Everest Kanto Cylinder Limited (EKC) is a manufacturer of high-pressure seamless gas cylinders, listed on NSE and BSE.
Operates as a clean energy solution company, focusing on CNG, industrial, and defense applications.
Headquartered in Mumbai, India, with operations in the U.S., UAE, and expanding into Egypt and Mundra.
Primary products: CNG cylinders for automotive and industrial applications, composite cylinders (Type 3), and defense/semiconductor equipment.
Diversified into hydrogen storage solutions and expanding into clean energy markets.
Serves commercial vehicle, industrial, and OEM markets with a focus on CNG infrastructure growth.
Growth thesis
Everest Kanto produces high-pressure gas cylinders for CNG, industrial gases, defense, and semiconductors. Key segments include India (15% capacity boost from Mundra lines 2-3 by Q4 FY26), US (Type-4 cylinder expansion with $5.5M capex adding Rs. 100 cr incremental revenue by FY28), and Egypt (Rs. 50-60 cr FY28 run-rate post May 2026 launch). Growth is driven by a $75M US order book (18-24M execution), Egypt’s 40%-80% utilization ramp-up, and India’s 15-17% EBITDA margins from defense/semiconductor mix. The business targets 15-20% annual revenue growth through FY27, with hydrogen/biogas as long-term tailwinds. Key execution risk: timely ramp-up of Egypt and Mundra facilities to meet capacity and margin targets.
Why is Everest Kanto Cylinder Limited stock rising?
Mundra greenfield facility commenced operations; two additional production lines expected to be established in coming months, increasing total capacity by ~15%.
Egypt facility expected to commence operations shortly (by May–June 2026); ramp-up to 40% utilization initially, then 80% over time; first-year revenue guidance of Rs. 50–60 crores.
US subsidiary approved $5.5 million capex for larger diameter and Type 4 cylinders, backed by customer contracts; expected to add ~Rs. 100 crores incremental revenue in FY27–FY28.
US order book stands at US$75 million, executable over 18–24 months, providing revenue visibility.
India business sustaining EBITDA margins in the 15%–17% range, driven by favourable product mix including higher-value segments like defence and semiconductors.
Research report
companyname: Everest Kanto Cylinder Limited
ticker: EKC
sector: Manufacturers of High Pressure Seamless Gas Cylinders / Clean Energy Solution Company
Everest Kanto Cylinder Limited manufactures high-pressure seamless steel gas cylinders. If you pick up a cylinder that stores CNG in a taxi, transports oxygen to a hospital, or holds hydrogen for an industrial plant, there is a good chance EKC made it. The company sells across three segments: CNG cylinders for vehicles and stations, industrial gas...
capex, margin expansion, geographic expansion, order book surge
Growth guidance
15-20% revenue growth for FY27; 15-17% EBITDA margins
Guidance upgraded
Management consistency
mixed
RS rating: 26Stage: Stage 4
Get valuation models, detailed research reports, thematic primers, one-pagers, risk analysis, growth triggers, bear case, capex tracker, walk the talk, and more for Everest Kanto Cylinder Limited and 4,900+ companies.