Interarch Building Solutions Limited (NSE: INTERARCH) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Arvind Nanda — Managing Director
Manish Kumar Garg — Chief Executive Officer
Pushpendra Kumar Bansal — Chief Financial Officer
Analysts:
Sudeep Bora — Analyst
Rajat Baldewa — Analyst
Shubhankar Gupta — Analyst
Vishal Mehta — Analyst
Raghav Maheshwari — Analyst
Rahul Kumar — Analyst
Nishant Sharma — Analyst
Deepashree Joshi — Analyst
Vivek Gautam — Analyst
Devang Patel — Analyst
Nikhil Purohit — Analyst
Raman KV — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Interage Building Solutions Limited Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Sudeep Pora from Ambed Capital. Thank you and over to you sir.
Sudeep Bora — Analyst
Good evening everyone. On behalf of Anbit Capital I thank the management of Interact Building Solutions Limited for the opportunity to host their Q3 and 9 month FY26 earnings conference call to discuss the result. I am pleased to welcome Mr. Arvind Nanda, Managing Director Mr. Manish Garg, Chief Executive Director Mr. Pushpendra Kumar Bansal, Chief Financial Officer and Mr. Anil Kumar Chandani, President Corporate Finance and Strategy. Now I invite Mr. Arvind Manda to take us through the key highlights of the quarter post which will open up for Q and A. Thank you. And over to you sir.
Arvind Nanda — Managing Director
Thank you very much. Welcome everyone. Thank you for sparing your time to have a call with us. I think we should. We are quite pleased with our results of the Q3. I think our performance has been more than what we expected. So going forward I think we should be able to achieve and cross the target that we had given. So just a couple of things I wanted to say before we get to questions and answers. One is of course I think in the last one one and a half years building industry as a category has become more familiar with everybody.
We were very concerned when we went for IPO because it was not a very well understood category. But thanks to the time that all of you have given and the various meetings that we had, I think it has been understood as a separate category away from construction or fabrication or civil works or contracting etc. But more like a capital goods where everything from engineering to execution of the building is done by the PEP company itself. So that has been a great change and I think the recognition that more and more people want even their factory building, commercial buildings, institutional building more as a product where the full responsibility and the full the execution capabilities and a one stop shop has been well understood by the market that there is a great benefit.
Just like when ready made furniture came in already made apartments came into play. It took people time to understand what are the advantages. But I think today people have understood the advantages. The market is growing more and More people have shifted towards not only steel buildings of course, like I have earlier said, is a very old concept. More and more toward pre engineered where they can just entrust their whole building as a product to one company fully responsible for design, engineering, fixed lump sum cost, fixed schedule, dates, etc. And they get the building as a product.
So that has been a big change. And of course the other big changes that the pre engineered building companies themselves have upgraded themselves a lot. Because the market is very large, market is huge. Nearly every building uses steel. Whether it’s a steel plant or a power station or a port building. But the capabilities of the pre engineered building industry depends on the pre Internet building industry. How capable are we of participating in those markets, participating with those buyers and convince them that we are the right way to go. Depends on the pre needed building companies.
Our own, our own capacities, our own engineering capabilities, our project management capabilities, our production and the most important, how to do it in a very well coordinated, in a synchronized manner. Because no building can be made if you supply material in any fashion. The biggest challenge for a pre needed building company is not only to do all these four things very well, but do it in a very very coordinated manner. But each building is unique for us. Each building is treated as a unique building, Designed as a unique building and produced as a unique building.
Every part of that building is unique to us. And therefore it has to go in a certain sequence, it has to be manufactured in a certain sequence. There are no ready made sections or pre made section which we just apply. But the whole building, from design till execution is a unique piece of product. Therefore not only do we like we say four legged animal, do the four legs have to be equally strong, but they have to run in a very coordinated manner. If one of them doesn’t perform, the whole animal will fall down. So the coordination is a very critical element of any pre engineered building companies.
And I think with our experience and background and knowledge and relationships, we have improved that. That today we can do a 300 crore building, 3,000 30,000 ton building, high building of 7080 meter height, very large spans. That is a capability that we build up. Clients will not come to the pre unit building industry till they see the capability. If tomorrow I have capability of commercial buildings, they’ll come to me. If I have capabilities of semiconductor, data center, lithium battery plants. These are all very complicated buildings and then they will come to me. Otherwise they will go for cement, concrete or steel construction.
So we have been trying to build up this capacity as interop. We have been Trying to build up these capabilities and capacities. And I think our speed has picked up since we went public. We got listed based on our old relationships and our internal strengths and the support that we get from our clients and the in house way that we have built our teams. I think our capabilities are growing and we are growing much faster than we anticipated. But yes, it’s a very, very complex business. So one cannot just grow in a mathematical manner. One cannot grow in exponential matter in just in tonnage.
Because each building is a product. Therefore it is very critical that you grow in a proper manner, grow in an organized manner. You can run a little faster, but you can’t do something which will make you fall down or destroy your reputation or destroy your relationships. Because for each client, each building is very critical. It is not just one building for him, it is the only building. Therefore, while we are growing faster and I am sure expectations will be that we should grow faster and faster. But it is not a mathematical exercise, it is how we grow, how well we grow.
What is the quality of our growth? What is the quality of our client, of our execution, our performance, our collection of money, our working capital cycle? All these are very critical. Just building capacity in factories is not going to give you the result. The result is a very slow, ponderous, very concentrated and a very based on a lot of history and experience that you have. So one question that I’m sure you all have, so I’ll answer it is the raising of the QIP or preferential allotment or getting a new shareholder of 100 crores that we have taken approval of.
The reason was that we were going to do everything from our own funds. We have started new two new plants this year. Which is one is the AP plant. Two which is for heavy structures in Andhra Pradesh and the second is a Gujarat plant for pre engineered building. So both these have started and both these will be in play in different phases between June and December. Now while we were looking at the market in the last six, eight months, we found that as you have seen from our results also that the demand is there in the market today.
Whether it’s pre engineered building, more so in heavy structure also we are seeing a lot of requirement coming up. A lot of people have changed their buildings to steel. A lot of demand is coming from contractors, builders, owners of buildings. Therefore we felt that why delay what we were planning to do in 2728 so that it can contribute to 2829 sales. We figured that maybe it is better that we put in the capacity now. Maybe the demand comes in, maybe it doesn’t come in. We are not 100% sure. But the feeling is that if we have the capacity today, demand is there and we should be able to execute it.
Just like we managed to create some additional capacities in the last six, eight months. And we have seen that in our results that the business is available if the capacities and performance criteria is available. The reason of QIB is this, that if we do the same thing next year, probably we will have our own funding from internal resources. But if you want to prepone it by one year and start in March and June and finish Both these expansions, AP2, the second line of heavy structures and Gujarat, the second part of the pre engineered building to make it a complete state like we have in south and like we have in north.
So we will have same thing in Gujarat. It will be six plants, two in each and heavy structures. We felt that each heavy structure line gives us about 20,000 tons. We felt that 20,000 to 24,000 tonnes will not make us a good player. It will give us a safe harbor in the sense that we can try and build up the market. But the way that we have seen the market build up in the last one year, we figured that with 20,000, 24,000 tons a year, we will be a very small player in the market. People will not come to us like they come for pebs and give us.
Because a normal building or a large contract can be 10 to 15,000 tons. So that means we could only do maybe one order for our customer in a year. So we felt that to be a serious player in the market we need to have capacity over 40 to 45,000 tons. And we need to start it today so that we can be a serious player in the market. Of course it will take more time to fill it up. It’s not going to be that from day one it will fill up. But at least we will have the capacity and capability to deal with bigger customers, with bigger buildings, with bigger orders.
So the reason of QIB is basically to prepone the capital investment. Only it is not meant for working capital as such. Both these plants will cost us more than 100 crores. But I think balance can come out of internal resources also. But the idea was to start it and immediately rather than wait for another 12 months when we have our own resources. And I think that will add to the bottom line in a way. It doesn’t dilute any personal shareholding value. Because the money is also going to come in and invest it in the capital and I think the timing is right.
That is our judgment. Now I will leave the rest of the time to your questions and try to answer them to the best of our ability. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, please press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Rajat Baldeva with Kizuna Wealth. Please go ahead.
Rajat Baldewa
Hi sir. Congratulations on a good set of numbers. Sir, my first question is on you have said that there is a huge demand. So my first question on a Chinese import because currently like Chinese Import now account 45 to 50% of Indian steel structures in 2025. And with steel structure forming the core material used in pre engineering building and given that steel is a highly commodified input, how do you see the Chinese importing the Indian pre Indian building market? This is my first question.
Arvind Nanda
I think Chinese buildings have never been a direct competition for us because the work which involves a pre engineered building from engineering design, many meetings, understanding the value proposition, then producing the whole building, then Indian standards for applying Indian or American standards and then executing the building at site in that manner. Chinese have never been a competition because to do all these works they would really have to establish a new company here and then be a proper Indian company as a competitor which Chinese have not come in. So the advantage of producing in China and shipping out here is not there for engineered buildings at present.
As far as I know the structures which people are importing is primarily because I feel either there is some kind of steel structures which are not manufactured by any company or the requirement of heavy structures in India is very large and there are not enough players in India to supply that. And actually if there’s no supplier then people will import whatever the cost may be, whatever the complications may be. So I think these are the two areas where Chinese import could be coming in. And that is why the reason why we want to put up a heavy structure plant because we feel that requirements are very large and people are either going for site fabrication or for imports or just going to small local players and buying little little everywhere because the requirement is there.
But Chinese are not a competitor for peb.
Rajat Baldewa
Okay, great. And for my second question is on the competition intensity in the PEB industry. Like it is a very low capital intensive business. So any large steel conglomerate can easily. Set up their manufacturing plant or a greenfield plant. So how do you see a competition intensity going forward?
Arvind Nanda
See, green unit building is a little bit of a different animal in the sense it’s a very niche market. It is not a steel item, it is a whole product of a building. So right from the beginning of value add, each building being unique, design for that particular thing, then being competitive in that area, then producing that whole building with a specific boq piece by piece, transporting it there, erecting it there is not a commodity. So steel companies are generally not very keen to get into product. They are more into manufacturing steel as a commodity and selling it.
Whether it’s a plate, whether it’s a pipe, whether it is a I section, C section. So steel companies normally go into that. Steel companies like jspl, JSSL have set up heavy structure plants. And primarily the reason why steel company can go into heavy structure plant is because that said more of a commodity there. The design is given by the client. You fabricate after doing your detailing and you just supply X factory and the client is going to be responsible for design, for the project management, freight, everything. So people like JSPL and JSW have gone into that.
EEV industry is not something that most of these large companies can because it’s a very niche product. But yes, you are right. The intensity of pre engineered building competition has grown enormously in the last two, three years from non steel industry, from non contracting companies. Because a lot of contracting companies have earlier gone into this and realized that it’s not as easy as just contracting because it is not the building which is critical. It is like a machine. Like saying that a machinery is all steel. So why can’t a steel manufacturer get into making a machine? It is as different as that.
So a lot of the contracting companies had gone into it earlier, including lnt, still there, Taboo G had tried, IRA Construction had tried, but they all failed because it’s not a building, it is a niche product. Primarily we will get competition from other PEB companies which have understood that this is a niche market and how are we going to do it? There two, three advantages that we have of course is one is a very long history of having done every kind of building, executed thousands of building, dealt with clients satisfactorily and build up a relationship.
That history counts a lot in this. It was just like when you go and order a capital good machinery, you don’t go only by price or the weight or who is going to supply me fastest. But who is the right person who will give me the machine or the building which serves my purpose, is within my budget of course is going to be in my schedule and want to last me for a very long time. These are the criteria he looks at. For these criteria he looks at the history of the company which is giving him the PEB code, not just what is the price.
So competition is there, this is what we try to build on. But yes you are right, competition is there. But I also believe that every competitor also builds up its own market for PV. Like I was mentioning earlier, the supply of the PEBs is as critical as the demand. Demand of steel buildings is enormous. What can we supply as a pre engineered building company is up to us. So very small players, medium players are having their own geographical markets, own simpler building, 10,000, 20,000 square feet, even up to 50,000 square feet. Some are only doing it geographically.
But yes, even the tier one and tier two companies are expanding very fast. Money is available. Three, four of them are listed. Also they have raised funds. Funds are easily available but there will be competition going forward and competition will be, you know, you will face competition in terms of price, you will face competition in terms of getting orders. But I think as interact we concentrate on how do we build up our company so that we build up relationships. Once we build up relationship and build up our internal capacity to do better buildings, more complex buildings, do a lot of marketing and business development go to a lot of people who didn’t even realize that they can do with a pre Internet building or their product.
Their building can be done in pre engineered building or steel. We go to them. We don’t sit at home waiting for our inquiry. That has always been our method. So therefore we the way to remain ahead of in the pre unit building industry not by lowering your price or reducing your margin but is to stay ahead in the game of your engineering capacity. Your complexity of the dealing with the client, your complexity of dealing with the building, producing it and performing that whole task in a very very systematic and organized manner to give the client the product at the end on the schedule date, right quality, right safety and he should be able to function from there for a long time to come.
But no doubt competition is very severe and it will keep getting more and more severe. But the way to go ahead is as I mentioned.
Rajat Baldewa
Okay, great. And for the last question on the order book front, like your order book growth appears relatively muted as Q1. Q growth is around 3 to 4% and YoY growth is around 30%. Given that some Peers have reported standard order book momentum. So can you please know that what’s the reason for the change?
Arvind Nanda
Two reasons. One is that our utilization of the order report arc sales are higher than we expected. See if you look at last year, I think last quarter 25 May 3rd quarter we had done 363 crores. This year we have done 522 crore. So it’s nearly 160 crore of extra sale. So while we might have booked only 60 crore extra orders in this quarter in the last three months. But don’t forget that we have executed 160 crores of extra orders also. And then we have to keep in line that we cannot take orders beyond a period of nine to ten months max.
So we have to execute them also. So we built up capacity, we executed more, took more orders. But now our capacity will be a little muted in increase till August, September till the new Gujarat plan comes into play. So therefore we have to now plan that 1600 crores if we can do or 1700 crores if I can do in the next nine months or 10 months. I’m well on track. And nobody’s going to give me a long term order in PEBs. Long term orders are not there. So I have to execute these orders also. So the muted, it looks muted because I have executed 160 crore more orders than a previous year.
And I’ve still grown my order book by 60 crores. But the back of my mind I have to meet the schedule of the client also. I can’t just take orders blindly. So it is not muted but it is in tune with our capacity and our performance. That is how we take the order. Okay sir.
Rajat Baldewa
And sir, can you give some color on the realization front? Like what’s the realization difference between India vs China vs USA? Specifically how do the pricing levels cost. Structure different between this market
Arvind Nanda
mean for local players there or for exports?
Rajat Baldewa
No, no for export. Like what’s the realization for India? What the relation for the China and the US market?
Arvind Nanda
See we have not done too much exports. We have got two orders from exports from this year. One from Myanmar, one from in the last quarter and one from Ghana. So the margins are better than the Indian margins. Definitely. For exports. U.S. canada should give us even better margin. Where we are trying to enter the market we will still take three to four months. Like I mentioned in my last call we are trying to build up partnerships there which will become a long term partnership for us. And then we will do work with them for the projects that they will get on a Back to back basis.
What we are seeing is that U.S. canada is definitely a better margin territory. China, we have no plans to export. Africa and neighboring countries give us a better margin than India. But not a fantastic margin compared to US and Canada. Margins are normally better in export because the responsibility becomes less. We design the building, manufacture it and supply and take our payment immediately. We are not involved in project management or payments by, you know, erection or something like that. So margins are better. And prices of steel and labor and fabrication because this is a very labor intensive item also are normally higher outside.
And countries in Africa etc. Don’t have any local facilities. So even with a higher price, a higher freight and duties there they are still competitive. The margins are better but depends on the various clients you have. Is not even country wide. I have to have the right partnerships in U.S. canada and Africa to get a better margin. Because my building could be more complex. My building could be larger which other companies cannot do. Then I will earn a better margin. So there’s no flat in this because it’s not a commodity. Once we understand that premium building is not a commodity which is sold on a kilo basis I think we will have a better idea.
But yes, generally you can command higher prices for exports. Indian market is very, very competitive.
operator
Thank you, sir. Mr. Rajat, I would request you to please come back in the queue for further questions. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants please limit your questions to two per participants as there are several people waiting for their turn. The next question comes from the line of Shubankar Gupta from Equity Capital. Please go ahead.
Shubhankar Gupta
Hi. Am I audible?
operator
Yes sir, you’re audible.
Shubhankar Gupta
Yeah. So first of all, Arvindji, congratulations on a great set of numbers. Once again. Thank you. Thank you for delivering on the numbers as you promised. First question for my side is that the steel prices have been rising for the last one month. Right? Should that be a concern for us? And what all measures have you taken for mitigating this risk?
Arvind Nanda
The steel price is something that a company like ours has to always take into consideration. They are cyclical. They generally always go up. In January, February, March, April. They are little stable. Then May, June, also stability. Then July, August, September, October, they start coming down. So this is a cyclical thing. It is a commodity. And the way we price our product, the way we sell to our customer is we take these things into consideration. It is not suddenly. It comes as a surprise. See, the thing which can affect you very badly is if suddenly it goes up by 30, 40% which happened to the Ukraine war or after Covid, which is, that is not expected.
But even then you can go back to the customers. If that happened when your train time we went back to the customer, that of course we can’t take the 30, 40. Otherwise you build it into your price as any good manufacturer will. If I’m making a car or I’m, you know, making any product which requires steel, like a contractor, you put, you take your in consideration. Ours is still a very short term business. You know, long term order is also six to seven months. We will take all the supplies. But there are contractors who have longer term.
So you build it into your pricing. But I don’t have a, I don’t. I’m not bound to give the customer every time the same price of steel. If I’m bidding today and I know that I have to buy the steel in March, then I will, you know, have a prediction as to what price will be there in March and I will bid accordingly. I will price my building accordingly. But also I have to compete in the market. So both the things have to be taken into consideration. But it is not that because the steel prices go up, my margin will be badly affected.
All the steel prices come down, my margin will dramatically improve. It’s not like that. There’s always a little effect because there will be a little bit of a lag. Some old orders could be with me which I’ve taken at older prices. We try to go to the customer. Sometimes we can’t get. There will be a little bit of a lag. But over a period of one year it really has no effect. It’s basically as a raw material management which is critical. Price management of the raw material, which is a critical aspect for any company, I would not say is any specializing.
Whether you are buying plastic or oil or petroleum product or demand, everything is the same. I mean cement is going through worse cycles. So you have to manage it. I think managing it is what we will call it. Not a worry.
Shubhankar Gupta
Okay, so what I hear, Ravindji, is that as a mitigation strategy we have a variable price contract versus a fixed price price contract. And if that is the case, what would be the percentage for let’s say fixed price versus variable?
Arvind Nanda
No, I’m not saying that we have any variable price contract. I’m saying that when we bid for the contract, at that time we predict what will be the price and we price the project accordingly and take the order accordingly. So it’s not that there’s A unless there is a delay by the customer and the price changes. If the contract then I can go back to him. Otherwise our prices contracts are fixed price. But when I’m pricing it, I have the full freedom to price it the way I want as long as I can compete. See, so if I predict, because steel prices are pretty cyclical, if you go through the last three, four years, they will run in the cycle like this between 50 and 60 and go through these months.
So it’s not variable or fixed. It is a management of price in the sense that I price my product, I price my project and I take the orders on a price which I predict I will be able to buy the steel at as a raw material. So that’s why I say project management or price management is the key, not the price itself.
Shubhankar Gupta
On the same question. So I think how I thought of this was let’s say two, three key strategies. Right. One is inventory management could be a way of mitigating it. Second could be fixed price versus variable price contract. And third could be hedging steel as a commodity because it’s an important commodity for us. Right. So within this is there something which we are doing?
Arvind Nanda
Yeah, yeah. See, stock management is an essential part of our business because of two reasons. One is the unreliability of suppliers. So we don’t know whether they will supply everything on time as we ordered. And each one of our buildings could have seven, eight different sizes or thicknesses that are required. So as a strategy, we always keep about two months of material in stock. So that of course also gives you the price stability. But it can go either way. I would have bought at a higher price and setting at a lower price. That could also happen.
But yes, that I know my fixed price. And second is that the steel companies normally take orders up to eight weeks delivery. So at any time I’ve got eight weeks of delivery orders on them, that means another two months of supplies is also known to me at a fixed price. So nearly four months known to me, the price is known. So that is the only thing that. We do
Shubhankar Gupta
makes sense. Makes sense. Got it. Okay, that’s fair. And for my second question, AR so I was seeing that the T margin has fallen by 70 bits. The reason for that is exception items. You know, one time statutory impact of new labor codes. I think I’m correct. So my question is how will that impact the ebitda? How will this new change in the impact of new labor code change the EBITDA and part impact margin for us going forward?
Arvind Nanda
No, I Think it’s a one time hit. So going forward it’s a calculation of gratuity. So because it is the last three or four years, that is why the amount is larger. Otherwise it is actually it only happened in one of our plants. For some reason we had to do this. Otherwise as a company we don’t have any employee which is less than 50% of the total salary is basic. So that is a change in the new law that the gratuity must be provided and the basic must be over 50% of the total emoluments. It was just a small part of our workforce which was not covered by that.
So I don’t, I think this three and a half crores if I’m not mistaken, maybe last three to four years effect. So you can take it maybe 30, 40, 50 lakhs a year, you know.
Shubhankar Gupta
Got it, got it. So it’s well spread out and I think from a future concern, from a future perspective it should not be concerned.
Arvind Nanda
It’s very minor. Yeah.
Shubhankar Gupta
Perfect. Perfect. All right. Thank you so much. Hardest congratulations once again.
Arvind Nanda
Thank you. Thank you. Thank you.
operator
The next question comes from the line of Sujeet Bora with Ambit Capital. Please go ahead.
Sudeep Bora
Thank you for the opportunity. Sir, for the numbers, my first question was regarding the revenue which has grown by 44%. So can you help us with the understanding about how much of it is, what is our capacity utilization during Q2, Q3? Because in terms of volumes like how much is volume driven and how much more can we expect before the next set of commissioning takes place?
Arvind Nanda
I think our utilization is pretty high now. So we are doing, let’s say we have done 522 crores. That means we are already doing about 156, 157 crores a month.
Probably we still have scope for another 10% increase before the next capacity will come into play. So it is mainly quantity driven only. There is not a price driven sale. So we are trying to add, that’s why we want to add our capacity a little faster than what we had planned earlier. So that Gujarat new plant will come into play by June, July. That will give us additional capacity within a couple of months after that. And the phase two of the Gujarat first plant will also come into play by October, November. So that is already the case.
So we have to ramp up our capacity. You see last year we gave a target figure of that we will touch this year. 1710 or 1720 crores. That was our target principle. 1710, 1720. I think we will touch probably 1900 this year. So that’s like in terms of 17 and a half percent growth, nearly a 30% growth. So that has utilized a lot of our capacity. Next year we are predicting that we will do 20% on 1720 which comes to about 2060 crore if I’m not mistaken. Right. So I think we should cross that. We are building up enough capacity that we should cross that figure next year.
You know, from 1900 to go up, maybe we’ll cross 2100. And our final figure of 2728 was 2500 crores for which also we are building up the capacity. Now with new added capacity we might cross it. But we stick to that figure that 2728 we will definitely do 2500 crores as promised. And hopefully with added capacity we might even cross it. So we are well on our way to achieve our target for the capacity. We are adding capacity accordingly. We have grown a little faster this year because of the fact that we have, you know, utilization of capacity came in faster and we managed to achieve our targets also.
So that is the way we are looking at it. For our Overall target was 2728. At 2500 crores remains next year target will be a little higher because this year we have achieved more. So capacity utilization right now is pretty high in that sense. But that is the reason why we want to add capacity also faster and build up little bit capacity that we have with our satellite plants there also we are looking at it that if we can safely do added capacity there and we will manage to do that also.
Sudeep Bora
Okay, so what would be the volume number for Q3
Arvind Nanda
in tonnage?
Arvind Nanda
Yes,
Sudeep Bora
just one second.
Manish Kumar Garg
I will give the number, sir, I’ll give the number. So it is. Yeah, it is 44, 948 tons. About 45,000 tons.
Sudeep Bora
Thank you sir. So regarding the, the margins, so now like considering that we have expanded our capacity and we are on, we are working towards more capacity expansion. So how would it impact our margin estimates for say 2020, 26, 2728? Because like if we aim for higher utilization, it might be margin dilutive.
Arvind Nanda
We are hoping that little bit of operational leverage would have kicked in. But since our expansion is at a much faster pace. So you know, in our case the expansion also means that we have to expand our design engineering force. We have to expand our project management, our sales force.
These expenses also kick in and more in advance of the plant, the heavy structure. Also we are investing into the people so that we can achieve that sales also which are right now not Included in the projections heavy structure. We are not including in the projections right now also we are looking at exports. So exports also adds a little expense. Some people cost, some investment has to be made in exports before you can start getting satisfactory orders. So I don’t think our Indian margins will be badly affected. I think they should be the same. We are trying to increase it by better economies, internal economies, better purchasing.
I think our purchasing power is better today. Our productivity is better. Wastages scrap all these angles we are looking at to improve our margins. Internally there is a lot of scope and I think we can do that in the coming years. Externally I don’t think we can expect that we will get better margin on customer. Of course we keep trying but keeping in view the competition and the fact that we have to keep our customers with us we are not accounting for that. If it happens, very good. But if it doesn’t happen we are not accounting for it.
I don’t see our margin going down. Definitely not. But yes, the chance of margin going up is a little also less because of these additional costs that we are bearing to build up the future business. In our business it is always very important to also look at the future. Quarters are important, annuals are also important. But like I said we are a capital goods industry. So in a capital goods industry you are always looking forward how to give a better product to the customer, how to do different things. You know those things are very critical for us.
So we do that. But I don’t see any reason that the margin should go down.
Sudeep Bora
Okay. So like it would remain the same as we have seen in FY 2016, right?
Arvind Nanda
Yeah, just you know maybe 0.1 or 2% here or there. We don’t end it. We don’t projecting anything different. I think we are in the end of the year we will be the same.
Sudeep Bora
Okay. And last question maybe if you can help us with the capex incurred in FY26 till now and what is our outlook in terms of guidance for 26q4 and 27 and 28
Arvind Nanda
in terms of sales and
Sudeep Bora
in terms of Capex.
Arvind Nanda
Capex. Sorry. Okay. See we have already spent about. I would can you update them. 60 or 70 crores already gone. Manish already spent in last 4 months.
Pushpendra Kumar Bansal
Another 30. I think we are going to spend this year more.
Sudeep Bora
So 60 is in. Is in last quarter or it’s in nine months
Arvind Nanda
lost nine months. The plants mostly started in September, October. So I think another 30 or 40 will outgo by March. So that by March I think we Would have spent about 100 crores. 120. How much?
Pushpendra Kumar Bansal
120.
Arvind Nanda
120 would be the outgo by the end of March because all the machinery and all will be in. Then another I think 30 or 40 will be left for first quarter of the next year. So that is 150 crores we had projected that we will spend on these two existing plants and little bit of course upgradation and all the other plants is constantly happening. So that is how we are going to be spending the 150 crore capex by I think June or July.
Arvind Nanda
Okay, thanks for the opportunity. Thank you.
operator
The next question comes from the line of Vishal Mehta with Oakland Capital. Please go ahead.
Vishal Mehta
Hello sir. Am I audible?
Arvind Nanda
Yeah, yeah you are.
Vishal Mehta
So just wanted to understand that if you could just highlight what is exactly. The use of this QIP of 100 crores going to be towards. So from what I understand the AP. Phase 2 capex is going to be. 75 crores which will add 24,000 metric tons of high HSS heavy steel structures. And will this also include some capex on the PEV side And if you. Can quantify what will be the capacity. Addition in that aspect.
Arvind Nanda
Yeah. So we are planning two things. One is to double the heavy structure capacity from 20 to 40,000 tons or 45,000 tons. That should cost us about 70 crores. And then have a totally new plant in Gujarat. So that the sixth plant, you know, let us say our sixth fully integrated plant. The fifth one is ongoing in Gujarat. The sixth one also we start this year. The total we are predicting about 120, 25 crores. I think we can generate some from our internal resources. So the QIB will be primarily used for these two projects.
Vishal Mehta
So what will be the capacity addition. In the Gujarat plant for the peb?
Arvind Nanda
So with the second each floor is approximately 40000 tons. Okay, so first, first plant that is coming up our capacity will or utilizable capacity will be approximately 200,000 tons. And not counting the heavy structure, 200,000 tons. And the sixth plant will also be 40,000 tons. So each fully integrated plant for interage is approximately 40,000 tons of buildings.
Vishal Mehta
So that is effectively. So effectively we’ll end up with 2. Lakh 40,000 metric tons of EV capacity. And another 45 odd thousand of heavy steel.
Arvind Nanda
Yeah.
Vishal Mehta
And sir, if you have to quantify what is the sales potential from this. Expanded capacity, what would you say that. Would be and when would we realize.
Arvind Nanda
That the total capacity of each plant is approximately what 500cr so we have right now four fully integrated plants. So that gives us a capacity about 1900 to 2000 crores approximately. Combined with our satellite plants doing certain things. The fifth plant in Gujarat will add another 500. So that will take us to 25 which is what we had planned for 27, 28 utilization. And the sixth Gujarat plant should take it up to 3,000 crore. But the sixth plant is being added in anticipation that if the market demands and we are able to perform then we are ready.
Then the plant should not be back. Sort of an issue that we cannot take orders. The capacity goes up to 3,000. And if we have 45,000 tons of built up heavy structures that would be another 500 crore. So the total capacity of internal by March next year or a little in 1Q27, 28 should be about 34. 3500 crore as presently planned.
Rajat Baldewa
Okay. Great. And just for one bookkeeping question. What is the total cash on books. Today
Arvind Nanda
it’s 200 crore plus.
Vishal Mehta
Great. Thank you so much.
Arvind Nanda
And no borrowing. We have no debt.
Vishal Mehta
Sure.
operator
Thank you. The next question comes from the line of Raghav Maheshwari with Kamyak Wealth Management. Please go ahead.
Raghav Maheshwari
Yeah. Hi. Thanks for the opportunity. First of all, congratulations on a great set of numbers. So just wanted a clarification on this pandemic of QIV that you were talking about. So sir, in our PPT I can see we had mentioned that approximately by the end of Q2 FY27, 40,000MDPA of capacity is coming like for PEB in Gujarat right now of this hundred crores, what will be the extra addition into that?
Arvind Nanda
That’s another 40,000ton. That will be the plant.
Raghav Maheshwari
Sorry sir, your voice was generous.
Arvind Nanda
So that. That will be the sixth plant. So right now what we are doing is our fifth plant in Gujarat. So the additional QIB when we plan to raise is because we want to put up the sixth plant faster than earlier planned. So the capacity of PEB will go up by another 40,000 tons in Gujarat with the QI.
Raghav Maheshwari
Okay, so. So in total how much of the capacity is coming live by Q2FY27.
Arvind Nanda
FY27. The plan is that we should have a total of 240,000 tons of PEB. We right now have 200,000 160,000. And two new plants will come up of 4040 each in Gujarat. That is taken to 240,000 of PEV.
Raghav Maheshwari
Okay. Okay. Got it sir. Got it. And. One more question was on the capacity utilization front, I Think that got answered. So that’s all from my side, sir. All the things. Thank you.
operator
The next question comes from the line of Rahul Kumar with Vicaria Fund. Please go ahead.
Rahul Kumar
Yeah. Hi. So just on this new orders. Well, in this quarter which particular industry drove the strong growth?
Arvind Nanda
Manish, I think. Can you take this?
Manish Kumar Garg
Yes sir. So sir, our orders during the quarter came mainly from manufacturing as well as the renewables and multi story data centers. So these are the three industries that majorly came from. And we also got one major order from jsw jfe. It is for steel making, specialized steel making. So those have been mainly the industries that has given us the orders. Over 500 crores during the last three months.
Arvind Nanda
I think what we can add Manish is that even though the larger orders are not these but two good export orders we have got. So that’s a good start. And we have got an order for a ground plus 16 building which is going to be a hotel and one from NCAM lounge for our lounge. So there are a lot of non industrial building that we are trying to get into. We are bidding for quite a few. And with the heavy structure capacity I think we will increase that. But already we have started getting these orders.
So while the values are not very high but it’s a very important step for us to enter this field.
Rahul Kumar
Okay. And so can I also help us understand your previous work done in the. Data center business and your capability in that particular segment?
Manish Kumar Garg
Yes.
Manish Kumar Garg
So about three years ago we had done a data center for a. For an American company called Iron Mountain that’s in Mumbai, Rabalay. It’s a. It’s a ground plus five story data center that we had done for them. It was in the initial time when the data center started to come up. So it was one of the first ones which came up in steam. And as we speak we are also executing a data center for a company called Techno Electric which is actually an EPC company for an end customer called Rail Railtel. That’s in. That’s in Greater Noida.
So these, these are few of the data center jobs that we have executed in the past. Apart from this we have done a few semiconductor units. In fact the. The two which is coming up right now on stream. One is in Sanand and the other one is in Guwahati. Both of them belongs to one of them to Micron US in collaboration with Tata. And the other one is Tata Electronics in Assam. Both are being executed by us.
Rahul Kumar
Okay. Okay. And from your existing pipeline of the orders you know which are in discussion basically. Can you help us understand the, you know, the data center part of that?
Manish Kumar Garg
Yeah. So there. There are actually quite a few. So our pipeline actually right now consists a lot of. I should say the multi story institutional and commercial buildings. And each of those could be 10 to 20,000 tons. Apart from this, a lot of data centers for a lot of EPC companies as well as directly the data center companies we are working towards. So I should say that our pipeline do consist at least 15% of the data center and the. And the multi story steel buildings in that space currently. Okay. That is part of our pipeline. Yeah.
Rahul Kumar
Okay. Okay. Thank you. Thank you.
operator
Thank you. The next question comes from the line of Nishant Sharma with Mama Wealth. Please go ahead.
Nishant Sharma
Sir. Congratulations for a great set of numbers. My question has been asked, however, one question or a clarification I would like to have said. You mentioned that while for this year we had a target of about 1700 odd crore of top line. And we would be easily surpassing that. And most likely if we maintain the current quarter momentum, it would be around 1900 crore for this year. So shall we assume next year it would be subdued 10 12% kind of a growth. If we say the current order book of about 1600 odd crore which would be say for 9 to 10 months.
And if we extrapolate maybe next year we would be able to achieve somewhere close to about 2100 odd crore of top line. In that case we would have a subdued growth of about 10 12%. Will that be a fair understanding.
Arvind Nanda
Faster? We hope that we will do at least 50. Percentages are little deceiving in that sense because yeah, muted in percentage. It’s still crossing whatever we planned. So I would say that yes, we will do better than what we had predicted. Maybe we did a little bit more this year and little less in percentage next year, which is better. I think the faster we can achieve the numbers, the better it is. So yes, I think, I feel that next year we will cross. We should touch 15% is my projection not 20 as we had projected earlier.
Because of this extra from 17 and a half to 30% growth this year has increased our base period faster than we expanded. But let’s see what happens when we put up new capacity. How fast we can do it. So it’s a little open question. But Yes, I think 12 to 15% we should certainly be able to get. But that means we will. The 2,060 crore turnover which we had promised for 26, 27, we will certainly cross it by maybe 50 to 100 crores. So the figure will be still higher than what we had projected.
Nishant Sharma
All right, sir.
Definitely. And the new, the second phase of the new capacity that would also come in in FY27 and that’s where the FY28 we can see the more, I mean the faster growth maybe from that perspective.
Arvind Nanda
Well that is why we are going in for this QIB because rather than waiting for internal resources and then starting it next year for 2728, 2829, we feel that if we prepone it by a year, you know, it might get filled. So I think if we start immediately by next March, both the new projects that we plan to start, the Gujarat Plant 2 and the AP Farm Plan 2 of the heavy structure, I think by March both should be in place. So they should be able to contribute in 27, 28. Definitely. Yeah.
Nishant Sharma
So lastly on the margin front, while you have very clearly outlined that the margins are unlikely to fall and maybe continue constraint also because we are prepooning the capex so margins may not be able to improve from about 9% kind of a number that we are in, in FY26. But will the mix in terms of orders have some leeway that it can improve from say maybe 9% to about 10 odd percent by FY28 purely from a project mix perspective or maybe there would be operational efficiencies may also kick in and we can reach to that number or largely as you earlier alluded that it is likely to remain the same.
Arvind Nanda
You know I think it’s going to be a combination of many things. See once you realize that because of competition if we have to plan reasonably well in advance. So our feeling is that because of the competition we may not be able to get better prices on customer. Now how do we improve our margins or keep them and go up? I think internal economies, better productivity, trying to get into exports. I think these are the steps we are taking because there is in companies like there can be a lot of scope for internal improvements, you know certainly in purchasing, in waste management, scrap management, in productivity.
So we are looking at it like a overall picture. I would not say that just one thing will matter of course if the project mix changes and you have, you know, bigger buildings and more complex building coming up. People want it faster and faster. Government has announced a lot of plans for electronics, for semiconductor. These people are always in a great hurry because they are very time bound. PLI schemes are in a great hurry so you can get better pricing also from them even if not better pricing because they are larger orders, you can make more money.
The net margin can be higher in a bigger order. So I think it’s a multi pronged approach kind of a thing. No one thing will help us. I think we need to look at all different angles constantly to make sure that the margins not only remain the same, but also how do we take them up because we, I believe that these margins are very low for the kind of work we do as a pre engineered building company, we take a lot of responsibility. We do everything from engineering to execution at site. You know, work of three different companies literally take payments as the material gets made rather than a steel company which charges you up front for raw material.
So I think we all deserve more. But yeah, Indian market is competitive and we can’t ignore that fact. So we are working on multiple fronts to make sure that the margins keep improving. But the results I think we’ll see. Normally the operational leverage should have kicked in by now for our past if we hadn’t kept expanding into say heavy structure and exports. But the other expenses are happening now and the income will come a little later. But I am quite sure that these margins can definitely be maintained.
Nishant Sharma
Sure sir. Thank you for the detailed answer. Hope to see while this year you have outpaced all the expectation on the top line, next year we expect that we see the outperformance on the margin front to your internal estimate itself. Thank you once again and many congratulations. For good set of results. Thank you.
operator
Thank you. Ladies and gentlemen, you are requested to restrict yourselves to two questions per participant. The next question comes from the line of Deepakshri Joshi with Ambit Capital. Please go ahead.
Deepashree Joshi
Hello sir, could you help us with the Pipeline 1 in Pipeline 2 numbers for the upcoming quarter or upcoming couple of months.
Manish Kumar Garg
Sorry, what numbers?
Deepashree Joshi
The five, your pipe order pipeline numbers, pipeline one and two that you’re making.
Manish Kumar Garg
Yeah. So our pipeline is cr, our throughput as we say, what we know, what we call as hit rate is about 20 to 22%. And right now we have our pipeline which is about six times of our monthly average order booking. That is our Pipeline 1 that we call. And our Pipeline 2 which is, which is a little longish kind of gestation period is about another six to seven times of our average monthly order book. So that’s the complete pipeline analysis as of today. And it is a mix of the new sectors which is renewable, semiconductor and ev.
And apart from that we also have very good traction on the multi story commercial and institutional building. And yes, it has our conventional, you know, business which is which is the industrial and logistics. The pipeline is pretty strong currently.
Deepashree Joshi
Okay, could you give an absolute pipeline one number?
Manish Kumar Garg
Yeah. So our average, we booked, we booked orders of approximately 550 crores during the last three months. So our average average order book is about 180 crores. So our pipeline is approximately about 200 times six. So that is, you know on, on a, on a total order, you know, monthly order book of 200, we have about 1200 crores of the P1 and approximately thousand crores of P2.
Deepashree Joshi
Okay, got it. And have you received or do you envisage any receipt of export orders via your.
Manish Kumar Garg
Yes, so we already received two export orders that I think we have mentioned. One in Myanmar and one in Ghana. And right now our order book does include a few export orders, also export inquiries, rather qualified inquiry which are, which are from African continent and North America. And we, we expect them to get converted soon.
Deepashree Joshi
Okay, so it’s from North American, so U.S. canada.
Manish Kumar Garg
That’s right.
Deepashree Joshi
All right. Thank you sir.
operator
Thank you. The next question comes from the line of Vivek Gautam with GS investment. Please go ahead.
Vivek Gautam
Yes sir. I just wanted to understand about the increase in the recent increase in the prices of raw material. And then have we in a position to pass on the prices for the same. And second thing is about the opportunity size for our company in India as well as in the export market and our differentiator versus competition. Thank you sir. Because the numbers have been good, sir. Thanks a lot.
Manish Kumar Garg
Yeah, thank you sir. So there are two, three parts of your question, sir. One is are we, are we able to pass on the, the raw material increase to the, to the customers in a way? Like Mr. Nanda explained, we are completely sort of insulated for about four months with two months of physical inventory and two months of pipeline inventory. And by the time we get then inkling of the steel prices moving a little up or down, we adjust them in our current order taking. So to that extent with the pricing mechanism by itself we are able to, we are able to more or less pass it on, give or take a little bit here and there.
Number two, you talked about the opportunity size in domestic as well as in exports. I can only say that the total addressable market is enormous right now. Right now I would say that we are only you know, experiencing the tip of the iceberg. So a lot of buildings and segments which are not using steel fully currently are converting into steel given the advantages of speed and green buildings and other things. So I would really say that the total addressable market is maybe 100 times of what the market size is today, right now. So there is enormous, enormous market.
And the export also is a very big opportunity. There are not, there are not many local manufacturers. When we come to African continent, even when we come to the North America or any, you know, CIS countries, there are not very large manufacturers. And exports do come into play when we, when we try and address the geography. And that’s why our foray into exports. So the market potential is in fact enormous both in domestic as well as, as well as in exports. I hope I have been able to answer your question, sir.
Vivek Gautam
Yeah, the last question remaining was the differentiator for us versus the competition.
Manish Kumar Garg
Differentiator, I should say sir, in our, in our business the real differentiator is your history, if I was to just say, and your credibility of having delivered complex large projects. So the differentiator with Interoc is that number one, we have been in this business for, for close to 43 years. And in this we have created a history wherein there is no project, be it large, small, complex, segment wise. You talk of an airport, we have done T3 airport, you talk about data center, we have done Iron Mountain. Means there is, if you talk, the largest project.
Yes, we have, you know, we have done a 300 crore, 30,000 ton plus. You talk of the fastest executed project. We have done it. So some gentlemen also asked if a conglomerate comes and you know, put in thousand, two thousand, five thousand crores, will, will they be able to beat? I would say they can, they can perhaps beat in the installed capacity but their utilization of the capacity will be a big question. Because when our customer buys buildings from us, they don’t buy it like a, like a civil contracting, like the buy, you know, they give a contract to lnt or somebody.
It is like a capital good. It’s like buying their machinery which will do the most critical work for them. And in any capital goods the decisions are not really made on price or the kind of capacity that a person has, but more on how those capital goods have been supplied for how long, to whom and how they have performed over the years. So I would say that the differentiator with Interoc in particular is our history of having delivered and never walked off a project. And you have seen our growth in, in last four, five years, even earlier.
That is a testament to, you know, the, the differentiation and we have been able to grow the volumes. You have seen this year, you know, almost 40% in nine months. Even earlier years you see the growth while you maintain volume growth you can only maintain your realization. And there are therefore the margins only when you have a choice to pick up the orders that customers want to want to give to you. So I would say differentiator is the history which has been created over, over last 40 years of having done and delivered projects to any industry and instead building agnostic, industry agnostic.
And that is why the same customers with their different branches or different segments keep coming back to us. So anybody can copy anything but they can’t really bring in the history of 43 years with no amount of money they can bring in that history. Maybe it has taken us 43 years to create this history. Somebody might do it in 25 years but it can’t be repeated overnight. That’s not possible. So that remains the differentiator. Sir.
Vivek Gautam
Thank you sir.
Manish Kumar Garg
Thank you.
operator
Thank you. The next question comes from the line of Devang Patel with Samiksha Capital. Please go ahead.
Devang Patel
Hi sir, I wanted to understand the opportunity size in India for the heavy structural steel capacity that we are putting up. So with 45000 ton capacity, what kind of market share would we have at full scale up?
Manish Kumar Garg
Yeah, so. Yeah. So once again sir, I’ll give you the, I will give you the current market size which is determined by what is the sales taking place. So as of now the structural steel that we are referring to, I’ll give you two answers to that. One is what is the existing sort of sales which is taking place is close to about half a million tons there. Now the kind of capacity we are creating is about 50,000 tons, you know, 40, 45, 50,000 tons. So that’s the market, you know, share we will get once we, once we are fully operational.
In terms of the total addressable market that is once again enormous. It could be, you know, 30, 40 times over it is currently. So the structural steel capacity, what we are referring to, the multi story and heavy steel is still pretty limited. There’s still not, not many players in that. So I would say the market is going to grow at a much faster rate than the capacity which is being created by all the stucco steel manufacturers, including us. Now
Devang Patel
when you mentioned earlier order of the supplies to gfe was that for a PEB order or was that for steel?
Manish Kumar Garg
It is a pre engineered building, sir.
Devang Patel
Okay. And the semiconductor steel business, would it be now how would it impact our margins in ROC overall?
Manish Kumar Garg
It should, it should be around the same, should not be ROC in terms of, in terms of, I should say ROCE also should not be impacted because if you look in overall scheme of things. Let’s say when we reach 275, 300,000 tons, we are still, we are still only counting 50,000 tons of this business. So it is not going to impact our ROC or margins thereof. The margins are going to be in the similar range.
Devang Patel
Would that business cater to the whole half a million ton demand or only specific parts for multi story?
Manish Kumar Garg
Now it will cater to the entire half a million tons.
Devang Patel
Okay and so last question on working capital cycle. What than we expected to be this year? Are we seeing any change from previous year for our working capital cycle? And right.
Manish Kumar Garg
I think our net working capital is at about 34 days and we are, we are right now doing very large, large projects wherein the cycle time is a, is a bit higher through the EPC contracts. We’re doing semicon. We’re doing so though we try and maintain it in the similar range through our, through our tight operational, you know, controls. So we will try and maintain it within the same range. But it can, it can go up a little bit here and there.
Devang Patel
Would there be any change in our build discounting? How much we run down.
Manish Kumar Garg
Build discounting? I didn’t, we don’t do any build discounting as such. Okay. We don’t do any builder counting. It is all, it is all clean collections.
Devang Patel
That’s all from my side. Thank you so much.
Manish Kumar Garg
Thank you.
operator
Thank you. The next question comes from the line of Nikhil Purohit with Freedom Asset Management. Please go ahead.
Nikhil Purohit
Hi, thanks. Thanks for the opportunity and congrats on a great set of numbers. So firstly based on the volume number given I believe there is some realization decline of about I think 7, 8%. Any, any reason for this?
Manish Kumar Garg
Which one you said? Sir, can you please repeat your question. Once again on.
Nikhil Purohit
So the volume that you’ve given. Based on that I think there is. Some realization
Manish Kumar Garg
only very little bit. So the volume growth is to, to be precise, year on year is 45.8% whereas the revenue has grown by 43.7%. Right. Okay. So there is only very little difference. And that is because of the raw material. Yeah, that is because the raw material moving downward a little bit and because EBITDA has remained, you know, similar. Therefore there is, there is no effect in realization as such.
Arvind Nanda
Does depend on the steel price. Because if a steel price is 50 or 100 our realization will go up enormously. But the margins and the delta and these things should remain the same. You know, that’s why we give the tonnage because that is an indicator that what is our production productivity and sale because the final price in many ways is not totally in our hands. You know, even when we are building a tomorrow price drops to 20 rupees. My delta might be still 30, 40. But the final price will be 60 instead of 100. You know, like that.
Nikhil Purohit
Got it. Got it. Got it. And on the capacities. So you mentioned around. So we have I think 200, 201,000 capacity right now after Kicha expansion and AP phase two we are adding two plants in Gujarat. So this should take it to. And 40,000 is the. Each metric is the capacity for each plant, right?
Arvind Nanda
Yes.
Nikhil Purohit
So this should take it to 2000. Around 280,000. Right. You mentioned
Arvind Nanda
we are separating the heavy structure from PEB. So PEB we have right now 200,000, 160,000 and Kicha Line is. And the other things have added about 15, 20,000. So say 200 and 180,000 is the PEB capacity right now. Then the added add on is the AP one which we are adding for every structure that’s another 20, 22. So that takes you to 200. Right. So with the new AP new AP will add another 20 and new Gujarat will add another 40. So total will go up to 200. Whatever. 60, 80. But heavy structure is separate.
So with the existing. Okay. Yeah. Each plant we plant will give us 40,000. So Gujarat will be the fifth plant. So PEB capacity will become 200,000 with the fifth plant. Or 210 because of Kitcha. Or 220. Yeah. And then separate 40, 45 for heavy structure.
Nikhil Purohit
Okay. So what land parcels do we currently have on our books for all the capacities coming up? Are they all acquired?
Arvind Nanda
No. Gujarat we have to acquire. We have put in that I think it’s about 7, 8 crores. We need more to buy additional land for Gujarat. The second plant, first plant is of course sufficient. And in the AP heavy structure we have sufficient land for three, at least three lines. Right now we have done one. We are planning the second. But we have for the third as well. That is the land bank we have currently.
Nikhil Purohit
Okay. Okay. And lastly, so considering the strong demand that you see and since we have also revised our growth guidance for next year where do we see our closing order book for FY26? Being it
Arvind Nanda
FY26 I don’t see much change. Because till we have got the added capacity I don’t think we should take a risk of taking more orders. See 1600 and whatever 50. Let us say 1600. If we had to execute in nine or 10 months also that takes care of Our turnover for next year. Right. So that means we have more or less nine months of business already. And people are not able to take delivery nine months later. So we have to balance it out. We can’t take everything. But yes, I think it should be a little better than what it is.
Gradually we’ll keep improving it. Increasing the order book. Based on our capacity if next year we are predicting say 22,100. Let us say so our order book should be about 1700. If it’s a nine month order book which we already have. Luckily one or two orders were long term. Like JSW is a little longer term order. So we could book those. You have to be very careful that we can’t take orders more than we deliver. Because any you fail. Like Manish was already mentioning, our history and our reputation is based on that. And that is more critical than taking another order and destroying everything.
So I don’t know how much the order book will go up. Sometimes you get a large order and the order is to be delivered over 8, 10, 12 months. So we take it. So a lot depends on the situation. But I think if you want to achieve 20, 100 crore, 16, 1700 crore order book is a very good order book.
Nikhil Purohit
Understood? Understood sir. And just last question. If I could squeeze it in. I had some confusion over the phase one of the heavier structure facilities. So earlier we had communicated that this will come up by September 2026. Am I. Am I right here? And has this capacity already come on.
Arvind Nanda
September 26th this year
Nikhil Purohit
So this is not common already, right? Because you know phase facility is on. So that is not for heavier.
Arvind Nanda
That is for the see heavy structure. The plant started in September last year. It will be machines and all will get installed by June 26. And commercial production by July, August or May. That’s why we are saying September. The plant, the first phase of the heavy structure for 20,000 tons will start. The second phase is what we are talking about now. Starting it now so that the second phase also finishes by end of this year or early next year. The heavy structure will have two phases. One under. Already under construction.
Nikhil Purohit
Yeah, got it. Good. Thank you so much.
Manish Kumar Garg
Thank you.
operator
Thank you. The next question comes from the line of Raman KV with Sequin Investments. Please go ahead.
Raman KV
Hello sir, can you hear me?
Arvind Nanda
Yes.
Raman KV
So you have a current order. Your current out of position is 1685 crores. How much was the order inflow for the entire quarter? Q3.
Arvind Nanda
So I think it’s a turnover is what? 523 plus we’ve added 50. So you can say about 573. 575 crores in the quarter.
Raman KV
570 crores. So the entire nine month periods. Sorry, for the entire nine months period.
Arvind Nanda
Nine month period. I don’t have figure. Manish, can you give them a nine month figure or what was it in the beginning of the first quarter? In the main I think. Yes, yes, yes.
Manish Kumar Garg
So it was 1634. So I think. I think for the entire nine months it’s been about 1600 crores.
Raman KV
Understood, sir. And so can you also provide with the bid pipeline and what’s our win rate?
Manish Kumar Garg
I think sir, we did provide this answer. But I will. I will say it again, sir. Our hit rate is about 21%. And our pipeline, what we call P1 and P2. Our P1 is about 1200 crores. And similar is our P2 which is the longer gestation period.
Raman KV
Understood, sir. So. And my second question is. I just want to understand. I’m. I’m a bit confused with the capacity expansion. Currently we have 1 lakh 80,000 metric tons of annual production capacity. And then we are planning to set up a new plant in Gujarat which will. Which will add 40,000 capacity more. That will take us a capacity to 2.2 lakh metric tons per annum. Is my understanding correct. And then we also plan to have another plant in Gujarat for which the. You’re planning to buy the land. And that will add another 40,000 metric ton of capacity.
Manish Kumar Garg
Absolutely right, sir. Absolutely right.
Raman KV
And the second plan will be coming in 2027.
Arvind Nanda
Yeah, we are planning to start it so that by the first quarter of next calendar year it should be in production. Yeah. We are hoping that the land will get secured. We’ve already made arrangements with the seller. So the land gets secured then we need about nine months to put it into production.
Raman KV
This unit will be the sixth PB6. The PEB unit. Right?
Arvind Nanda
That’s right.
Raman KV
And upon that we will have another 40 to 45. 40 to 50,000 metric ton capacity of. Heavy structure st.
Arvind Nanda
Yeah. 40 to 45.
Raman KV
And in the first phase we have 24. And in the second phase we will be adding 20.
Arvind Nanda
First phase which is ongoing. Finish by June and we commercial production by August. September will be about 20, 22. They’ll be about the same, just a duplication. And then the second phase which we want to start construction by March, by next month now that we have the clearance on the board. So start in March. And I think that will take another nine months. So we Are hoping that by December, January the phase two of the heavy structure plant also is in play. Talking about we want to finish it by end of the next financial year.
Raman KV
Understood sir. And so the last part of my question is for this heavy structure see can you give the entire capex for like 50,000 metric ton and also for. The Gujarat plant what’s the total capex. For the Gujarat plant?
Arvind Nanda
Gujarat and heavy structure second phase. Because now heavy structure we already have the land development and the land is already done. And so we need about maybe 70 and about 75, 55 to 60 for Gujarat. So what I anticipate maybe 125 to 130 crores for the two new additions we want to start this year.
Raman KV
And how much, how much did we already spend in the phase one?
Raman KV
Phase one we have spent about. I think with the land in Gujarat we spent about 65 or 70. We will spend. It’s not finished yet. And in the Andhra one we would have spent same about 70 without the land. So it will be a duplication. In Andhra it will be a duplication. Gujarat will be duplication plus little bit of land.
Arvind Nanda
Okay. Understood sir. Thank you sir.
Arvind Nanda
Thank you.
operator
Thank you. Ladies and gentlemen, due to time constraint this was the last question for today. I now hand the conference over to the management for closing comments.
Arvind Nanda
Thank you very much everybody for joining. I hope our answers were clear and satisfactory. If not any of you can approach us through Ambed SGA to have more clarification if you need. We are always available to you. We thank you once again for taking out your time. And I hope all of you are already invest invested in our company. If not I’m sure you will. It’s a very very fast growing industry and I think we have made a good position for ourselves. But thank you very much for attending and all your help and support. Manish.
Manish Kumar Garg
Yeah. Thank you. Thank you everyone. And we can end the call now. Thank you.
operator
Thank you sir. On behalf of Ambed Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.