ECONOMIC OVERVIEW
Global Economy: The global economy remained relatively resilient through 2025 despite persistent geopolitical tensions, trade policy uncertainties, and uneven recovery trends across major economies. Growth continued to be supported by technology-led investments, resilient services activity, easing financial conditions, and gradual recovery in global trade. However, the escalation of conflict in the Middle East in early 2026 significantly increased risks related to energy prices, inflation, supply chain disruptions, and financial market volatility. Global growth is projected at 3.1% in 2026, while global inflation is expected to rise to 4.4% reflecting elevated energy prices, higher commodity costs, and continued geopolitical uncertainty.
Advanced economies continued to witness mixed growth trends, supported by consumer spending and technology investments, although inflationary pressures and fiscal challenges remained key concerns. Emerging markets and developing economies faced relatively higher risks from elevated commodity prices, currency volatility, and tighter financial conditions. At the same time, global trade and investment patterns continued to evolve with increasing focus on supply chain diversification, regional trade partnerships, digital transformation, artificial intelligence adoption, and energy transition initiatives. These structural trends are expected to remain key long-term drivers shaping the global economic landscape and business environment. Source: IMF World Economic Outlook - April 2026.
Indian Economy: Indias economy is expected to remain resilient, with GDP growth for FY2026 projected at around 7.0% to 7.4%, supported by domestic demand, government capital expenditure, and steady investment activity. Growth continues to be driven by private consumption, infrastructure development, and manufacturing, even as global uncertainties persist.
The outlook continues to be supported by government-led capital expenditure, improving private investment intent, stable urban consumption and a favourable services backdrop. Inflation is expected to remain broadly manageable, although risks from global tariff actions, supply-side disruptions and volatility in energy prices remain important monitorable. Any sharp movement in crude oil and broader energy prices could have implications for inflation, input costs and overall business sentiment. Even so, India remains relatively well placed, with domestic demand and infrastructure-led development continuing to provide an important cushion against external shocks. Source: CRISIL India Outlook and Economic Commentary 2026 - March 2026
INDUSTRY SCENARIO
Indias energy ecosystem is undergoing a gradual but meaningful shift towards cleaner fuels, greater supply diversification and deeper last-mile infrastructure. Natural gas continues to be positioned as an important transition fuel within this framework, supported by policy interventions, pricing reforms, infrastructure creation and the expansion of downstream consumption centres. The Government has reiterated its target of increasing the share of natural gas in Indias energy mix to 15% by 2030, while also continuing to strengthen the policy environment around gas transmission, city gas distribution and emerging green fuel alternatives. This creates a supportive long-term backdrop for businesses linked to the storage, handling and transportation of gaseous fuels.
A major enabler of this transition has been the steady expansion of gas infrastructure across the country. Under the One Nation, One Gas Grid vision, Indias natural gas pipeline network has expanded significantly, helping connect supply sources with new demand centres. In parallel, the City Gas Distribution network has widened its reach across a large number of geographical areas and has become a key mechanism for driving adoption across transport, domestic and industrial segments. This has particularly supported the growth of CNG as a cleaner mobility fuel, with rising station availability and improving access across newer markets aiding broader adoption. The widening reach of this infrastructure is especially relevant for manufacturers such as EKC, as larger gas networks and growing CNG usage typically require greater deployment of cylinders, cascades and allied pressure containment solutions for storage, transport and distribution.
The next phase of growth is likely to come from conventional natural gas usage and adjacent gas-based applications such as Compressed Biogas and Green Hydrogen. PNGRBs projections indicate that the CGD sector is expected to be the primary growth driver for natural gas demand, with consumption projected to increase materially by 2030 from FY24 levels. At the same time, policy momentum behind CBG blending and the National Green Hydrogen Mission is widening the addressable market for specialised gas storage and transportation systems. This is important for EKC because the Company operates at the intersection of energy transition and engineered containment, where safety, reliability, pressure management, and application-specific product capability are critical differentiators.
Broader industrialisation also supports long-term demand for compressed gas solutions. Indias manufacturing sector recorded healthy growth with sectors such as chemicals, steel, healthcare, electronics, and infrastructure continuing to expand. These industries depend on a range of gases, including oxygen, nitrogen, argon, hydrogen and specialty gases for fabrication, process efficiency, healthcare delivery, testing and controlled-environment applications. As these sectors scale, the requirement for safe on-site storage, bulk movement and cylinder-based distribution also rises, strengthening the medium- to long-term opportunity for gas containment solution providers.
Taken together, the expansion of natural gas infrastructure, the rising adoption of CNG, the emergence of newer gaseous fuels such as Compressed Biogas and Green Hydrogen, and the continued growth in industrial gas usage are creating a constructive environment for the compressed gas cylinder industry. These trends are steadily widening the application base for high-pressure gas storage and transportation solutions across mobility, industrial and clean energy segments. Companies with strong manufacturing capabilities, proven safety standards, technological adaptability and a diversified product portfolio are likely to be well positioned to benefit from these structural shifts. In this context, EKC remains closely aligned with several of the most important trends shaping the evolving gas-based economy.
GASIFICATION OF THE INDIAN ECONOMY
? Target to increase share of natural gas in energy mix from 6.7% to 15% by 2030.
? Approximately US$67 billion investment in the Indian Gas Sector over the next 5-6 years.
? City Gas Distribution (CGD) rollout update: the network now covers nearly 100% of Indias geographical area (excluding islands).
? Introduction of a unified tariff structure for gas pipelines to promote a more integrated and accessible gas market.
? National Green Hydrogen Mission aims to make India a global hub for Green Hydrogen.
? Planned growth in the number of CNG stations to 18,336 stations by 2034.
? Government policies supporting public-private partnerships (PPPs) to accelerate infrastructure development in the gas sector. Source: Ministry of Petroleum and Natural Gas, Government of India; Industry News Article.
DOMESTIC TRENDS
Indias domestic energy market continues to move towards cleaner fuels, supported by economic growth, urbanisation, infrastructure creation, and a stronger policy push for lower-emission energy pathways. Natural gas remains an important part of this transition, with the Government continuing to target a rise in its share of the energy mix. This broader shift is relevant for the compressed gas ecosystem, as the expansion of gas-based applications typically drives demand for high-pressure cylinders, cascades and other storage and transportation solutions used across mobility and industrial segments.
One of the most visible domestic trends is the deepening penetration of gas access across urban and semi-urban India. PNGRB has stated that the CGD network now covers 307 geographical areas and nearly 100% of the countrys geographical expanse excluding islands. At the same time, the regulator has set an ambitious Minimum Work Programme target covering extensive CNG station rollout and significant pipeline infrastructure expansion over time. The scale of this planned build-out underlines the increasing mainstreaming of gas in Indias domestic energy and mobility mix and supports the long-term need for cylinders and cascades used in transport logistics, daughter-booster operations, industrial supply and last-mile gas movement.
Domestic trends are also being shaped by the emergence of newer gas-based opportunities alongside conventional natural gas. Mandatory CBG blending in CNG from FY2025-26 has now come into effect, creating a policy-backed pathway for cleaner gaseous fuels within the transport ecosystem. At the same time, the National Green Hydrogen Mission is supporting the development of a broader hydrogen ecosystem, including storage, transport and utilisation infrastructure. These developments are important because they expand the long-term application scope for specialised gas containment solutions beyond traditional CNG demand.
In parallel, Indias domestic manufacturing base continues to strengthen, which supports demand for industrial gases across sectors such as metals, chemicals, healthcare, engineering and electronics. This broadening use of compressed gases across the industrial economy creates a favourable backdrop for the cylinder industry. Taken together, stronger gas infrastructure, rising CNG penetration, policy support for CBG and Green Hydrogen, and growth in industrial gas consumption are shaping a constructive domestic demand environment for the broader compressed gas value chain.
Geographical Coverage of CGD connection in India by bidding round, 2008-2024 [Chart showing cumulative % of area, population covered and cumulative geographical areas] Source: IEA analysis based on data from PNGRB
This reinforces the importance of CNG as a major application area within Indias gas-based energy transition.
Overall, the combination of policy support, deeper infrastructure, wider station availability and rising acceptance of gas-based mobility is creating a constructive long-term environment for the CNG ecosystem. As the market continues to expand across geographies and use cases, the need for high-pressure cylinders, cascades and related gas handling solutions is expected to remain integral to the development of the segment. Source: Ministry of Petroleum & Natural Gas; Petroleum and Natural Gas Regulatory Board (PNGRB)
CNG
Compressed Natural Gas continues to be one of the most important pillars of Indias transition towards cleaner mobility. It offers a relatively cleaner and often more economical fuel option for public transport, taxis, light commercial vehicles and select passenger vehicle segments, while also supporting the countrys broader goals of reducing emissions and lowering dependence on liquid fossil fuels. The continued policy focus on increasing the share of natural gas in Indias energy mix provides a supportive backdrop for the long-term growth of the CNG ecosystem.
The expansion of City Gas Distribution infrastructure remains the biggest enabler for CNG adoption. The regulators rollout targets also include a large-scale build-out of CNG stations over time, reflecting the increasing mainstreaming of gas-based mobility across the country. This widening footprint is helping extend CNG access beyond major metropolitan areas into newer urban and semi-urban markets, thereby broadening its addressable user base.
CNG station rollout has continued steadily across more than 300 geographical areas, indicating ongoing execution on the ground. This is important because station availability remains central to consumer adoption, fleet conversion and the wider use of CNG in commercial transportation. As refuelling infrastructure becomes more widespread, it strengthens the operating ecosystem for gas transportation, station supply and daughter-booster logistics, all of which rely on safe and reliable high-pressure storage and transport systems.
The demand outlook for CNG also remains favourable within the broader gas economy. PNGRBs natural gas projections indicate that City Gas Distribution is expected to be the largest driver of incremental natural gas demand by 2030, with CGD accounting for a meaningful share of overall growth. PNGRB also notes that the transport segment is expected to see strong growth in gas consumption, aided by policy support, cleaner fuel preference and expanding infrastructure.
Trend in CNG fuelling stations across the country [Chart showing number of CNG stations from FY2014 to 2034P, with target 18,336 by 2034]
CNG fuelling infrastructure in India has advanced significantly, resulting in much wider fuel availability across the country.
The Indian government aims to significantly expand the CNG fuelling infrastructure, with over 18,336 stations planned by 2034. These initiatives are intended to improve CNG accessibility and drive greater consumer adoption of this powertrain option.
Compressed Biogas
Compressed Biogas is emerging as an important renewable component of Indias evolving gas economy. Produced from agricultural residue, organic waste, municipal waste and other biodegradable feedstock, CBG supports multiple national priorities including cleaner fuel adoption, waste management, rural income generation and lower fossil fuel dependence. Since purified and compressed biogas can be used in applications similar to CNG, it is becoming an increasingly practical addition to Indias broader gaseous fuel mix.
Policy support for the segment has strengthened materially in recent years. The Government approved phased blending of CBG in CNG and PNG, with mandatory blending commencing from FY2025-26. The blending obligation is creating a clearer demand pathway for the sector. This marks an important shift from an incentive-led framework to a more structured and compliance-driven market mechanism.
The ecosystem is also seeing stronger execution on the ground. The Ministry of Petroleum & Natural Gas stated in its 2025 year-end review that, under the SATAT initiative, over 130 CBG plants had been commissioned as of 1 November 2025, with several more under construction. Separately, Government data also highlighted that CBG generation capacity had expanded to 150 projects with cumulative capacity of 1,211 TPD as of March 2025, while 59 CBG plants with aggregate capacity of 684.33 TPD were commissioned during 2025 up to November.
Support measures have also been extended to improve the viability of the value chain, including financial assistance for pipeline connectivity and biomass aggregation, along with policy guidelines for comingling CBG with natural gas in CGD networks. As the segment scales further, the need for compression, storage and transportation infrastructure is expected to rise in tandem, supporting demand for high-pressure cylinders, cascades and related gas handling solutions. Source: Ministry of Petroleum & Natural Gas.
Compressed Biogas Blending Obligation [Chart showing: Voluntary blending FY2024-25, 1.0% Mandatory FY2025-26, 3.0% Mandatory FY2026-27, 4.0% Mandatory FY2027-28, 5.0% Onwards FY2028-29] Source: World Biogas Association, India Policy and Market Briefing 2024.
Green Hydrogen
Green Hydrogen is emerging as an important long-term pillar of Indias clean energy transition, with potential applications across refining, fertilisers, mobility, shipping, steel and other hard-to-abate sectors. The National Green Hydrogen Mission, approved with an outlay of Rs. 19,744 crore aims to position India as a global hub for the production, utilisation and export of green hydrogen and its derivatives. The Mission also targets the development of at least 5 MMTPA of Green Hydrogen production capacity by 2030, supported by large-scale renewable energy addition and ecosystem creation.
A key feature of the opportunity lies not only in production, but also in the enabling infrastructure required for storage, transportation and downstream use. Official Mission documents and the National Green Hydrogen Mission portal explicitly highlight the need for regulations, standards and infrastructure covering hydrogen storage, transport, mobility and utilisation. The Mission also envisages Green Hydrogen Hubs, with support for the development of associated infrastructure in such regions. This is particularly relevant for the compressed gas value chain, as hydrogen applications will require safe, high-integrity pressure containment and transport solutions.
Progress on the ground has started to take shape. Government updates indicate that, by May 2025, 19 companies had been allocated annual production capacity of 862,000 tonnes of Green Hydrogen and 15 firms had been awarded 3,000 MW of annual electrolyser manufacturing capacity. India has also launched pilot projects in mobility, shipping and steel, while the Green Hydrogen Certification Scheme was introduced in April 2025 to support credibility and market development. Together, these steps indicate that India is gradually moving from policy intent to ecosystem creation, which should support long-term demand for specialised storage and transportation solutions across the hydrogen value chain. Source: Ministry of New and Renewable Energy.
Hydrogen demand in India expected to increase 5-fold by 2050 [Chart showing hydrogen demand by sector: Power, Transport, Industry, from 2020 to 2050P] Source: The Energy and Resources Institute (TERI)
Semiconductor
Indias semiconductor industry is emerging as a strategic pillar within the countrys broader manufacturing and technology ecosystem, supported by strong policy momentum, rising investments and an increasing focus on technological self-reliance. The Governments India Semiconductor Mission seeks to accelerate the development of a comprehensive domestic ecosystem spanning fabrication, assembly, packaging, testing and chip design. India Semiconductor Mission 2.0 further strengthens this direction by focusing on semiconductor equipment, materials, advanced manufacturing technologies and stronger domestic supply chains. As of December 2025, 10 semiconductor projects with investments of approximately Rs. 1.60 lakh crore had been approved across multiple states, underlining both the scale of the opportunity and Indias long-term commitment to building domestic semiconductor capabilities.
Semiconductors are critical to a wide range of industries, including electronics, automobiles, telecommunications, defence, industrial automation, artificial intelligence and renewable energy systems. Their production also requires the use of ultra-high purity gases such as nitrogen, hydrogen, argon, helium and other specialty gases across highly sensitive and precision-driven processes. As manufacturing capacity expands in India, demand for the safe storage, handling and transportation of these gases is also expected to rise. In this context, gas cylinders play an important enabling role in supporting reliable gas distribution and containment across advanced manufacturing environments. As India strengthens its position as a long-term semiconductor manufacturing hub, the sector is expected to emerge as an important future demand driver for industrial gas infrastructure and high-performance cylinder solutions.
Size of the Indian Semiconductor Market (USD Bn) [Chart: FY23 $38, FY24-25 $45-$50, FY30 $100-$110] Source: Ministry of Electronics and Information Technology
Industrial Gases
Indias industrial landscape is undergoing steady expansion, driven by robust manufacturing growth, infrastructure development, and supportive economic policies. This growth is translating into increasing demand for industrial gases across key sectors such as metals, chemicals, healthcare, and emerging energy applications. Gases including oxygen, nitrogen, hydrogen, and carbon dioxide are becoming increasingly critical to modern industrial processes, supporting efficiency, precision, and evolving sustainability requirements.
In this ecosystem, gas cylinders serve as a fundamental enabler by facilitating the safe storage, movement, and on-site availability of industrial gases across diverse applications. As industries shift towards cleaner production processes and advanced technologies, the need for reliable, high performance cylinder solutions is expected to strengthen. Cylinders will continue to play a key role in supporting industrial operations while aligning with the broader transition towards sustainable manufacturing practices.
Supply to Medical Establishments: Medical gas systems form a critical backbone of healthcare delivery, ensuring the uninterrupted supply of essential gases across hospitals and clinical facilities. These gases, including oxygen, medical air, nitrous oxide, and carbon dioxide, are indispensable across a wide range of applications such as critical care, anaesthesia, and emergency treatment.
With continued investments in healthcare infrastructure and an increasing focus on strengthening critical care capacity, demand for medical gases is expected to remain strong. Gas cylinders are central to this system, enabling safe storage, efficient transport, and reliable supply at the point of care. Their role is particularly crucial in emergency scenarios, where oxygen cylinders serve as lifesaving support systems and ensure continuity of treatment.
Defence
Indias defence sector is witnessing increased investment and technological advancement, leading to growing demand for industrial gases across manufacturing, maintenance, and operational activities. Gases such as oxygen, nitrogen, and hydrogen are widely used in applications ranging from fabrication and testing to propulsion and system support in advanced defence equipment.
Gas cylinders are integral to multiple defence applications, including life support systems, safety mechanisms, and specialised operational requirements such as buoyancy control in submarines. As defence capabilities evolve, with increased focus on aerospace systems, unmanned platforms, and modern combat technologies, the demand for robust and reliable gas storage solutions is expected to rise. Cylinders play a crucial role in ensuring safety, operational efficiency, and mission readiness.
Fire Safety Equipment and Fire Suppression Systems: Fire safety systems are essential for protecting infrastructure, assets, and human life across industrial and commercial environments. These systems utilise a range of extinguishing agents, including inert gases such as carbon dioxide, particularly in applications where conventional water-based systems are not suitable.
Gas cylinders are a core component of these systems, enabling the secure storage and rapid deployment of extinguishing agents during emergencies. As regulatory standards tighten and infrastructure becomes more complex, the demand for high quality, safety compliant cylinder solutions is expected to increase. Cylinders play a vital role in ensuring the effectiveness and reliability of fire suppression systems across diverse applications.
EKCS BUSINESS FRAMEWORK
Established in 1978, Everest Kanto Cylinder Limited (EKC) is a global manufacturer of seamless gas cylinders and a provider of clean energy storage solutions. With over four decades of experience, the Company has built a strong track record of delivering high-quality, high-pressure cylinder solutions across a diverse range of industries. The Company operates through 3 advanced manufacturing facilities in India located at Tarapur (Maharashtra), Kandla SEZ (Gujarat), and Mundra (Gujarat), along with international units in Jebel Ali Free Zone (Dubai), Egypt, and Pittsburgh, Pennsylvania (USA). These facilities collectively provide an annual production capacity of over 1.5 million cylinders, supporting both domestic and global demand.
EKC offers a comprehensive portfolio of industrial, CNG, and jumbo cylinders for storage of gases such as oxygen, hydrogen, nitrogen, argon, helium, and air. Its products cater to critical applications across sectors including manufacturing, healthcare, fire safety, aerospace and defence, and automotive, reflecting a well-diversified customer base.
The Company has established a strong presence in both domestic and international markets and is well positioned to benefit from growing demand for industrial and clean energy gases. Backed by advanced manufacturing capabilities, technical expertise, and a strong focus on quality and safety, EKC continues to build long term relationships with leading customers worldwide.
GLOBAL OPERATIONS
Dubai EKC International FZE (EKC FZE), a wholly owned subsidiary of Everest Kanto Cylinder Limited, is located in the Jebel Ali Free Zone, Dubai. Established in 2004, the facility has developed into a key manufacturing hub for high pressure gas storage solutions, including industrial cylinders, CNG cylinders, jumbo tubes, cascades, multiple element gas containers, and composite cylinders.
The Dubai facility serves as an important export base, catering to markets across Europe, Latin America, the United States, CIS, and Africa. Its products support a wide range of sectors such as automotive, healthcare, fire safety, and emerging hydrogen applications. Supported by strong research and development capabilities and robust quality systems, the facility ensures adherence to international standards and certifications.
USA In the United States, EKC operates through its subsidiary, CP Industries Holdings, Inc. (CPI), based in McKeesport, Pennsylvania. CPI specialises in the manufacture of large seamless steel pressure vessels and offers a broad range of solutions, including ground storage systems, mobile gas transport units, onboard vehicle cylinders, and customised engineered vessels for industrial gases, alternative fuels, and defence applications.
CPI offers a diverse range of products, including ground storage systems, mobile gas transport solutions, onboard vehicle cylinders, and custom engineered vessels. The Company has a strong presence across sectors such as industrial gases, alternative fuels, chemical and petrochemical processing, and defence. With ongoing investments to enhance capabilities in larger diameter and Type 4 cylinders, the facility is well positioned to address evolving demand in hydrogen and other emerging energy applications, while meeting stringent regulatory and performance standards.
EGYPT EKCs Egypt facility represents a key addition to its global manufacturing footprint and strengthens its presence in the Middle East and Africa region. Being commissioned, the facility is strategically positioned to cater to growing demand for gas cylinders across domestic and regional markets, supported by increasing industrial activity and expanding gas infrastructure.
The plant is expected to serve a wide range of applications, including industrial gases, CNG, and [text cut off]
STRENGTHS
Leadership Position in the Domestic Market As a pioneer in Indias high pressure seamless cylinder industry since 1978, EKC has leveraged its early entry to build a strong leadership position in the domestic market. Its extensive distribution network, efficient supply chain, and long-standing customer relationships continue to reinforce its position as a leading gas cylinder manufacturer in India.
Strong and Diversified Manufacturing Base EKC operates advanced manufacturing facilities across India, Egypt, the UAE, and the United States, enabling it to cater to a diverse global customer base. The Companys plants comply with stringent international and domestic standards, including ISO, EN, and IS certifications, ensuring consistent quality and regulatory compliance across markets.
Established Global Presence EKC has built a strong international footprint, with presence across more than 25 countries, including key markets in Southeast Asia, the Middle East, the United States, Europe, South America, and the CIS region. Its adherence to global quality standards, supported by reliable supply chain capabilities, has enabled the Company to compete effectively and build a strong reputation in international markets.
Experienced Leadership Team The Company is guided by a seasoned management team with deep industry expertise and extensive experience within the organisation. Their strategic direction and operational capabilities have been instrumental in driving EKCs sustained growth and strengthening its market position across geographies.
Focus on Technology and Innovation EKC continues to invest in technology to enhance product safety, efficiency, and performance. The Company is advancing its capabilities in Type 3 composite cylinders in India, while its US subsidiary, CPI, has established expertise in Type 4 composite cylinders using advanced materials. This positions EKC well to introduce next generation solutions as market adoption improves.
Broad and Versatile Product Portfolio The Company offers a wide range of products, from industrial cylinders to jumbo and composite cylinders, with capacities ranging from 1 litre to 3,000 litres. This diversified portfolio enables EKC to serve multiple sectors, including industrial manufacturing, automotive, healthcare, defence, and fire safety.
Strong Customer Relationships EKC has built long term relationships with its customers, supported by a consistent track record of quality and reliability. Given the critical nature of gas cylinder applications and stringent approval processes, the Companys focus on safety and performance has enabled it to maintain trust across key sectors over time.
Robust Financial Foundation EKC maintains a strong financial foundation, supported by a near net debt free balance sheet. This provides the Company with the flexibility to invest in capacity expansion, research and development, and strategic initiatives, while maintaining resilience in a dynamic operating environment.
CHALLENGES, RISKS AND CONCERNS
Sensitivity of CNG Demand to Gas Prices The adoption of CNG vehicles remains influenced by fluctuations in natural gas prices. Any sustained increase in gas prices could reduce the cost advantage of CNG over conventional fuels such as petrol and diesel, potentially impacting consumer adoption and market growth. While CNG continues to be a cleaner fuel alternative, short term price volatility may affect demand trends. However, continued policy support and incentives from the government are expected to sustain long term growth in the segment.
Volatility in Raw Material Costs The Companys operations are exposed to fluctuations in key input costs, particularly seamless steel tubes, which form a significant portion of total raw material consumption. Variations in steel prices, driven by global supply demand dynamics and trade conditions, can impact margins. EKC mitigates this risk through diversified sourcing, strong supplier relationships, and continuous monitoring of price trends across domestic and international markets.
Competitive Landscape EKC operates in an increasingly competitive environment, with rising competition from domestic manufacturers as well as imports. This may exert pressure on pricing and margins over time. The Company continues to focus on product quality, customer relationships, and innovation to differentiate its offerings and maintain its position in both domestic and global markets.
Technology Evolution and Innovation Requirements Advancements in cylinder technologies, particularly in composite materials, require significant investment and may pose challenges in terms of cost and scalability. The transition to newer technologies can be gradual, especially in price sensitive markets. EKC addresses this through a phased approach to innovation, ongoing investments in research and development, and continuous alignment with evolving industry requirements.
Foreign Exchange Exposure The Company is exposed to foreign exchange risk due to its dependence on imported raw materials and international operations. Adverse currency movements may impact input costs and overall profitability. EKC actively monitors currency fluctuations and evaluates appropriate hedging strategies as part of its financial risk management framework.
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? Shift Towards Electric Mobility: The increasing adoption of electric vehicles represents a long-term structural shift that could impact demand for gas based mobility solutions. However, challenges such as high initial costs, limited charging infrastructure, range constraints, and concerns around battery lifecycle and sourcing continue to influence the pace of EV adoption. In parallel, Indias multi fuel approach, including the promotion of natural gas and compressed biogas, supports a balanced energy transition, sustaining the relevance of gas based fuels and associated cylinder demand.
? Legal and Compliance Risks: As a global organisation, EKC is exposed to legal and regulatory risks, including potential litigation arising from commercial, contractual, or employment related matters. While such instances may be limited, they can result in financial implications and management bandwidth constraints. The Company maintains a robust compliance and legal framework to effectively manage and mitigate such risks.
FINANCIAL AND OPERATIONAL PERFORMANCE
The discussions in this section relate to the consolidated, Rupee-denominated financial results pertaining to the year ended March 31, 2026. The financial statements of the Company and its subsidiaries (collectively referred to as EKC or the Company) are prepared in accordance with the Indian Accounting Standards (referred to as Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the consolidated financial statements.
Consolidated Revenue (?s. in crores) [Chart: FY22 1,699; FY23 1,275; FY24 1,223; FY25 1,489; FY26 1,471]
| India | UAE | USA & Hungary |
| FY22: 1,268 | FY22: 241 | FY22: 264 |
| FY23: 798 | FY23: 199 | FY23: 263 |
| FY24: 770 | FY24: 182 | FY24: 263 |
| FY25: 948 | FY25: 175 | FY25: 374 |
| FY26: 967 | FY26: 152 | FY26: 356 |
EBITDA (?s. in crores) and EBITDA Margin [Chart: FY22 392 (23.1%), FY23 161 (12.6%), FY24 160 (13.1%), FY25 176 (11.7%), FY26 203 (14%)]
PAT (?s. in crores) and PAT Margin [Chart: FY22 265 (15.6%), FY23 76 (6.0%), FY24 98 (8.0%), FY25 96 (6.5%), FY26 147 (10%)]
FY2026 marked a year of stabilisation and gradual recovery for EKC, with demand gaining momentum in the second half of the year after a relatively subdued first half. The Company witnessed improving traction across key segments, supported by a pickup in order flows and better utilisation levels. The CNG segment continued to be a core contributor to the business, accounting for a significant share of revenues. While certain higher margin segments remained under pressure, the overall margin profile showed signs of improvement as the year progressed. The industrial segment delivered steady performance, providing stability to the Companys overall financial performance.
The following table gives an overview of the Consolidated Financial Results of the Company:
| Particulars | (\u20b9 in crores) FY25 | FY26 |
| Income from Continuing Business Operation | 1,499 | 1,471 |
| Earnings before interest, tax, depreciation and amortization (before other income) | 176 | 203 |
| Profit Before Tax (PBT) | 130 | 160 |
| Profit after Tax from continuing operation | 98 | 147 |
OUTLOOK
EKC remains optimistic about its growth trajectory, supported by strong fundamentals across both domestic and international markets. The Company continues to strengthen its position in the high-pressure cylinder industry through capacity expansion, technological advancement, and an expanding global footprint. With rising demand across mobility, industrial gases, and emerging clean energy segments, EKC is well positioned to capitalise on evolving opportunities.
The outlook for the CNG segment in India remains positive, driven by continued expansion of gas infrastructure, supportive policy framework, and increasing adoption of cleaner fuels. In parallel, the growing focus on compressed biogas and broader gas-based applications is expected to further diversify demand. As India advances towards increasing the share of natural gas in its energy mix, the need for reliable storage and transportation solutions is expected to strengthen, supporting sustained demand for cylinders.
The Company is also aligned with emerging opportunities in the clean energy space, particularly hydrogen. With increasing global investments and policy momentum, hydrogen is expected to play a key role in the energy transition. EKC, with its presence across India, Dubai, and the United States, continues to supply hydrogen cylinders and is well positioned to support the development of this ecosystem.
To support future growth, EKC is expanding its manufacturing capabilities across geographies. The Company has operationalised two production line at its greenfield Mundra facility, with additional lines expected to be commissioned over the coming months, along with incremental capex to enhance operational readiness. In the United States, the approved capex investment will strengthen capabilities in larger diameter and Type 4 cylinders, enabling the Company to address emerging applications. The Egypt facility has also been recently commissioned and will cater to domestic demand as well as regional markets, further strengthening EKCs global manufacturing presence.
With a strong operational base, ongoing capacity expansion, and a clear strategic focus on clean energy opportunities, EKC is well positioned to benefit from the evolving energy landscape. Continued emphasis on innovation, quality, and global market expansion is expected to support sustainable growth and long-term value creation.
INTERNAL CONTROL SYSTEM
The Company has established a comprehensive internal audit framework commensurate with the scale and nature of its operations. At the start of each financial year, the Audit Committee, in consultation with the Internal Auditor, defines the audit scope and key focus areas for review. The Internal Auditor presents detailed reports on a quarterly basis to the Audit Committee. In addition, EKC has implemented robust internal control mechanisms to enhance operational efficiency, ensure optimal utilisation of resources, enable accurate and timely financial reporting, and maintain compliance with applicable laws and regulations.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
EKC recognises its workforce as a key driver of its growth and long-term success and continues to place strong emphasis on human capital development. Through focused initiatives on employee engagement, productivity, training, and skill enhancement, the Company aligns individual performance with organisational objectives. Its talent management framework is designed to identify and develop future leaders, ensuring a capable and future ready workforce. This structured approach enables EKC to build a strong talent pipeline while supporting employee growth and career progression. As of March 31, 2026, the Company employs a dedicated workforce of 840 individuals, who play a critical role in driving operational excellence and supporting the Companys ongoing growth.
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