Everest Kanto Cylinder Sees Strong Profit Growth in FY26, Boosted by Tax Credit

Consolidated Profit After Tax (PAT) for Q4 FY26 surged by 244.4% to ₹45.7 crore, while full-year PAT for FY26 increased by 50.1% to ₹146.7 crore.

Reader Takeaway: Strong annual profit growth and margin expansion contrasted by one-off tax benefits and subdued international revenue.

What just happened

Everest Kanto Cylinder Limited announced its financial results for the fourth quarter and full year ending March 31, 2026 (FY26). The company reported a substantial 244.4% year-on-year increase in consolidated profit after tax (PAT) for Q4 FY26, reaching ₹45.7 crore. This surge was primarily attributed to a one-time deferred tax credit of ₹24.0 crore.

For the full fiscal year FY26, consolidated PAT grew by 50.1% to ₹146.7 crore, compared to ₹97.7 crore in FY25. Consolidated revenue for FY26 stood at ₹1,470.6 crore, a slight decrease of 1.9% from ₹1,499.2 crore in the previous fiscal. However, consolidated EBITDA for FY26 improved by 15.7% to ₹203.0 crore.

Why this matters

The significant profit jump in Q4, although aided by a tax credit, indicates underlying operational improvements. The overall growth in annual PAT and EBITDA suggests a healthier financial performance for the fiscal year. The recommended dividend of ₹0.70 per share offers a direct return to shareholders, making the stock potentially more attractive.

The backstory

Everest Kanto Cylinder Limited is a manufacturer of various types of cylinders, including LPG, CNG, and industrial gas cylinders. The company has a significant manufacturing capacity of approximately 1.8 million cylinders annually. Its domestic business, focused on India, has shown resilience, with standalone EBITDA margins improving in FY26.

What changes now

Investors will be looking at the sustainability of this profit growth, especially after adjusting for the one-time tax benefit. The company's ability to maintain its improved EBITDA margins and revenue growth in the coming quarters will be crucial. The focus on the domestic market's resilience is a key positive.

Risks to watch

Subdued international revenue in Q4 FY26 is a concern, indicating potential challenges in overseas markets or a strategic shift towards domestic focus. The impact of the deferred tax credit on Q4 PAT needs to be factored in for a true understanding of core profitability. Investors should analyze future results excluding such one-off items.

Peer comparison

(Data not available in the filing)

Context metrics (time-bound)

• Consolidated Revenue FY26: ₹1,470.6 crore (down 1.9% YoY)
• Consolidated EBITDA FY26: ₹203.0 crore (up 15.7% YoY)
• Consolidated PAT FY26: ₹146.7 crore (up 50.1% YoY)
• Consolidated Revenue Q4 FY26: ₹358.2 crore (down 15.1% YoY)
• Consolidated EBITDA Q4 FY26: ₹39.6 crore (up 4.5% YoY)
• Consolidated PAT Q4 FY26: ₹45.7 crore (up 244.4% YoY)
• Dividend Recommended: ₹0.70 per share (Face Value: ₹2)

What to track next

Investors should monitor the company's performance in international markets and its ability to sustain domestic growth. Future earnings reports will be key to understanding if the Q4 PAT jump was a temporary boost or indicative of sustained profitability. The dividend payout also signals confidence from the management.