Everest Kanto Cylinder Limited has informed the Exchange about Credit Rating- Revision
EKC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CARE Ratings has upgraded Everest Kanto Cylinder Limited's (EKCL) credit ratings on both its long-term and short-term bank facilities. Long-term rating improved from CARE BBB+; Positive to CARE A-; Stable, while short-term rating moved up from CARE A2 to CARE A2+. The total long-term facility limit was also enhanced from ₹144 crore to ₹164 crore, and short-term limits rose from ₹46 crore to ₹63 crore. The upgrade is driven by strong ~23% revenue growth in FY25 to ₹1,499 crore, robust CNG cylinder demand, healthy profitability (Q1FY26 margin at 15.85%), and an established market position. Bank facility amounts have also been increased to support ongoing capacity expansion in India (Mundra) and Egypt, costing ~₹320 crore. Outlook is Stable, with concerns noted around raw material price volatility, forex exposure, and project execution risk in Egypt.
Positive for shareholders and the stock — the rating upgrade reflects stronger financial health, better profitability, and improved business momentum, which could lower borrowing costs and enhance investor confidence. However, watch remains on execution of the debt-funded capex and exposure to high-cost Egypt project debt.