30 September 2025.

What did the review report say about Everest Kanto’s subsidiaries?

Everest Kanto’s statutory auditor issued an unmodified review conclusion on the unaudited consolidated results for the quarter and half year ended 30 September 2026. In its report dated 13 November 2026, the auditor said nothing had come to its attention to indicate that the statements did not disclose required information or contained a material misstatement under the listing regulations.

Five subsidiaries reviewed by other auditors had total assets of Rs 1,497.74 crore and Q2 revenue of Rs 139.64 crore before intra-group eliminations. These subsidiaries reported a Q2 net loss after tax of Rs 0.32 crore and total comprehensive income of Rs 11.15 crore. The review conclusion relied on reports issued by the other auditors for those entities.

Three subsidiaries with unreviewed interim results had assets of Rs 92.63 crore, Q2 revenue of Rs 10.60 crore and profit after tax of Rs 2.31 crore. For the six months ended 30 September 2026, these entities reported revenue of Rs 14.62 crore and profit after tax of Rs 3.48 crore. The auditor said management considered these unreviewed subsidiaries not material to the group.

Conclusion

Everest Kanto’s September-quarter result showed a reported profit recovery, with profit after tax reaching Rs 19.96 crore as revenue rose to Rs 398.83 crore and the India and USA and Hungary segments improved their quarterly results. The six-month result was less favourable: revenue remained close to the prior-year level at Rs 745.14 crore, while profit after tax declined to Rs 50.12 crore.

The next result will indicate whether India’s Rs 27.67 crore Q2 segment result and USA and Hungary’s Rs 20.78 crore result can be sustained. The disclosed unresolved pressures include the UAE (Dubai) segment’s Rs 5.80 crore Q2 loss, trade receivables of Rs 317.50 crore and higher borrowings at 30 September 2026.