EVERESTIND - Everest Inds.

📊 NSE: EVERESTIND 🏢 Cement Products 📅 Last Updated: 12/13/2025 22:00

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 was INR 306.16 Cr, a decline of 18.7% YoY from INR 376.82 Cr. Building Products (BP) segment revenue was INR 230.76 Cr, down 37.8% QoQ. Steel Buildings (PEB) segment revenue was INR 75.40 Cr, down 42% QoQ.

Geographic Revenue Split

Not disclosed in available documents, though the company is expanding its footprint in Eastern India through a new plant in Assam.

Profitability Margins

The company reported a consolidated loss before tax of INR 24.75 Cr in Q2 FY26. Operating margins have faced sustained pressure, with EBITDA margins falling to 0.9% in H1 FY26 compared to earlier expectations of 5-6%. Return on Net Worth was -0.60% in FY24.

EBITDA Margin

EBITDA margin was 0.9% in H1 FY26, significantly lower than the 5-6% target. This was driven by lower processing efficiency in the roofing business and execution of low-margin PEB contracts.

Capital Expenditure

The company announced a total capex of INR 187 Cr for a new Boards and Panels (B&P) plant in Assam, with INR 169 Cr already incurred by the end of FY25. Additionally, INR 138 Cr was specifically allocated for Eastern market expansion.

Credit Rating & Borrowing

Ratings were downgraded to [Crisil] A-/Negative and [ICRA] A (Negative). Debt of INR 95 Cr was availed in FY25 to fund capex. Interest coverage moderated to 2.1x in FY25 from 5.7x in FY24.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Asbestos (for roofing) and Steel (for PEB). Asbestos dependence on Russian suppliers has been a historical risk, now being mitigated through diversification.

Import Sources

Asbestos was primarily sourced from Russia; the company is now adding new suppliers from other regions to de-risk the supply chain.

Key Suppliers

Not specifically named, but the company has transitioned from a heavy reliance on Russian asbestos suppliers to a more diversified vendor base.

Capacity Expansion

B&P capacity was increased by 91,000 MT in FY24. A new plant in Assam is being set up to capture Eastern Indian markets.

Raw Material Costs

Raw material costs for H1 FY26 were INR 441.49 Cr, representing approximately 54.7% of total revenue. Costs have been impacted by rising input prices and inflationary pressures.

Manufacturing Efficiency

ROCE was 1.63% in FY25, down from 12.19% in FY22, indicating a significant drop in capital efficiency due to lower fixed cost absorption in the B&P segment.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be driven by the ramp-up of the B&P segment (higher margin urban clientele), the new INR 187 Cr Assam plant for Eastern markets, and a focus on higher-margin PEB orders. The company is also expected to receive INR 134 Cr from a land sale in FY26 to bolster liquidity.

Products & Services

Asbestos Cement (AC) Roofing, Fiber Cement Boards, Panels, and Pre-Engineered Steel Buildings (PEB).

Brand Portfolio

Everest

New Products/Services

Expansion of the Boards and Panels (B&P) portfolio to target urban markets, expected to contribute to a 300-400 bps margin improvement over the medium term.

Market Expansion

Targeting Eastern India through the new Assam plant and increasing the revenue share of the PEB segment, which has grown from 20% to 30% over the last 5 years.

Market Share & Ranking

The company has reported an increased market share over the past two years, though specific ranking is not provided.

🌍 External Factors

Industry Trends

The industry is shifting toward non-asbestos building products (B&P) and pre-engineered steel structures for industrial use. Everest is positioning itself by increasing its PEB revenue share to 30%.

Competitive Landscape

Faces intense competition from regional players in the roofing segment and substitute products like galvanized steel sheets.

Competitive Moat

Moat is built on a strong distribution network and brand recognition in the roofing segment, coupled with early diversification into the high-growth PEB sector.

Macro Economic Sensitivity

High sensitivity to rural spending and GDP growth, as AC roofing demand is derived from rural household construction.

Consumer Behavior

Shift in urban demand toward fiber cement boards and panels for modern construction.

Geopolitical Risks

Exposure to the Russia-Ukraine conflict due to historical dependence on Russian asbestos suppliers, now being mitigated through supply chain de-risking.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution norms and safety standards for asbestos handling. The company is diversifying into non-asbestos products to mitigate regulatory risks.

Taxation Policy Impact

The company received a tax credit of INR 5.25 Cr in Q2 FY26. GST incentives of INR 9.50 Cr were recognized, with INR 7.79 Cr as an exceptional item for prior periods.

⚠️ Risk Analysis

Key Uncertainties

Recovery of operating margins from the current 0.9% to the targeted 5-6% remains the primary uncertainty. Processing inefficiencies in roofing could impact profitability by 4-5%.