Everest Kanto Q1FY27: consol PAT -41% YoY (-23% adj), US-Hungary slump hits margins
PAT -41.53% YoY · revenue -10.49% · margins compressing
₹346.31 Cr
-10.49% YoY
₹30.16 Cr
-41.53% YoY
8.46%
-4.7pp YoY
₹2.68
Everest Kanto Cylinder's consolidated revenue fell to ₹346.31 Cr, down 10.5% YoY and 3.3% QoQ, while consolidated PAT came in at ₹30.16 Cr, down 41.5% YoY as reported and 34.0% QoQ. The YoY comparison is distorted by a one-off: Q1 FY26's base included a ₹12.63 Cr exceptional gain from an employee-retention-credit tax refund at US subsidiary CP Industries Holdings. Stripping that out, adjusted YoY PAT decline is closer to 23% — still a clear deterioration, not the headline-implied collapse, but a real one nonetheless. There is no street consensus available for this quarter (no analyst previews found), so vsStreet is unknown.
Q1 FY-2027 vs prior quarters
The drag is concentrated overseas. Segment results (pre-forex/finance/tax) show USA & Hungary collapsing to ₹4.84 Cr from ₹26.85 Cr a year ago (-82%), while India, the largest segment, held up comparatively better at ₹28.71 Cr vs ₹34.05 Cr (-15.7%). Standalone (India-only) PAT of ₹21.93 Cr was down just 15.9% YoY, underscoring that the consolidated miss is an international-segment story, not a domestic one. Group NPM compressed to 8.46% of total income from 13.13% a year ago; OPM (EBITDA-based) fell to 13.68% from 19.11% YoY, though it improved sequentially from 11.49% in Q4 FY26. Part of the USA/Hungary distortion traces to the April 2026 completion of the sale of EKC's 80% stake in EKC Europe Zrt, Hungary — this quarter reflects a changed consolidation scope for that entity versus the year-ago period.
The stock went into the print at ₹116.45, up 1.8% over the past month of trading.
What the summary numbers don't show
Consolidated basic EPS ₹2.68 (Q1 FY26 — ₹4.60); non-controlling interests' share of profit ₹0.13 Cr.
Management reported a healthy FY26 performance characterized by improved profitability, with consolidated revenues at Rs. 1,470.6 crore and EBITDA increasing by 15.7% YoY to Rs. 203 crore, driven by margin expansion and operational efficiencies. The company anticipates continued strong demand in India for CNG and indus
— This quarter: missed
Management's prior (June 2026) commentary pointed to "continued strong demand" for CNG and industrial gas applications in India and touted the Mundra facility and upcoming Egypt operations as growth drivers; against that, India segment revenue actually declined 14.4% YoY to ₹202.74 Cr this quarter, running counter to the stated demand outlook — call it missed rather than met, though management gave no quantified guidance to test against precisely. The quarter's other developments — a new CEO (Narender Gupta, appointed July 2026) and a board-meeting reschedule from August 14 to August 13 — are governance-level items with no direct read on these numbers. No fresh press release commentary from management was available in the context to cross-check against the print.
W1
USA & Hungary segment profitability post the April 2026 Hungary Zrt divestment — this quarter reflects only a partial-scope comparison versus Q1 FY26's ₹26.85 Cr segment result.
W2
India segment revenue trend against management's stated expectation of continued strong CNG/industrial-gas demand, after a 14.4% YoY decline this quarter.
W3
Consolidated NPM trajectory from 8.46% this quarter versus the 12.75-13.13% run-rate of the trailing two quarters, as Mundra and Egypt capacity ramps.
Figures in ₹ lakhs in source, converted to Cr. No exceptional item in Q1 FY27 (both statements); year-ago consolidated quarter (Q1 FY26) carried a ₹12.63 Cr exceptional gain (ERC tax refund at US subsidiary CP Industries) that inflates the YoY PAT base — adjusted YoY computed excluding it. Consolidated PAT of ₹30.16 Cr includes ₹0.13 Cr attributable to non-controlling interests (₹30.03 Cr to equity shareholders, basis for EPS ₹2.68). Standalone PAT fell only 15.9% YoY vs consolidated PAT falling 41.5% YoY (raw) — a material basis divergence driven by the international segments. EKC Europe Zrt (Hungary) stake sale concluded April 2026, mid-quarter, affecting USA/Hungary segment comparability.