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.
On the reaction day the stock moved 2.1 pts more than Nifty Microcap 250 and 2.0 pts more than its Industrial Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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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.