Everest Kanto Cylinder Ltd Management Discussions

> FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements identified by words like ‘plans, ‘expects, ‘will, ‘anticipates, believes, ‘intends, ‘Projects, ‘estimates or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to the Companys strategy for growth, product development, market position, expenditures, and financial results, are forwardlooking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Companys actual results, performance or achievements could thus differ materially from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.

> ECONOMIC OVERVIEW

* Global Economy

The global economy is navigating a complex landscape marked by heightened trade tensions and policy uncertainties. Global growth is projected at 2.8% for 2025, a downward revision from earlier estimates, primarily due to the resurgence of protectionist trade policies and escalating tariffs between major economies. These developments have disrupted global supply chains and dampened investor confidence, leading to a more cautious economic environment.

Advanced economies are experiencing a slowdown, reflecting the impact of increased tariffs and policy unpredictability. Emerging markets, while still contributing to global growth, face challenges from tighter financial conditions and reduced external demand. Slower industrial output, weakening global trade volumes, and lingering inflationary pressures in some regions are also weighing on sentiment. Coordinated policy actions, structural reforms, and targeted fiscal support will be critical to restore growth momentum and ensure a more stable global outlook.

* Indian Economy

Indias economy is projected to maintain its strong growth trajectory in 2025-26, with GDP expected to expand by 6.5%, reinforcing its position as one of the fastest-growing major economies. This growth is driven by robust domestic demand, continued infrastructure development, and rising manufacturing and services sector activity. The governments continued focus on capital expenditure and digitalisation is attracting both domestic and foreign investments, further bolstering economic momentum. Looking ahead, Indias growth outlook remains promising, supported by moderating inflation and corporate deleveraging, which is paving the way for a renewed capex cycle. While trade may face some pressure due to global uncertainties, the services sector is expected to remain a key pillar of stability. With strategic efforts to enhance private sector participation, deepen capital markets, and maintain macroeconomic stability, India is well-positioned to navigate external headwinds and steadily progress towards becoming a $7 trillion economy by 2031 - emerging as the worlds third-largest economy.

Source: CRISIL Report

> INDUSTRY SCENARIO

Indias natural gas sector is witnessing a structural transformation, underpinned by policy ambition, infrastructure expansion, and the growing role of clean energy in the countrys development agenda. The government has set a target to increase the share of natural gas in the primary energy mix from around 6% in 2022 to 15% by 2030. This shift is being supported by investments in pipeline connectivity, regasification capacity, and city gas distribution networks·creating an enabling ecosystem for a broader range of gas applications across industries and households.

CNG has emerged as a prominent growth lever within the broader natural gas segment, particularly in urban transportation. With over 7,400 stations operational as of 2024·up nearly fourfold since 2019·and expansion plans covering 98% of the population through 307 licensed geographical areas, the CNG network is scaling rapidly. Ambitious targets to reach 18,300 stations by 2032 reflect the long-term vision for gas-based mobility. Simultaneously, the integration of emerging fuels like compressed biogas (CNG) and growing interest in CNG for long-haul and industrial applications are further expanding the natural gas footprint.

Beyond transportation, natural gas continues to gain traction as a cleaner fuel alternative across various industrial segments·including manufacturing, chemicals, and food processing·driven by emission norms and fuel-switching imperatives. These sectors rely heavily on reliable, high- pressure storage and distribution solutions, strengthening the relevance of cylinders as a critical enabler in the value chain. Indias "one nation, one gas grid" initiative, which aims to extend the pipeline network to 35,200 km by 2030, along with rising CNG import capacity, is expected to unlock demand from previously underserved regions.

Despite external challenges such as global price fluctuations and supply-side disruptions, the gas sector remains resilient and forward-looking. Companies are adopting new technologies, optimising logistics, and developing solutions to support the growing diversity of gas usage. As demand accelerates across CNG, industrial gases, and alternate fuel blends, the need for robust and high-quality cylinders for safe and efficient storage and transportation is becoming more pronounced.

Cylinders continue to be indispensable across a wide range of applications·from mobility and industry to healthcare and energy. As Indias energy transition gathers pace, the role of cylinders is evolving beyond storage, becoming integral to the nations clean energy infrastructure. With supportive policy, expanding use cases, and infrastructure momentum, the outlook for the cylinder industry remains strongly positive.

> 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: target to achieve 100% city gas coverage by 2030;

• 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 17,500 stations by 2030;

• 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

The Indian government has announced a substantial investment of USD 67 billion over the next six years to expand and modernise the natural gas sector. The objective is to raise natural gas consumption to 500 MMScMd by 2030 while promoting price stability and ensuring broader accessibility. To enable this transition, a range of policy and regulatory interventions have been introduced, focusing on infrastructure, access, and long-term energy security.

One of the major growth drivers is the rapid expansion of City Gas Distribution (CGD) networks, complemented by initiatives like the National PNG Drive. These efforts aim to accelerate the use of natural gas in both residential and industrial applications. The number of CNG stations has increased fourfold since 2019, reaching approximately 7,400 by 2024, with a target of over 18,300 stations by 2032. With licenses awarded across 307 Geographical Areas, the CGD network now reaches nearly 98% of the countrys population·demonstrating the scale of gas infrastructure rollout.

In parallel, collaborations with state governments and initiatives by the Petroleum and Natural Gas Regulatory

Board (PNGRB) · including the formation of expert committees·underscore the focus on enhancing safety, consumer protection, and operational efficiency. These reforms are aligned with the broader goal of increasing the share of natural gas in Indias energy mix to 15% by 2030.

While infrastructure and policy momentum remain strong, structural challenges persist. India continues to rely on imports to meet nearly half of its natural gas demand, highlighting the importance of ramping up domestic production. Strategic investments in deepwater exploration, coal bed methane (CBM), and LNG regasification infrastructure will be key to supporting the sectors longterm viability. As the availability and use of natural gas scale up, the demand for robust, high-pressure cylinders· particularly for CNG and industrial gas applications·is expected to rise in tandem, reinforcing the role of cylinder manufacturers in Indias clean energy and industrial growth journey.

• CNG

Compressed Natural Gas (CNG) vehicles continue to gain momentum in India, driven by their environmental benefits and cost-effectiveness over conventional petrol and diesel vehicles. As one of the worlds largest CNG markets, India is accelerating its shift toward cleaner fuel alternatives·supported by government incentives, expanding infrastructure, and a growing range of CNG-compatible models from leading automakers. Adoption of CNG vehicles aligns with national efforts to curb carbon emissions and combat urban air pollution. As of mid-2024, India had approximately 7.7 million CNG-powered vehicles on the road, including passenger cars, buses, and three- wheelers, with demand projected to remain strong through 2030.

The rapid expansion of fuelling infrastructure is central to this growth. As of mid-2024, India had over 7,000 operational CNG stations·a nearly fourfold increase since 2019. This momentum is being fuelled by City Gas Distribution (CGD) networks, backed by both public and private sector investments. Under ongoing CGD

bidding rounds, companies have committed to developing over 18,300 new CNG stations by 2032, while the government is targeting 17,500 stations by 2030. To meet these targets, deployment rates will need to accelerate by nearly 60% annually through 2030, compared to growth seen between 2020 and 2024.

Currently, the distribution remains concentrated· Gujarat, Maharashtra, Uttar Pradesh, Delhi, and Haryana together account for 56% of all stations· highlighting the need to bridge regional gaps to unlock pan-India adoption.

Gas cylinders play an indispensable role in enabling CNG vehicle operations by safely storing and transporting compressed gas under high pressure. These cylinders must adhere to stringent safety and performance standards, ensuring reliability across a variety of vehicle platforms. In parallel, the demand for CNG cascades·large storage systems comprising interconnected cylinders - has risen significantly with the rollout of new fuelling stations. Cascades ensure consistent gas supply and uninterrupted service at CNG outlets. With the expansion of CGD infrastructure and rising vehicle volumes, the demand for durable, high- performance cylinders and cascades is expected to increase steadily.

Looking ahead, Indias CNG ecosystem is poised for sustained growth, supported by long-term infrastructure investments, favourable policy, and tightening emission norms. An important development is the mandatory blending of Compressed Biogas (CBG) with CNG, beginning with a 1% requirement in FY2025-26 and scaling up to 5% by FY2028-29. This initiative is expected to reduce reliance on imported LNG while enhancing fuel sustainability. While regulatory frameworks are in place, on-ground implementation of CBG blending remains at an early stage and will require continued efforts to scale. As vehicle volumes rise, fuelling networks deepen, and cleaner alternatives gain policy traction, CNG will continue to be a key pillar in Indias sustainable mobility transition· further reinforcing the vital role of high-quality gas cylinders in enabling this shift.

Trend in CNG fuelling stations across the country

* Compressed Biogas

Compressed Biogas (CBG) is emerging as a vital component of Indias clean energy transition, supporting the countrys commitment to achieving Net Zero emissions by 2070. Government-led initiatives such as the Sustainable Alternative Towards Affordable Transportation (SATAT) programme and the CBG-CGD Synchronisation Scheme are playing a key role in scaling up CBG production and integrating it with the existing gas distribution infrastructure. The phased Compressed Biogas Blending Obligation (CBO) mandates blending CBG with Compressed Natural Gas (CNG) and Piped Natural Gas (PNG), with targets rising to 5% by FY2028-29. These policy measures are expected to attract investments of approximately 37,500 crore (~USD 4.46 billion) and facilitate the establishment of over 750 CBG projects by FY2028- 29. As natural gas demand continues to grow, CBG is set to become a crucial domestic alternative, reducing reliance on imports and advancing Indias broader decarbonisation goals.

Gas cylinders play an essential role in the CBG value chain by ensuring the safe, high-pressure storage and transport of biogas from production centres to end users. As CBG production scales·particularly in rural and semi-urban regions·demand for durable, high- performance cylinders is expected to rise. Cylinder- based distribution models, similar to those used in LPG, are anticipated to support clean cooking initiatives and decentralised energy access. As infrastructure develops and CBG adoption grows, the role of gas cylinders will become increasingly critical to the success of Indias biogas ecosystem.

The phased implementation plan is as follows: Compressed Biogas Blending Obligation

• Green Hydrogen

Green Hydrogen is rapidly emerging as a key pillar in Indias evolving energy landscape. As the country steps up efforts to reduce its carbon footprint, Green Hydrogen offers a clean, scalable alternative to conventional fossil fuels. Its adoption supports Indias broader sustainability objectives and aligns with global decarbonisation commitments. The government has launched ambitious initiatives to drive Green Hydrogen deployment across transportation, industry, and energy storage sectors. This transition is being propelled by the dual imperative of lowering emissions and reducing dependence on imported energy, thereby strengthening long-term energy security.

Gas cylinders play an essential role in the Green Hydrogen ecosystem by enabling safe storage and transportation of the highly flammable gas. Given hydrogens unique properties, storage solutions must meet rigorous safety standards, delivering high strength, leak prevention, and long-term reliability. Advances in cylinder technology, particularly in lightweight composite materials, are further enhancing the safety, efficiency, and commercial viability of hydrogen transport and storage. As the hydrogen economy evolves, the need for robust, high-performance storage solutions will grow in parallel with infrastructure development and end-use adoption.

• Industrial Gases

Indias industrial sector continues to witness steady expansion, supported by strong manufacturing activity, infrastructure development, and favourable macroeconomic fundamentals. In tandem with this growth, the demand for industrial gases is rising significantly across core sectors. Gases such as oxygen, hydrogen, nitrogen, and carbon dioxide are seeing increased application in industries including steel, chemicals, energy transition technologies, healthcare, and precision manufacturing.

Gas cylinders remain integral to this ecosystem, enabling the safe storage, handling, and transportation

of these essential gases while maintaining high reliability and safety standards across diverse industrial use cases. As demand evolves·with a growing emphasis on cleaner production methods, decarbonisation, and advanced manufacturing·the need for durable, high-performance cylinder solutions will continue to grow. Going forward, gas cylinders will play a pivotal role in supporting industrial productivity, accelerating the clean energy shift, and advancing Indias broader sustainable growth agenda.

• Supply to Medical Establishments:

Medical gas supply systems form an essential part of modern healthcare infrastructure, facilitating the safe and efficient delivery of specialised gases across hospitals and clinical facilities. These systems distribute vital gases·including oxygen, medical air, nitrous oxide, nitrogen, carbon dioxide, medical vacuum, and anaesthetic gases·across a range of care settings such as operating theatres, intensive care units, emergency departments, general wards, and recovery areas.

With the expansion of healthcare infrastructure and an increasing emphasis on critical care capabilities, demand for medical gases, cylinders, and related equipment is expected to rise steadily. Gas cylinders are central to this ecosystem, ensuring the reliable storage and transport of medical gases while maintaining stringent safety and quality standards. Oxygen cylinders, in particular, are indispensable for emergency interventions and life-support systems, enabling uninterrupted delivery of life-saving care. By providing a dependable source of critical gases at the point of care, medical gas cylinders support the seamless functioning of healthcare facilities and enhance their ability to respond to evolving patient needs.

• Defence

Indias evolving defence capabilities, shaped by shifting global security dynamics and increasing strategic investments, are driving a significant rise in the demand for industrial gases such as oxygen, nitrogen, and hydrogen. These gases are integral to the manufacturing, maintenance, and operation of advanced defence equipment·including aircraft, naval vessels, combat vehicles, and missile systems· supporting critical applications such as welding, cutting, and heat treatment.

Gas cylinders are indispensable in various specialised defence applications. In submarines, for instance, they store oxygen for life support and compressed gases for buoyancy control, facilitating precise depth adjustments. Cylinders also play a key role in supporting safety systems, including emergency breathing apparatus and fire suppression units. As defence technology advances, particularly with the

deployment of sophisticated drones, unmanned systems, and modern missile platforms, the need for high-performance, reliable gas storage solutions continues to grow. Cylinders remain vital in ensuring operational safety, system efficiency, and mission readiness across Indias defence landscape.

* Fire Safety Equipment and Fire Suppression Systems:

Fire safety and suppression systems are essential for mitigating fire-related risks across diverse settings, including industrial plants, commercial buildings, data centres, and high-risk infrastructure. These systems utilise various extinguishing agents, such as water, foam, dry chemicals, and inert gases like carbon dioxide, tailored to specific hazard profiles and response requirements.

Gas cylinders serve as a critical component in fire suppression systems, storing and delivering gaseous agents with high reliability and precision. Their performance is especially crucial in environments where electrical or sensitive equipment precludes the use of water-based solutions. As fire safety regulations become more stringent and fire risk profiles grow more complex, demand for durable, efficient, and safety- compliant cylinders continues to increase. Cylinders play a central role in ensuring that suppression systems activate effectively during emergencies, minimising damage and safeguarding lives and assets.

> EKCS BUSINESS FRAMEWORK

Established in 1978, Everest Kanto Cylinder Limited (EKC) is a leading clean energy solutions provider and a global manufacturer of seamless steel gas cylinders. With over four decades of experience, the Company has built a strong reputation for delivering high-quality, high-pressure gas storage solutions across a wide range of end-user industries.

• EKC operates two state-of-the-art manufacturing facilities in India-located in Tarapur (Maharashtra) and Kandla SEZ (Gujarat)-as well as international production units in the Jebel Ali Free Zone (Dubai) and Pittsburgh, Pennsylvania (USA). Together, these facilities offer a combined annual production capacity of over 1.5 million cylinders, enabling EKC to serve both domestic and global markets efficiently.

• The Companys product portfolio includes industrial, CNG, and jumbo cylinders designed for the high-pressure storage of gases such as oxygen, hydrogen, nitrogen, argon, helium, and air. These cylinders are used in critical applications across sectors such as manufacturing, fire safety and suppression, healthcare, aerospace and defence, and the automotive industry, serving a wide and diversified customer base.

• EKCs strong market position is supported by its substantial share in the domestic market and a well-established global presence. The Company is well-positioned to benefit from rising demand for gases across industrial and mobility

segments, driven by economic growth and the global transition toward cleaner energy. Leveraging its advanced manufacturing capabilities, technical expertise, and commitment to quality and safety, EKC continues to maintain strong, long-term relationships with leading clients worldwide.

> GLOBAL OPERATIONS

• Dubai

EKC International FZE, a wholly owned subsidiary of Everest Kanto Cylinder Limited, is strategically located in the Jebel Ali Free Zone, Dubai. Since its establishment in 2004, the facility has evolved into a comprehensive manufacturing hub, producing a wide array of high-pressure gas storage solutions. These include industrial gas cylinders, CNG cylinders, jumbo tubes, cascades, multiple element gas containers (MEGCs), and advanced composite cylinders.

The Dubai plant serves as a pivotal export center, catering to markets across Europe, Latin America, the USA, the CIS, and Africa. Its product portfolio supports diverse sectors such as automotive, healthcare, fire safety, and emerging hydrogen energy applications. The facilitys capabilities are bolstered by rigorous R&D and quality assurance protocols, ensuring adherence to international standards and certifications.

• USA

In the United States, EKC operates through its subsidiary, CP Industries Holdings, Inc., based in McKeesport, Pennsylvania. CP Industries is renowned for its expertise in manufacturing large seamless steel pressure vessels. The companys offerings encompass ground storage systems, mobile gas transport solutions, onboard vehicle cylinders, and custom-engineered vessels tailored for industrial gases, alternative fuels, and defense applications.

CP Industries products are integral to various sectors, including industrial gas producers, the natural gas alternative fuel industry, chemical and petrochemical processing facilities, and defence contractors. The facilitys strategic location and advanced manufacturing capabilities enable it to meet the stringent requirements of both domestic and international clients.

> STRENGTHS

• Established Market Leadership in India

Since pioneering the high-pressure seamless cylinder industry in India in 1978, EKC has capitalised on its first-mover advantage to establish a dominant position in the domestic market. Long-standing customer relationships, a broad distribution network, and an efficient supply chain continue to reinforce its leadership as Indias largest manufacturer of gas cylinders.

* Robust Manufacturing Infrastructure

EKC operates cutting-edge manufacturing facilities across India, the UAE, and the United States. The Companys plants adhere to stringent international and domestic standards, including ISO, EN, and IS certifications, ensuring consistent product quality and compliance. This geographically diverse production footprint enables EKC to cater effectively to a wide spectrum of global customer requirements.

* Global Recognition and Reach

EKCs international presence extends to over 25 countries, spanning key markets in Southeast Asia, the Middle East, the USA, Europe, South America, and the CIS region. The Companys adherence to global quality benchmarks, supported by reliable logistics, has positioned its products competitively in international markets and fostered a reputation for excellence.

* Experienced Management Team

The Company is led by a seasoned management team with deep domain expertise and long-standing association with EKC. Their strategic vision and operational acumen have been instrumental in driving EKCs sustained growth and market-leading position across multiple geographies.

* Focus on Technological Innovation

EKC continues to invest in technological advancement to enhance safety, performance, and efficiency. In India, it is expanding into the development of Type 3 cylinders, which incorporate a composite wrap over a metal liner to reduce weight while enhancing safety. In the US, its subsidiary CP Industries has established expertise in Type 4 composite cylinders, made entirely from advanced materials. While currently cost-prohibitive for the Indian market, EKC is well-positioned to introduce this technology domestically as economic viability improves.

* Diverse Product Portfolio

The Company offers a comprehensive range of products, from compact industrial cylinders to large jumbo cylinders and next-generation composite cylinders, spanning capacities from 1 litre to 3,000 litres. This diverse product mix allows EKC to serve varied applications across sectors such as industrial manufacturing, automotive, medical, defence, and fire safety.

* Established Long-Term Relationships

EKCs longstanding client relationships are a testament to its consistent product quality and safety track record. Given the rigorous approval processes and critical use of gas cylinders in high-pressure applications, reliability is a non-negotiable requirement. EKCs commitment to quality has enabled it to retain the trust of clients in high-stakes sectors over decades.

* Strong Financial Foundation

EKCs near net-debt-free balance sheet underpins its financial stability and operational resilience. This strong financial position allows the Company to invest confidently in capacity expansion, R&D, and strategic initiatives, while maintaining agility in a dynamic business environment. It also provides a solid foundation for capturing emerging growth opportunities and enhancing shareholder value.

> CHALLENGES, RISKS AND CONCERNS

* CNG Demand Sensitivity

The adoption of CNG vehicles remains vulnerable to fluctuations in natural gas prices. Significant increases in gas prices could erode CNGs cost advantage over conventional fuels such as petrol and diesel, potentially affecting consumer uptake and slowing market expansion. While CNG remains an environmentally favourable option, price volatility may temporarily dampen demand. That said, the Indian government continues to promote CNG adoption through fiscal incentives and favourable policy measures to ensure sustained growth in the segment and support related industries such as gas cylinder manufacturing.

* Raw Material Price Volatility

The Companys operations are exposed to the risk of rising input costs, particularly seamless steel tubes, which constitute a major raw material. Fluctuations in steel prices driven by global supply-demand dynamics and trade conditions can impact profitability. EKC actively manages this risk through long-term supplier relationships, diversification of sourcing, and vigilant monitoring of domestic and international pricing trends to ensure continuity and cost efficiency.

* Competitive Intensity

Despite its strong market position, EKC faces increasing competition from domestic players and imports. This intensifying landscape may exert pressure on pricing and margins. EKC continues to leverage its strengths· established customer relationships, high-quality standards, and innovation capabilities·to differentiate its offerings and reinforce its leadership in both domestic and global markets.

* Technological Shifts and Innovation Pressure

Technological advancements in cylinder manufacturing present both opportunities and challenges. The high capital intensity required to adopt and scale new technologies, such as advanced composites, can strain resources and delay commercial viability, especially in cost-sensitive markets. EKC addresses this by investing in R&D, adopting a phased innovation strategy, and staying ahead of industry trends to ensure continued product relevance and competitiveness.

* Foreign Exchange Exposure

Given its reliance on imported raw materials priced in foreign currencies, EKC is exposed to currency exchange rate fluctuations. Adverse movements can impact procurement costs and profitability. The Companys treasury function proactively monitors currency trends and evaluates hedging mechanisms to manage exposure, in line with its overall financial risk management framework.

* Risk of Transition to Electric Vehicles

The increasing penetration of electric vehicles (EVs) presents a long-term structural shift that may impact demand for gas-powered vehicles and associated cylinder applications. However, several systemic challenges continue to temper widespread EV adoption. These include high upfront costs, limited charging infrastructure, and range anxiety. Additionally, battery degradation over time adversely affects vehicle performance and significantly lowers resale value. The environmental impact of mining rare earth metals for battery production-such as lithium, cobalt, and nickel-raises further concerns, especially around sustainability and ethical sourcing. In contrast, the Indian governments multi-fuel strategy promotes a balanced and inclusive approach, supporting both electric and gas-based mobility solutions. Natural gas remains a viable, low-emission option, while the growing emphasis on compressed biogas (CBG), backed by blending mandates, adds another sustainable dimension to clean transportation. Together, these efforts help safeguard the relevance of CNG and biogas fuels, reinforcing sustained demand for gas storage cylinders and supporting Indias longterm energy transition.

* Litigation and Compliance Risks

As a global enterprise, EKC is subject to legal and regulatory risks, including litigation arising from commercial, contractual, or employment-related matters. Although such instances may be infrequent or without merit, litigation can lead to financial liabilities, reputational concerns, and diversion of management attention. The Company maintains a robust legal and compliance framework to manage disputes and mitigate potential impacts.

> FINANCIAL AND OPERATIONAL PERFORMANCE

The discussions in this section relate to the consolidated, Rupee-denominated financial results pertaining to the year ended March 31, 2025. 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

FY2025 marked a year of steady progress and operational resilience for EKC. Building on the recovery achieved in FY2024, the Company delivered improved performance across key segments, driven by robust demand in the first half of the year. The CNG segment continued to anchor the business, contributing more than half of the total revenues. Despite persistent pressures in some higher-margin categories, the overall margin profile strengthened on a year-on-year basis. The industrial segment also maintained a consistent performance, further reinforcing the Companys consolidated financial position.

* On a standalone basis, EKC reported revenue of 946 crores in FY2025, reflecting a growth of 23% over the previous year. EBITDA stood higher at 101 crores as compared to last year, translating into a lower margin of 10.7% as compared to last year, while profit after tax (PAT) came in at 53 crores at par with last year.

* On a consolidated basis, revenues stood higher at 1,499 crores, supported by contributions from domestic and international operations. Consolidated EBITDA was 176 crores, with a margin of 11.7%, and PAT 98 crores.

* Segment-wise, the CNG business continued to be the largest contributor, generating revenues of 588 crores, accounting for 64% of the total. The industrial segment followed with 310 crores (34%), while the jumbo cylinder business contributed 18 crores, representing 2% of the overall revenue mix.

The following table gives an overview of the Consolidated Financial Results of the Company

Particulars	FY24	FY25
Income from Continuing Business Operation	1,223	1,499
Earnings before interest, tax, depreciation and amortization (before other income)	160	176
Profit Before Tax (PBT)	120	130
Profit after Tax from continuing operation	98	98

. DIVIDEND

For FY 2024-25, the Board of Directors recommended a dividend of 0.70/- per share. For details on dividend distribution policy, please refer to the Companys website at EKC - Dividend Distribution Policy.

> OUTLOOK

EKC remains confident in its long-term growth prospects across both domestic and international markets. The Company continues to strengthen its leadership in the high- pressure cylinder industry by expanding its global footprint, broadening its product portfolio, and advancing its technological capabilities.

The CNG segment remains central to EKCs business, and the outlook for this market in India is highly encouraging. The Indian governments sustained focus on expanding natural gas infrastructure, supported by fiscal incentives and reforms, is driving broader adoption of CNG vehicles. The planned investments over 2024-2030 is expected to significantly accelerate the development of the CNG distribution network, aligning with the countrys goal of increasing the share of natural gas in its energy mix. Complementary policy measures, such as the Unified Tariff reforms by PNGRB, are further improving affordability and access, particularly in underserved geographies.

Biogas is another emerging opportunity. As India promotes waste-to-energy solutions and expands renewable energy access in rural areas, compressed biogas (CBG) is gaining relevance. EKC, with its expertise in cylinder technology, is well positioned to cater to this growing demand and support the transition to cleaner, decentralised energy alternatives.

Green hydrogen is also a key pillar of the Companys longterm strategy. With rising investments and global momentum

around hydrogen as a clean energy vector, EKC is actively contributing to this space. Its hydrogen cylinders, currently supplied in India, Dubai, and the U.S., are already playing a role in enabling the transition. Indias target to become a major green hydrogen producer by 2030 presents significant opportunities for EKC to expand its presence in this fast- evolving segment.

To support future growth, the Company is executing major capacity expansions. The new manufacturing facility at Mundra will enhance domestic production, including lines for composite cylinders, while the Egypt plant will serve as a regional hub for the Middle East and Africa. These greenfield investments will provide added flexibility and scalability across CNG, hydrogen, and biogas product lines.

With a strong foundation and a clear strategic roadmap, EKC is well positioned to capitalise on the evolving energy landscape. Continued focus on innovation, sustainability, and global expansion will reinforce its industry leadership and drive long-term value creation for all stakeholders.

> INTERNAL CONTROL SYSTEM

The Company has established an Internal Audit System that aligns with its size and business operations. At the beginning of each financial year, the Audit Committee defines the scope of work with the Internal Auditor, identifying key areas for verification. The Internal Auditor submits reports on a quarterly basis to the Audit Committee. EKC has also implemented robust internal controls to ensure operational efficiency, effective resource management, accurate and timely financial reporting, and compliance with applicable laws, rules, and regulations.

> HUMAN RESOURCES AND INDUSTRIAL RELATIONS

At EKC, we understand that our workforce is fundamental to our growth and success, and therefore, we place a strong emphasis on human resources. Through various initiatives focused on employee productivity, training, and development, we align individual goals with the companys objectives. Our talent management framework is designed to identify and nurture employees with leadership potential, ensuring a future-ready workforce. This approach allows us to build a strong talent pool, empowering employees to contribute to the companys long-term growth and sustainability while fulfilling their career aspirations. As of March 31, 2025, EKC employs a dedicated team of 756 individuals who play a vital role in the Companys achievements.