The guidance revision follows the start of commercial production at the company’s Andhra Pradesh Unit 2, Phase 1 plant. The facility is built to produce high-rise buildings, data centers and heavier structures for industrial and process plants, a category Interarch has served for years but had not previously had a dedicated plant for.
Nanda said demand for steel in these categories is rising quickly. The company already has data center projects underway in Mumbai and Delhi, a 16-storey hotel building in Noida, and an order for the Central Secretariat building complex on Rajpath in Delhi, where the government is constructing new office buildings.
He said the shift toward larger, more technically demanding projects should support margins. “These kinds of orders are bigger orders. The buildings are far more complex to design, engineer, and produce and erect. So invariably you earn a higher margin,” Nanda said. He added that clients in this segment, including Micron, Tata Electronics, Exide Battery and Agratas, are looking for a design-to-execution partner rather than a steel supplier alone.
On order flow, Interarch reported an outstanding order book of ₹1,850 crore as of August 1, an addition of about ₹650 crore during the quarter. Nanda said most pre-engineered building orders are delivered within four to nine months, with some running up to 12 months, which limits how far ahead the company can book work. “I think today we are booked up for nearly the next nine to 10 months,” he said.
Nanda said order intake is not a constraint for the company at present. “Getting an order is not a problem,” he said, pointing to the company’s client relationships and project track record.
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Asked about competition, Nanda said the pre-engineered building industry has become segmented by project size and client type over the past one to two years, with different players serving large, mid-sized and smaller clients separately. He said this segmentation, combined with a shift away from fabricated buildings toward pre-engineered structures, means added capacity across the industry has not translated into overcapacity in his segment.