Interest Cost Reduction Deleveraging
Expected: FY27HIGH confidence
What: Debt: INR 164 Cr
Impact: Significant liquidity boost
Everest Industries Ltd: Is It a Deep Value Opportunity?
Very Weak
As of , Everest Industries Ltd (Pre-Engineering Buildings) has a deep value score of 8/100 (rated Very Weak).
Everest Industries Ltd Key Facts
- Market Cap
- ₹603 Cr
- Value Score
- 8/100
- Margin of Safety
- -61%
- PAT Growth YoY
- -153%
- Revenue Growth YoY
- -24%
- OPM
- -7.0%
Danger Bubble
What's Happening
⚠️PE rising despite falling earnings — price running ahead of reality
💰Trading 61% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Interest Cost Reduction Deleveraging
FY27HIGH
2. Management Or Ownership Change
Q4 FY26MEDIUM
Key Risks
1. Implementation of new Labour Codes led to a massive ₹13
HIGH2. Iran-Israel conflict and Strait of Hormuz closure impacting UAE operations and i
MEDIUMSector-Specific Signals
Steel Buildings Revenue Growth (YoY)-45.58%-45.58%
Building Products Revenue Growth (YoY)-12.41%-12.41%
Total DebtINR 164 Cr119 Cr increase
Asset Monetization Proceeds (Podanur)INR 100.83 CrNew Inflow
Key Numbers
PAT Growth YoY
-153%
Inflection Down
Revenue YoY
-24%
Inflection Down
Operating Margin
-7.0%
-500 bps YoY
Current Price
₹380
Dividend Yield
0.66%
3Y PAT CAGR
-50%
Valuation
Significantly OvervaluedWhy Are Everest Industries Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Management Or Ownership Change
Expected: Q4 FY26MEDIUM confidence
What: New Appointments: 3 senior roles
Impact: Operational restructuring
What Are the Key Risks for Everest Industries Ltd?
Earnings deceleration risks from management commentary
Implementation of new Labour Codes led to a massive ₹13
HIGHTrigger: Implementation of new Labour Codes led to a massive ₹13.64 Cr exceptional gratuity provision.
Impact: PAT impact: INR 13.64 Cr
Management view: Recognized as exceptional item in Q3 results.
Monitor: regulatory
Iran-Israel conflict and Strait of Hormuz closure impacting UAE operations and i
MEDIUMTrigger: Iran-Israel conflict and Strait of Hormuz closure impacting UAE operations and imports.
Impact: PAT impact: Not Given
Management view: Not Given
Monitor: geopolitical
What Did Everest Industries Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 282.95 Cr
YoY -23.74%QoQ -7.58%
Revenue contraction was driven by a sharp 45.58% YoY decline in the Steel Buildings segment and a 12.41% drop in Building Products.
EBITDA
INR -32.99 Cr
YoY -494.41%Margin -11.66%
Operating profit plummeted into deep negative territory due to severe revenue deleverage and exceptional gratuity provisions.
PAT
INR -37.98 Cr
YoY -145.35%QoQ -109.03%
Net loss widened significantly, exacerbated by a ₹13.64 crore consolidated exceptional charge related to new Labour Code gratuity provisions.
Other Highlights
• Exceptional charge of ₹13.64 Cr (consolidated) for gratuity provisions under new Labour Codes.
• Profit of ₹3.05 Cr from sale of Mumbai office premises partially offset losses.
• Standalone PBT loss widened to ₹40.60 Cr vs ₹15.31 Cr in Q3FY25.
What Sector Metrics Matter for Everest Industries Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Steel Buildings Revenue Growth (YoY)
-45.58%
YoY -45.58%QoQ Not Given
Why: Marked revenue decline in the segment during the quarter.
Building Products Revenue Growth (YoY)
-12.41%
YoY -12.41%QoQ Not Given
Why: Consolidated segment revenue for Building Products declined by 12.41% in Q3.
Total Debt
INR 164 Cr
YoY 119 Cr increaseQoQ Not Given
Why: Debt surged from ₹45 crore the previous year to ₹164 crore as of March 2025.
Asset Monetization Proceeds (Podanur)
INR 100.83 Cr
YoY New InflowQoQ Not Given
Why: Completion of first phase of land sale in Podanur, Tamil Nadu.
Operating Margin
-11.66%
YoY Not GivenQoQ Not Given
Why: Severe revenue contraction and exceptional gratuity charges compressed margins.
What Is Everest Industries Ltd's Management Guidance?
Forward-looking targets from management
Management Tone: CAUTIOUS
Guidance Changes
LOWERED
Capex Timeline: FY26 → FY27
Re-evaluation and discussion with APIIDC
How Fast Is Everest Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -24% | +8% | Inflection Down |
| PAT (Net Profit) | -153% | -50% | Inflection Down |
| OPM | -7.0% | -500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: Everest Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Everest Industries Ltd's deep value score?
Everest Industries Ltd has a deep value score of 8/100 (rated Very Weak). This score is calculated from three components
- Earnings Score: 0/40 — measures PAT growth momentum across quarters
- Underperformance Score: 0/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 0/25 — operational quality (margins, revenue growth, valuation)
Is Everest Industries Ltd fundamentally improving?
Everest Industries Ltd's quarterly profit (PAT) growth trajectory
- Insufficient PAT data to assess improvement trend
Why is Everest Industries Ltd underperforming despite good earnings?
Everest Industries Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Everest Industries Ltd?
Everest Industries Ltd's earnings momentum is Monitoring.
- PAT YoY Growth: -153%
Is Everest Industries Ltd undervalued?
Everest Industries Ltd's valuation metrics
- Margin of Safety: -60% (appears overvalued)
What are the revenue and margin trends for Everest Industries Ltd?
Everest Industries Ltd's revenue and margin trends
- Revenue YoY: -24%
What is Everest Industries Ltd's trailing twelve month (TTM) performance?
Everest Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-46 Cr
- TTM PAT Growth: -80.0% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: -9.3% YoY
- TTM Operating Margin: -0.3%
What sector does Everest Industries Ltd belong to?
Everest Industries Ltd key facts
- Sector: Pre-Engineering Buildings
Is Everest Industries Ltd a good deep value opportunity to study?
Everest Industries Ltd shows limited deep value signals currently — score is 8/100 (Very Weak). Monitor for improvement.
- Value Score: 8/100 (Very Weak)
What is the bull and bear case for Everest Industries Ltd?
Risk Factors (Bear Case)
- Margin pressure warning
- Appears overvalued despite underperformance
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Everest Industries Ltd?
Everest Industries Ltd has 2 key growth catalysts identified from recent earnings analysis
- Interest Cost Reduction Deleveraging
- Management Or Ownership Change
What are the key risks in Everest Industries Ltd?
Everest Industries Ltd has 2 key risks worth monitoring
- Implementation of new Labour Codes led to a massive ₹13
- Iran-Israel conflict and Strait of Hormuz closure impacting UAE operations and i
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.