Everest Kanto UAE segment swings to Rs 5.80 crore loss

Everest Kanto Cylinder Limited reported a Rs 5.80 crore UAE segment loss for the quarter ended 30 September 2026, reversing profits of Rs 73 lakh in the previous quarter and Rs 4.50 crore a year earlier, while the U.S.A. and Hungary line posted a Rs 20.78 crore segment result.

Why did Everest Kanto's UAE segment turn loss-making?

Everest Kanto's UAE segment recorded a loss of Rs 5.80 crore before foreign-exchange variation, finance costs and tax in the quarter ended 30 September 2026. This compared with a profit of Rs 73 lakh in the preceding quarter ended 30 June 2026 and Rs 4.50 crore in the quarter ended 30 September 2025. The filing does not specify the operating cause of the quarterly reversal.

UAE revenue was Rs 29.06 crore in the September 2026 quarter, down from Rs 52.04 crore in June 2026 and Rs 40.69 crore a year earlier. For the half year ended 30 September 2026, UAE revenue declined to Rs 81.10 crore from Rs 87.22 crore in the comparable 2025 half year, and its segment result became a Rs 5.07 crore loss from a Rs 6.71 crore profit.

Which regions generated Everest Kanto's segment earnings in September 2026?

Everest Kanto's India operation remained the largest reported contributor to segment result at Rs 27.67 crore, while the U.S.A. and Hungary operation supplied the largest sequential increase at Rs 15.94 crore. India's result was Rs 28.71 crore in the June 2026 quarter, so its Rs 1.04 crore decline was offset by the rise in the U.S.A. and Hungary result from Rs 4.84 crore to Rs 20.78 crore.

The total segment result increased by Rs 6.84 crore from June 2026 and by Rs 13.08 crore from September 2025 to Rs 39.92 crore. The U.S.A. and Hungary increase of Rs 15.94 crore from the prior quarter was greater than the total increase because UAE worsened by Rs 6.53 crore, India decreased by Rs 1.04 crore, and the loss in Others widened by Rs 1.53 crore.

How did Everest Kanto's regional revenue mix change?

Everest Kanto's India revenue rose to Rs 254.98 crore in the September 2026 quarter from Rs 202.74 crore in June 2026 and Rs 232.35 crore a year earlier. The U.S.A. and Hungary revenue line increased to Rs 111.81 crore from Rs 92.20 crore sequentially and Rs 86.75 crore year on year, whereas UAE revenue fell to Rs 29.06 crore.

Combined segment revenue was Rs 402.74 crore in the September 2026 quarter, compared with Rs 348.69 crore in June 2026 and Rs 369.07 crore in September 2025. Inter-segment revenue was Rs 3.91 crore, leaving reported revenue from operations of Rs 398.83 crore; that was above Rs 346.31 crore in June 2026 and Rs 360.38 crore a year earlier.

For the half year ended 30 September 2026, India revenue was Rs 457.72 crore against Rs 469.33 crore in the prior-year half, while U.S.A. and Hungary reached Rs 204.01 crore from Rs 195.30 crore. UAE generated Rs 81.10 crore versus Rs 87.22 crore, meaning the disclosed half-year changes differed across the three geographical lines even as total reported revenue from operations was broadly stable at Rs 745.14 crore against Rs 747.26 crore.

What do Everest Kanto's regional assets and liabilities show?

Everest Kanto reported Rs 301.56 crore of UAE segment assets at 30 September 2026, compared with Rs 307.14 crore at 30 June 2026 and Rs 209.78 crore a year earlier. UAE segment liabilities were Rs 67.08 crore, up from Rs 64.67 crore at June-end but below Rs 75.14 crore at 31 March 2026.

The U.S.A. and Hungary line carried Rs 486.15 crore of segment assets and Rs 123.02 crore of liabilities at 30 September 2026, versus Rs 448.83 crore and Rs 113.42 crore respectively at 30 June 2026. The notes state that EKC International FZE, Dubai completed the sale of its entire 80% stake in EKC Europe Zrt., Hungary in April 2026, after the investment had been classified as held for sale during the year ended 31 March 2026; the current results nevertheless continue to present a combined U.S.A. and Hungary geographical line.

India had Rs 980.13 crore of segment assets at 30 September 2026, exceeding the U.S.A. and Hungary and UAE asset lines, alongside Rs 118.47 crore of segment liabilities. Total segment assets were Rs 1,915.32 crore, with Rs 121.84 crore of unallocated assets, while total segment liabilities of Rs 585.46 crore included Rs 264.79 crore of unallocated liabilities.

How did Everest Kanto's segment result translate into consolidated profit?

Everest Kanto converted its Rs 39.92 crore total segment result into profit before tax, or PBT, of Rs 34.12 crore for the September 2026 quarter. The reconciliation included Rs 1.91 crore of net unallocable income, a Rs 2.27 crore foreign-exchange loss and Rs 5.44 crore of finance costs; PBT was Rs 38.54 crore in the June 2026 quarter.

Profit after tax was Rs 19.96 crore for the September 2026 quarter, compared with Rs 30.16 crore in June 2026 and Rs 13.66 crore in September 2025. The lower sequential profit after tax followed a Rs 4.42 crore decline in PBT, while tax expense increased to Rs 8.38 crore from Rs 7.13 crore, according to the consolidated results.

Conclusion

Everest Kanto's September 2026 geographical disclosure shows a divergence across operations: UAE revenue and segment result both declined, producing a Rs 5.80 crore quarterly loss, while U.S.A. and Hungary delivered a Rs 20.78 crore segment result and India remained the largest contributor at Rs 27.67 crore. Together, these movements lifted total segment result to Rs 39.92 crore from Rs 33.08 crore in June 2026.

The next point to watch is whether the UAE line returns to profit, since the filing gives no stated operating reason for its shift from a Rs 73 lakh profit in June 2026 to a loss in September 2026. The treatment of the combined U.S.A. and Hungary line also remains relevant after the April 2026 conclusion of the Hungary stake sale, alongside foreign-exchange variation and finance costs that reduced September-quarter PBT by a combined Rs 7.71 crore.