Interarch Building Solutions Limited (NSE: INTERARCH) Q4 2026 Earnings Call dated May. 14, 2026
Corporate Participants:
Arvind Nanda — Managing Director
Pushpendra Kumar Bansal — Chief Financial Officer
Analysts:
Sudeep Bora — Analyst
Shubhankar Gupta — Analyst
Rahul Kumar — Analyst
Dhirendra Kumar Patro — Analyst
Nikhil Purohit — Analyst
Deepankar Singh Bisht — Analyst
Nikhil Gupta — Analyst
Vedant Sarda — Analyst
Avnish Tiwari — Analyst
Raghav Maheswari — Analyst
Om Bhamburkar — Analyst
Devang Patel — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Interact Building Solutions Q4FY26 earnings conference call hosted by Ambit Capital. 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Sudeep Vaura from Ambit Capital. Thank you. And over to you sir.
Sudeep Bora — Analyst
Good evening everyone. On behalf of Ambit Capital, I thank the management of Interarc Building Solutions Ltd. For the opportunity to host their Q4FY26 earnings conference call to discuss the results. I am pleased to welcome Mr. Arvind Nanda, Managing Director. Mr. Pushpendra Kumar Banchal, Chief Financial Officer. Mr. Anil Kumar Chandrani, President Corporate Finance and Strategy and Mr. Viraj Nanda, Executive Director. Now I invite Mr. Arvind Nanda to take us through the key highlights of the quarter post which we will open up for Q and A.
Thank you. And over to you sir.
Arvind Nanda — Managing Director
Thank you very much. Thank you everybody for joining the call. I’m Arvind Nanda, my new director of the company. Like usually I will take you a little bit through what preeminent building is and what interarc is so that we all have an idea what this segment is all about. I’m sure most of you already know just to refresh. So premium buildings are primarily steel buildings. Primary focus of Interac has been till now mainly on industrial buildings and warehouses and such like industrial construction.
But steel buildings can be used for any kind of building that exists. So engineered building. How they differ is in how the steel building is actually ordered and made and delivered to our customers in a normal case. Steel building for industry has been the norm for many decades, I would say centuries since steel was invented. Because steel is a very easy to use material, structurally very strong, flexible and does lend itself to a lot of off site work before it comes to the site. Traditional method of a steel building would be that the industrial client or warehousing client or any client would hire a consultant who would be the industry consultant for that.
It was a paint plant or a lithium battery plant or a FMCG plant, automobile. They Would go and hire an industry consultant. Industry consultant would make a requirement and also make a method how to make that building. So he would design everything, engineer the whole building, make a complete BOQ in tonnage and columns and beams, roofing, cladding, everything. A bill of quantity would be made and tendered out to a client contractors. So the contractors would bid for it on a ton basis, square foot basis, etc, etc, and then the contract would be awarded by the client or the consultant to the contractor.
The contractor then or the client with the client or separately when the steel building part comes into play, would go to the steel companies and order the ready made items. As for the boq, the consultant would have normally or always put in those items which are easily available in the market in terms of X section, Y section, red section, roofing sheets, wall cladding, nuts and bolts, everything which has to be available ready made in the market. The contractor would then pay the steel company buy all these ready made items in a standard form, bring it to the site once it is ready for erection, and then start fabricating the building at site.
So all cutting, welding, drilling, painting, everything would be done by welders and drillers and fitters at the site itself after the basic groundwork has been done. And then of course the building would get completed. Sometimes the roofing and wall sliding contractor would be the same one, sometimes different one. So in this case, the problem that most people faced was that there was no one company or one body responsible for the whole building. There was a client who had to hire a consultant, then a contractor and then a supplier of material.
The minimum would be three different companies and none of them would hold responsibility for the building consultant. If he did do the design wrong or some problem happened, he would just put their hands up and say, nothing, I can’t do anything. Contractor would go by the design or the requirement as put by the consultant. If there’s any change or any changes in price, any changes in design, or any defect in design, it would be the responsibility of the client. And then again, the steel companies of course had no responsibility at all because they were only a supplier and they would supply what is available when it is available, at whatever price it is available.
The contractor might have to go to many steel companies to collect that material at that time. So this meant that there was nobody responsible for neither the price, nor for the completion, nor schedule, nor the quality. At the end of the day, customer always suffered, but that was the only way that they could do it. So how clean unit building changes this whole system is that now consultants still hire the client, still hire the consultant. For as industry specialist, he designs the building. He gives the requirement that this is what I need.
Length, width, height, loading cranes, mezzanine, earthquakes, whatever the area is, zones, lighting that I need, air transformations that I need. He will just give a requirement. He doesn’t tell you how to design or engineer the building. The premier buildings companies are given this requirement. And now the pre minute building company like Interact would first design and engineer the whole building. We have two, three advantages. One is that we manufacture every item ourselves. Our raw material being a plate or a coil.
So that gives us a big advantage that we don’t have to rely on what is readily available in the market. We can make it actually whatever is required for that building requirement. So that saves of course a lot of steel because it is designed just for that particular requirement. One column can have three different thicknesses, you know, different column, beams of different thicknesses, flanges and you know, the beam. Everything can be designed to that structural requirement. So therefore our design engineering department has the flexibility to design the building to the best of the ability.
Then the design engineering company department will calculate the total cost of the materials. There will be three, four different types of materials. Hot roll plates, coil, galvanized coils, some rods and bracing, roof and wall cladding, coil hardware, nuts and bolts, et cetera. They will calculate the total cost, total requirement of all these materials. And then at a certain pre decided cost, which the company will decide internally, we will cost the whole building for the manufacturing material requirement.
Then how much will it cost us to manufacture it in our plants, paint it, take it to site, freight it and actually erect the whole building for the client. So we will give the client a lump sum bid for the building, which include design, engineering, manufacturing, taking it to site and erecting it as a complete building as a product. So the client now gets one price for the whole building. The design, engineering, the steel prices, the cost, the manufacturing, the delivery at site and erection is now all the responsibility of one pre unit building company.
Instead of, as in the earlier case, multiple companies were responsible. Now he gets one building, as we say, on one date and at one price. So that is a big advantage the customer gets. Besides that, he also now gets a very high quality product. Because the whole building is actually manufactured in our plant. Nothing is actually done at site. Everything from drilling, cutting, welding, to the exactly to the right size, painting, even is done in the plant in very controlled conditions, using highly automatized build machine and of course very skilled people at site.
It is only a nut and bolt assembly which happens. So it gets a very high quality building. Then also because the building being manufactured in the plant at the same time as the contractor is doing a lot of the civil work, including foundations etc at site. So speed is very fast because we have made the building ready for delivery at site the day his foundations are ready. Normally the contractor would have bought standard materials from the steel companies and then started fabricating as on that date.
But right now our material arrives ready to be erected in a nut and bolt assembly. So not only does he get high quality, but he gets very fast speed. In most cases we have seen the client can save up to 50% of the time compared to a traditional steel building. So that is, these are the advantages. Then how does Interoc become a good player in that is, by developing relationships with companies. Because we are now more or less treated like a capital goods partner of the company. Because like in capital goods, like the machinery that in Asian paints or in HUL or Excite battery would order, they give us a requirement and they say now you will fulfill it.
So they have to rely on a company like us to meet their full requirement. So we say that we are actually the first capital goods requirement company of the client. So therefore, relationships, what is our past work, past history with the client, with the industry, with those kind of building becomes a very critical factor in the customer’s decision as to who should he give the work to. Price is secondary in these cases because the design engineering ability to manufacture supply on schedule erected at site is more of a key factor.
And not only do we do tasks like design, engineering, manufacturing and supplying and erecting, but we have to do it in a very, very controlled and a very sequential. And the delivery has to be very, very perfectly done because the building will start from one end and carry on. So from that side, every item has to be supplied, Whether it’s a nut, a bolt, a clip, Even the smallest item has to be supplied in a proper sequential erection, sequential form. Every item becomes very critical. Therefore, not only do we have to do all these things, but we have to ensure that the whole building is supplied in a proper format so that the building can be erected at site by the certified builders that we have in a proper manner.
And they are also fully equipped with proper equipment, proper tools, properly trained people, cranes, resources. Everything is already organized at site. So it’s a very complex system to supply that whole building in terms of engineering, making a boq, buying all the raw material specifically for that building, manufacturing each item in a Sequential form and supplying it in a sequential form and then of course erecting it. Relationships, your past history, your ability to design and engineer and deliver building are the most critical factors when the customer considers a company for using a pre engineered building.
The Interact has of course built itself a very good position in the market. For last 25, 26 years we have dealt with nearly every company, every kind of building, every geography. So therefore we always say that we are completely building agnostic, industry, agnostic, geography, agnostic. But we also have to erect. Whether it is in Assam or Coimbatore, or in Odisha or Bihar, the projects have to be also erected. So it’s not a matter of just delivering, but we have to go and erect the project also.
So our ability to work in certain geographies becomes as critical as the ability to supply. So that is the abilities which Interact has built up. And therefore we are considered a preferred partner for many of the larger companies, many of the specialized companies and many of the new age companies as we call them, like lithium battery, EV data centers, you know, solar industry, renewables. These companies have very large requirements, very tight scheduled requirements. Therefore they go by our history.
What have we done in the past with most of these companies? We’ve already done some projects in the past, similar buildings or similar size buildings we have done in the past and supplied very well. So we become a preferred partner with these companies and therefore a chance of our getting the order becomes a little higher. So that is how we have developed Interarc and the preunate building. And today of course pre unit buildings are getting more and more popular because people want to do more and more off site work.
They don’t want any work to be done at site. More and more structures, whether it is high rise, whether it is data centers, whether it is stadiums, malls, airports, everybody wants that material comes ready made from the plant and just done a nut and bolt kind of assembly at site. So there can be pre inate building and they can also be pre engineered structures. So as we have seen all over the world that the only way that company countries can develop fast is by using steel. And in steel most of the countries have only managed to develop at a speed by using pre engineered steel.
Ready, made, ready to erect and it comes at site because most of the sites don’t even have much space or don’t have. They have constraints of how much material they can store or want to store and they just want immediate direction with the least number of people, skilled people, right resources and the least number of people. So that Is basically how the pre unit building industry works. And we have seen that gradually now more and more buildings like data centers, your high rise building, commercial are becoming more and more popular to use steam as labor, environmental reasons, customer speed requirements, scheduling requirements, the value of speed, the value of quality is also coming in other areas besides the manufacturing and logistics.
Therefore we have of course been gearing up and we have done a lot of building which are non industrial like hospitals, hotels, data centers, you know, Airport, Delhi, T3 terminal was done by us many years ago. So we have, you know, done all these kind of buildings. So we have become like a preferred partner with all these areas, all these customers. And also we do a lot of marketing and business development as a company that has been the base for our group that constantly we are doing business development, marketing, going to new companies, going to companies which are not using pre minute building right now, showing them what we can do.
New companies coming into India, first time consultants, constantly we are having seminars and presentations and in house seminars to show to them how pre minute buildings and interoperability or steel structures and interact can add value to them. So it’s not that we wait for inquiries to come to us and bid, but we do a lot of marketing and business development. And that also happens a lot like R and D in the house. Because unless we are prepared and unless we have the capacity and skill to do design, engineering and manufacturing and erection of a high rise building or a data center or a lithium battery plant, I cannot go and offer it to a client.
But first I have to prepare myself in house. Capabilities are very critical in pre minute building. I can’t go and take an order and then hope for the best. I have to be fully prepared. My customer will go through every single point as to how will I do that building, how will I manufacture it, how will I engineer it and then only will I be able to bid for these new kind of new age buildings. So we always are constantly preparing with better engineering, Better software, better hardware, better skills, better manufacturing skills, better erection skills.
Therefore staying ahead of the curve as far as steel buildings are concerned. Over the last one year I will give you financial details also. But over the last one year as promised, we have started two new plants. One in Andhra Pradesh which is fully geared towards heavy structures. Heavy structures, what we call are more used than data centers and high rise buildings. In some of the very large structures, a certain percentage in lithium battery plants and solar plants, some structures are required which are heavier than each piece of a prejudice building.
So that plant will specifically Cater to that segment of the market which is growing very fast in India. And the other plant which we have started last year is in Gujarat. As promised, both the pre engineered building plant in Gujarat will be in play by July this year. And the heavy structure plant also in two phases in July and August. The first phase of that plant will be done. Seeing the growth that is happening in this area. We are also planning the phase two and three which we had earlier planned to do at a later stage of the heavy structures more or less starting one after the other.
So that hopefully by maybe end of next year we have three phases of the heavy structure plant ready in Andhra. Because we are seeing that kind of demand and growth happening in India at a very fast pace and this faster we set out capacity. I think our scope of getting more orders from these kind of clients is far higher. Gujarat will be a PEB plant which will be in two phases. First phase in July, second phase where only the machinery and people have to be order added will be probably by end of this year in a phased manner because of the way we get the people train them and put them into place.
So with the Gujarat plant that will be our fifth fully integrated plant and that will give us capacity of about 2,500 crores in Prenet buildings and heavy structure will add in this year maybe by next March we will have about 40,000 tons. 20 is already going in line by August and 20 more hopefully by March, April next year that will make it 40. And the plan currently is to add it to 60 by next November, December. So that will be another area that we are adding in Gujarat. We have also bought some more land which we could use for heavy structure or for pre engineered building.
We already bought that as we had notified earlier. On the other area, I think we have exports as we had mentioned earlier. Exports are picking up. We’ve got good export orders. We have got good tie up with our partner in Canada who will promote our three unit buildings in Canada and U.S. And other parts of the world where they deal with the same company. We are also planning to set up a joint venture as 100% export unit in India to supply to them what we call open web joist system which is an item which is primarily used in the North American continent.
It is not usable in India. Nobody uses it right now. But there is a great shortage. And our partner there feels that their requirement and what is they can sell in the market. We can certainly set up a plant with a 5050 joint venture. Mou we have signed yesterday it Will take us a few months to formalize that and sort of decide on the process. But I think within a year, by maybe next August, September, hopefully we should have the plant for this. And then in a phased manner we will pick up the sort of production and start exporting it.
The joint venture will be full from production till sale. But our responsibility interact will be the responsibility in India to manufacture the item and ship it out. And the joint venture partner’s responsibility will be to import it and sell it over there or erection if required will be done by them. So exports and that partnership is also as we promised earlier is online now and picking up this JV will be for 100% export. Like I said, heavy structure. We are already now planning that we should go for phase two and three.
So I will just give you a little bit of brief on our growth, our financials for the last quarter and the last year. So I think last quarter we have had a revenue of about 500 crores which is for a full year we have done 1898 crore which is a 30% plus increase from the previous year. We had projected earlier about 1720 crores. Then we raised the projection to 1850 but actually we have managed to achieve 1900, 1898 crore. The capacities that we have are more or less fully utilized. So going forward next year we will also have the Gujarat line and the Andhra.
Second phase of the PEB plant will also be there for the full year. So that will give us the additional sales that we are projecting for 2627 which is also online. I think we have projected 15% but I think we should be somewhere between 2150-2200 crore which is very good and 2500crores for 2728 as projected some years ago. So we are very happy with our results that From a projected 1720 we have managed to do nearly 1900 EBITDA and profitability has been online with the sale. There has not been much drop, a little bit lower EBITDA etc.
Because of certain reasons like because of heavy structures and American exports and Canadian exports. We had to get our company certified for many of the certifications required some professional charges which are the requirement for bidding for heavy steel structure buildings which we had to do in the last one year. Orders will now come in this year and a one time sort of a requirement we had to do for the application of the labor codes. So that has taken away about five to five and a half crore of sort of profitability away from our current profit Otherwise our EBITDA would have been higher than last year.
And so we are very excited and very happy to see that what we projected, we have crossed it and the future projections are online. Our order book is over 1700 crores right now compared to what it was in April, it’s 40, 50 crores higher than what it was last time we declared it. After that, as you know, we have announced another 102 crore order that we have received but that will go into the next quarter. And we are expecting the order flow to remain solid and robust for us to be able to deliver our full capacity.
Because in three unit building we have to go by our capacity to deliver and then only take an order. So I think with an order book of 1700 crore which should be fulfilled in the next nine months, I think we have nearly a full order book as far as we are concerned which means about 550 to 600 crores per quarter we will be executing going forward and hopefully a little bit higher to achieve our target of 2150, 2200 crores going forward. So capacity addition is online, exports are online, heavy structure is online.
All our sales projections, EBITDA projections, profitability projections are all online. Order book is very robust and we are very, very happy to see that. Our plans to increase capacity, whether it is a Gujarat phase two for which we already bought land, heavy structure which we are now planning that the phase two and for next year and the year after, a lot of traction happening in the steel buildings, a lot of customers coming to us and wanting to buy from us in the longer term because these large high rise buildings do require a longer term order book in the last 12 months or so also which is a big improvement.
They come from Africa, from Canada, from Myanmar, you know, from Nairobi. We have got a hospital, a high rise building. We are very happy with what we have done. I think we are well on track. We have got a lot of new clients also in this year. We have got a new solar plant from CESC Green Power. Then we have added a new logistic company, Loda Industrial. We of course deal with indoor space and low boss and a lot of these companies already. Horizon also we are doing a lot of work for Horizon. So we are happy to add Loda Logistics also to our sort of order book.
LNT we are working with them on the project for Hero Scooters which is a EV Suraj buildcon. We are doing a project for them, Luxor writing. We are doing another project for them for Campa Cola India Autotech, Avalz India, New Order Craftsman Automation, our existing client. We are doing a lot of business with them. So the way forward looks very good. The figures as you have seen. I think if I were to take take you through the figures. I think we are saying that quarter three to quarter four the growth has been 8.7%.
And maybe that has led to a little disappointment. But we had mentioned this last time that we have already achieved full capacity in the third quarter much faster than we expected. So the fourth quarter will be not higher as usual before. So we had predicted we had lesser turnover. But I think we have still achieved an 8.7% growth for the quarter and a 30.6% growth for the whole year. Private sector is growing very fast as far as we are concerned. A lot of foreign companies coming in which automatically prefer companies like us.
Private investment, semiconductor plants, data centers are numerous. Renewables are being greatly encouraged by the government. Semiconductor again greatly encouraged by the government. As you know, we have already been involved in the semiconductor plant in Tanang for Micron and for Tata Electronics and Assam. And I think many more are going to come up. So I think we are well on our track to achieve our projection targets. We might revise them after the second quarter once the restructure plants are in play.
But that we will only do once they are actually in play and we are delivering and we see what the market is like. Revenue has grown. EBITDA for the quarter is 53 crores instead of in place of 49 in the earlier quarter. EBITDA margin remains at 10.5 after even these adjustments. Like I mentioned the labor code and these professional charges that we had to pay for export certification as well as the high rise engineering which we had to outsource. The Total revenue for FY26 is 1898 crore compared to 1453.
A growth of 31%. EBITDA 176 from 136. 29% growth, very healthy EBITDA margin steady at 9.3 in spite of these provisions that we had to make and the extra costs we had to incur profit after tax 135 instead of 108. A 25% growth because a little bit extra tax we had to pay because in the earlier year we had paid about 10 crores in gratuity which was outstanding. Therefore we got a tax concession on that. This year of course it was not there. So tax has become a little bit higher compared to earlier year.
And also we have changed our tax system a little bit. So that has resulted in a 3 to 4 crore tax increase for this year, EBITDA has increased. As I mentioned, margin is the same. Profit after tax is 135 instead of 108. And the directors have recommended a final dividend as of last year, 12 and a half, 125% of the share value. I think balance questions can come and we will try to answer and cover more points as we go on. Thank you very much. I think we can move on to the questions.
Questions and Answers:
Operator
Thank you very much. We will now begin with a question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants. You are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question to assemble. A reminder to all. You may press star N1 to ask a question. We will take the first question from the line of Shubhankar Gupta from Equity Capital.
Please go ahead.
Shubhankar Gupta
Hello. Am I audible?
Arvind Nanda
Yes.
Operator
Yes sir, you’re audible.
Shubhankar Gupta
Yeah. Hi sir. So first question is around. So one of our competitors who also declared results recently mentioned that steel prices have increased substantially in Q4 due to MIT increases and they have faced major disruption with two or three out of their suppliers shutting down in March. So what is Interaf’s steel supply concentration and did you also face similar disruptions is part one of this question.
Arvind Nanda
Steel company did have a lot of disruption. They had a lot of export orders and they had some disruption in maintenance of the plants. And because of earlier very low prices in the previous quarter, a lot of them had shut down their lines rather than run them at a loss. But you know, Interact has had very old relationships with these companies, whether it is Steel Authority, whether it’s jsw, whether it is amns. So these kind of relationships that we have developed over last 25, 26 years come in handy when these issues come up.
So we didn’t face any disruption. There were some minor disruptions but didn’t affect any of our projects as you can even make out from our tails. The little minor disruption that we suffered was more in March when there was a little bit of LPG crisis and a lot of the workers left. So the site clearances didn’t come as fast as we expected. But otherwise there was no disruption as far as steel supplies or steel prices are concerned, as far as we are concerned.
Shubhankar Gupta
Okay, got it sir. So actually second question was a kind of a build up to this only, right? So you said that we suffered because of LPG crisis and workers leaving. Right. Like of course this does not have a, you know, clear correlation with sites not getting clearances. So just want to understand like I think we are not very off from the same target which we had in mind. Right. I think the results are fairly good in my view. So like what has led to the sales being like tad bit low other than if you can allocate probably the top two or three reasons, the pack being low, the sales being a tad bit like it is not very low.
89% is still a good number. But like I think expectation like last
Arvind Nanda
Time we had mentioned that we had. See the question is really of having a capacity to deliver the orders. Normally in a year as we build capacity naturally every quarter becomes higher, you know, second, third. But in the third quarter we had done a very good sales because we had utilized our capacity very well. And so we had actually said in the last investor call that the fourth quarter will be very similar to the third quarter because the capacity which we have and what we can deliver is that only.
So the growth which we normally have in fourth quarter compared to third quarter didn’t happen because the third quarter was better, not because the fourth quarter was bad.
Shubhankar Gupta
Got it, got it, got it sir. And so given that we not faced many disruptions so far on this front, right from the West Asia war, is it something like going forward also we should be ideally not very impacted. Is that something which we can say right now or there is lack of visibility
Arvind Nanda
From steel point of view? No, I don’t think we have any predicted impact. When we deal with, like I said, all the five or six majors that we have in India and we deal with everybody, public sector as well as private sector and have excellent relationship with all of them. So you know, if individual company does have a periodic or that month it has a problem. It doesn’t impact us because the other companies have naturally as a company to protect ourselves, we then try to have informal long term arrangements with them. Look, we will give you X quantity every month and you hold the price or while officially they can’t do it, but they do give us because we have been a regular buyer. So I mean if I have a visibility for next three to four months, I feel the prices will move down as they always do during monsoons. From May, June they start moving downward. So when the prices are going to move down, I think the disruption to supply has also been covered because a lot of the lines of these companies have come up disruption. I don’t see Any problem going forward? Prices also I feel a little softening going forward.
But as it is always in a cycle is nothing new. I don’t see any disruption in steel at all.
Shubhankar Gupta
That’s fair. And I think my question was more to do with the current like sort of smaller issues we had like workers leaving. Are we seeing workers migrating back again? That’s one. And
Arvind Nanda
See it was a multiple factor. Elections were also happening and a lot of people got scared of that sir, their vote getting deleted, you know. So that was a multiple thing. But yeah of course now they are coming back and you know the clearances are there and the sales have started and all the sites have started working full steam. So that that way I think by first week of May we were pretty well covered. I think end of April election got over and Bengal is of course a big supplier of labor for the sites.
So that started coming in by first week of May and I think today we would say that we are pretty much back to normal.
Shubhankar Gupta
Got it. So I’ll ask a quick second question as well sir. So you mentioned that we are progressing well on the non industrial bit. But from the PPDI gauge that the industrial segment of our order book has gone of the total sales have gone from 77% to 87% in FY26. Right. So I just want to understand a little deeper on how well the non industrial space is coming along.
Arvind Nanda
See non industrial in our case lot depends on the. That is why we wanted to set up the heavy structure plant because non industrial segment always takes a major chunk of the structure. Heavy structure. So I think going forward you will see an improvement. Some of the orders we have started getting now including this 102 crore order which we announced just two, three days ago. These are more of non industrial buildings but non industrial buildings go hand in hand with our heavy structure plant also being in play.
So while we are seeing a lot of traction on that, a lot of demand coming up on that area. But we were really careful of taking orders because till the plant is there we are not able to deliver. But we are seeing a very large traction in the non industrial segment in which we also take data centers for example high rise commercial buildings for example. This order that we have got recently is for the, you know one of these government buildings on Rajpath in Delhi where all these government buildings are changing.
So they were always in steel but we were never going able to take it because our plant was not there. So now the order that we have got because our plant will be in operation by July and this supply starts only in September. So we have taken the order. But we are seeing a lot of traction on that. But you will see it in the future.
Shubhankar Gupta
Except data centers, high risk commercials on the non industrial where there is good traction.
Arvind Nanda
Yes, very good.
Shubhankar Gupta
All right, perfect. Thank you.
Arvind Nanda
Thank you.
Operator
Thank you. Before we take the next question, ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participants in the question queue, we request you to kindly limit your questions to two poll participants. If you have a follow up question, please rejoin the queue. Again we will take the next question from the line of Rahul Kumar from Valkaria Fund. Please go ahead.
Rahul Kumar
Yeah, hi. You mentioned about, you know, some revenue loss because of the site not being clear. So would you able to quantify how much, how much you lose during this quarter?
Arvind Nanda
Very little, I think. I would say 25, maybe 20, 25 crores. You know, See sometimes we only hold it. So the sites are ongoing. So if the utilizations are not very high at the site because of the things. So we only hold back a little bit so that the material doesn’t get spoiled at site. We wanted to get there. So it was very little, it was not substantial. But because everybody was asking what was the challenge that you faced? That is why I mentioned it. Otherwise it is negligible in the whole sense, you know.
Rahul Kumar
Okay. And in terms of demand environment at this point of time, do you see any, you know, adverse environment versus let’s say what it was three months back and if you can also help us, you know, the build pipeline which you used to mention the calls, what is it now versus what was it? Three, three months back.
Arvind Nanda
Sorry, I didn’t get that. Big buy,
Rahul Kumar
Big pipeline. I think you mentioned you have a pipeline.
Arvind Nanda
Yeah, See we are not seeing any lower growth. In fact we are still fighting to build up capacity faster because we can’t take orders which we can’t deliver. And there is still more in the market that we could take if we had the capacity to deliver. That’s why we are trying to add capacity faster. We are not seeing any slowdown, at least as far as Interac is concerned. We are not seeing any slowdown from our sort of customers or would be customers. Pipeline is growing. I think I would say that today what we normally say.
Pipeline one would be about 7 to 800 crores where orders would get finalized within the next 60 days. That would be approximately 8 to 900 crores currently. So those are very serious, serious stage. And Pipeline 2 where we have already Bid for jobs and we think it will be between two months to six, seven months decision. That would be what sells about three and a half thousand crores. So the pipeline is very tight. And because don’t forget that all these pipelines I’m talking about are jobs which are jobs which we’ve estimated, calculated and bid for them.
So it is not just a inquiry we have got. So we don’t see any change. In fact, as we get into more in the heavy structure segment and more into these non industrial building, we are seeing that the pipeline is only getting bigger. Right now. We don’t see any adverse effect.
Rahul Kumar
And this last question, given the sharp increase in the steel prices, do you see any margin pressure at least in the short term?
Arvind Nanda
Steel prices are always very cyclical. You know, over a year they will come back to where they were. Now in some quarters they go up a little bit more than they should have. In some quarters they come down a little bit more than they should have. But otherwise they are pretty cyclical. And because we are not forced to take the order at one steel price, we can keep a daily check if the steel prices are going up. So like any other raw material, we have to manage the prices, you know, so we, if suddenly something happens, it’s a little different.
But normally in steel, suddenly something doesn’t happen. You know, it’s pretty predictable going forward that next two, three months like February, March, April, prices went up, which they always do every year, but they were a little bit more than normal going up. So I suppose now they’ll stabilize and start coming up. But over a period of 12 months we find that it always zeros down to, well, you know, zero. But it’s cyclical. So that peak or that sudden thing which happened after the Ukraine war, that kind of a thing is very unexpected, but doesn’t happen, you know.
So right now that’s not the case. I think steel prices have moved up, but it’s predictable. In December we knew that January, February, March, when prices always go up, it will be a little bit more than it was previously. Right? Because they had also dropped a lot in October, November, December they were lower than the previous year’s low. So I think it’s more of a managing thing rather than the steel prices only don’t go one way and neither do my prices are not fixed at one rate. And saying that whatever may happen in the steel market, I have to not increase my price because I’m bidding all the time.
So when I’m bidding all the time, then I’m Bidding at the prices that I expect to be there when I buy the steel for that job. So that is a part of my management. If I am bidding today, let us say I know that if the order comes by end of May I will not be able to buy this material before July. So I have to have a prediction talking to steel companies, everybody. Okay, what whether the steel prices will be higher, lower or same and then I bid accordingly. The steel prices are very much like a managing of raw material like for anybody else.
I don’t think there’s any difference between our industry and other industries in that sense.
Rahul Kumar
Okay. Okay. Thank you.
Arvind Nanda
Thank you.
Operator
Thank you. We will take the next question from the line of Sudeep Bora from Ambit Capital Private limited. Please go ahead.
Sudeep Bora
In terms of metric terms for Q4, how much volumes did we do?
Arvind Nanda
How much volume did we do? I think. Mr. Do you have the figure?
Pushpendra Kumar Bansal
41,000 Q4 sir.
Arvind Nanda
41,000.
Pushpendra Kumar Bansal
Yes.
Arvind Nanda
Okay. Compared to. Okay.
Sudeep Bora
And like how much would be the capacity utilization like for this quarter? Q4?
Arvind Nanda
See our total capacity right now utilizable with four full plants, Andhra coming in later in the year but fully working in the, in the January to March quarter is about 160,000 ton, you know, plus a little bit up and down and also we use a little bit outside. So I would say our capacity would be 180,000 tons and we are currently doing about 40,000 tons of water and it will gradually move up. So currently I would say our capacity to supply buildings would be about 180,000 tons a year. But with Gujarat coming in I think it will go up a bit.
Sudeep Bora
Okay, got it. And my next question was on the, on the working capital side so, so your cash flow from operations have done negative for this particular year. So like are we experiencing any kind of difficulties in working capital receivables getting stretched on account of the geopolitics or whatever reasons?
Arvind Nanda
Geopolitics doesn’t affect us so much because we are all working in India only. We don’t really do much, very little outside. So see what happens is that in our business as we get larger we do take a lot of larger orders. But today we could be doing maybe five, seven orders which are 100 crore plus, you know. So in those orders the payments are little milestone driven unlike small and medium orders where we are payments are much faster say with Tata projects or with Excite or with the larger area, larger project they are little milestone driven.
So as we get into larger project values our debtors tend to go up because a lot of the dues will come. But they are, they are like, you know, platinum clients. So they will be like Tata projects, excite, you know your, these Micron agras. So they are, I mean the clients are very safe. We don’t have any bad debt as you have noticed, even in the last two, three years if you notice. But the debtors tend to go up whenever we do these larger orders. So now the only way you can grow faster after a certain amount.
Once we are doing 1200 crores a year we had one or two large orders. Now in 2000 crores we have five or seven large orders. So the debtors tend to go up but they are 100% safe. That is an issue, but not because of geopolitical or not because of any strain or stress from the client side. Second is that also our stocks have gone up primarily not as a percentage so much of this thing, but we have built them up because the price rise in January, February, March was expected to move up a little bit till maybe May, it’ll flatten out.
So we did buy some extra material to be able to cover that price increase by safeguarding ourselves. So both these things actually cause a little bit of stress on the cash flow. But I think it will come back to normal pretty fast. No stress.
Sudeep Bora
Right. Thank you sir. The next question is on the margins front. So basically like the export orders that we are talking about. So are they better in margins as compared to the local domestic orders or is it in line?
Arvind Nanda
What we have seen is that the orders which we get from more competitive countries like Africa, Myanmar, nearby countries that we have got, they are pretty competitive but you know, the costs are less because we don’t have to do any erection. Our payments come against LC or against advance so that therefore less risk. But the margins I would say are pretty similar to what we make in India. For these competitive markets the better margin will come from the North American market. There the margins are better and again the risk is less because we are neither selling nor marketing nor doing the erection over there.
And the payments are either advanced or against lc. So I would say that as we build up more and more in the North American market that will give us extra margin in the exports. But the nearby markets like Africa and neighboring countries, et cetera are pretty competitive. But it is not less than the Indian market. But the risk is less. And I think that way you might land up making a higher gross margin in these orders. But our pricing is based on very similar to Indian pricing for these countries.
North America is a higher margin.
Sudeep Bora
Sure. Thank you sir.
Operator
Thank you. We will take the next question from the line of Dhirendra Kumar Patro from Spark pms. Please go ahead.
Dhirendra Kumar Patro
Hello sir. Am I audible.
Arvind Nanda
Little bit louder.
Operator
Sorry to interrupt the screen. Can you go on, give your handset mode, I’ll speak.
Dhirendra Kumar Patro
Yeah, just a minute. Yeah, so my question was on the tax side. So you said that tax rate for Q4 was a bit higher because of some tax calculation change that we have done. Can you elaborate on that? Will that be a new normal or will it come down to normal of 25% going forward?
Arvind Nanda
I will let my. I think there is some extra tax because like I said, we had earlier paid gratuity this year we haven’t paid. But there’s also some change in section 145A as I’ve got a note which means that if inventory keeps going up every year we were paying a little bit extra tax. So we have decided to change that method to not take that into account. But in that case we have lost about 3 crores of tax that we had already paid earlier. But going forward it will be back to normal. So Instead of the 25% tax as we should have paid or 24% we paid last year, I think it went up to about 27.
Am I right, Mr. Bunsen?
Pushpendra Kumar Bansal
Yes, sir.
Arvind Nanda
But it’s only a one time hit that we have taken because we felt that going forward it is much more advantageous for a growing company like ours not to lose that one 1.5 crores every year to take the hit for last three years and then bring it back to normal going forward. So going forward there will be no hit.
Dhirendra Kumar Patro
Okay, so my second question would be on the guidance side you have guided for 25 crores of 2500 crores of revenue for FY28 is that including the HSS segment,
Arvind Nanda
You know, see HSS segment we were not going to give a very major figure in anything because till we get into the market, until we start selling, until we see, you know, the like they say the taste of the pudding is in the eating. So we can plan whatever we want. But since it’s a little newer, we have assumed that the HSS that we do will be a part of that. But I think we will have a much better idea by let’s say the third quarter or the fourth quarter of this year. By that time we would be in the market.
We will have the capacity, we’ll be selling that. How much does it add to our turnover? Otherwise what we had given earlier two years ago was without heavy structures. But let us see how much heavy structure we can add and change our guidance. But I think it would take us till end of the year to come to sort of a conclusion on that.
Dhirendra Kumar Patro
Yeah, those are my two questions. Thank you.
Arvind Nanda
Thank you.
Operator
Thank you. We will take the next question from the line of Nikhil Purohit from Fident Asset Management. Please go ahead.
Nikhil Purohit
Hi. Thanks for the opportunity. Am I audible?
Arvind Nanda
Yes.
Nikhil Purohit
Yeah. So firstly for the Gujarat plant, we earlier expected it to come by FY26. Then we delayed it to phase one. The phase the 1st of April or May. Now we’re seeing it. It will come in July. I mean why the delay again? And are we on track for phase two? Earlier we had said September, October. Are there any delays here as well?
Arvind Nanda
See, the plant is coming phase one and phase two. The full building is coming up together. Just the machinery. We will phase it out. The basic delay was in the beginning there was some problem and we started doing the foundation. We realized that the water level is very high there. So we had to change all our foundation drawing. And that in that we lost about a month, month and a half. Otherwise there was no other reason. The building is up. The machinery will start getting delivered this month.
And normally we say about a month or two to get into commercial production because of the people. But otherwise we have started hiring people. The machinery will start getting installed by I would say first half of June. Trial production will start in June and commercial production by July. We are very much on track. Except that we lost that one month in the beginning. And the phase two. As long as we have got the people, the phase two can start. Because the building is the longest lead time. So this time we made the building complete for phase one and two.
You know, building electrical cranes, everything is done for both the phases. Only the machine needs to be added as soon as the first phase is in production.
Nikhil Purohit
Got it, sir. Got it. Okay. So earlier you had also indicated that you’ve not included any heavier seal structure revenue in the 15% guidance for FY27. And you would revise this once. There’s more clarity on AP Phase one coming on. Since we are pretty close now, could you throw some more light on what kind of contribution can happen this year or in FY28.
Arvind Nanda
You see, if everything goes in order, I think this year we should be able to sell about 10 to 12,000 tonnes. Because the production will happen in July. By the time we get into commercial production supply 10,12,000 crores could add at 120130 crore to the business. But I would only like to commit once the plant is into production. Maybe by our next investor call I’ll have a clearer picture. And if it keeps going well then ultimately the plant capacity is 18 to 20,000 tons. So in a full year it should add 200, 210 crore to our sales.
But I think the actual figures and commitment I would like to give once we have started selling heavy structures.
Nikhil Purohit
So this is in terms of revenue potential, right?
Arvind Nanda
Yeah. Yeah.
Nikhil Purohit
Okay. So any. So on the same topic, any Update on the 6th PV plant, the Gujarat land that we talked about in last quarter we were exploring a Q And just to understand in case this comes on our peak revenue capacity will go to around 3500 crores right from the planned. 3000 crores.
Arvind Nanda
Yeah. With the. That means six peb plants. We have bought the land recently for the second peb plant if we want to have it. We bought the land last month next to our existing land and about 500 crores had two phases of pre minute of heavy structures. If we get two phases on by next say August, September, July, August. So that will give us a capacity of 3000 crores for pre engineered building and 500 crores for heavy structures. But probably by 2728 end we should have that.
Nikhil Purohit
Got it. And the QIP for this. Any update on this?
Arvind Nanda
We are going to raise funds. As we said, we are exploring. While we did take approval for qip, we are exploring as to what is the best way to raise the funds when we require it. But yes, we will be raising fund primarily for heavy structure plant and a little bit for the new Gujarat plant but primarily for the heavy structure plant that we need to speed enough. So phase two and three we want to speed up that. So I think timelines would be maybe in the next two or three months we will finalize the fundraising.
Nikhil Purohit
Okay, just, just last question from mine. With 41000 tons for this quarter, our realizations have increased to about 1 lakh 20 to 23 000. Yeah. Am I, am I right there?
Arvind Nanda
Yes, about. So for FY.
Nikhil Purohit
Yeah. So for FY27 where do we see these sustaining at? If you could throw some light there.
Arvind Nanda
Yeah.
Nikhil Purohit
Yeah. Please go on. Please go. Sorry.
Arvind Nanda
No ma’. Am. Tell me
Nikhil Purohit
The EBITDA per kg for the heavier stream structure as well. Are they in a similar range or just this. Some light on these two topics. Yeah.
Arvind Nanda
See the beta on the heavier structure is very much similar in that sense because it’s a structure which we sell probably the costs are less. So hopefully we should make a better margin on that. Even though we are aiming for the gross margin to be similar to the structures on peb. But again that’s hope and we will see what happens in reality. Because the selling and marketing expenses don’t go up with the same team as selling the product. A lot of the design part is done by the customer not by us.
So there’s a bit of saving on that. And erection and the sale price is on a completely pass through basis. In this business you get a delta and the steel price variation into the customer’s account. So therefore we might land up making a little better net margin. But aim is to make the similar EBITDA going forward on the heavy structure also. And I think realization. The realization I think right Now I think 120 rupees a kilogram is the realization on PEB which I think over a period of one year will remain the same.
Last quarter was a little higher in price. It might come down by four or five rupees in the next quarter or next when the prices go down. But average we have seen 120 rupees per year per kilogram is a pretty standard pre minute building. But in any structure because it’s only the structure we are selling. Therefore the price remains around about 995 to 100 rupees a kilogram. It is 1520 rupees less because we are not supplying any secondaries or any roofing cladding in that spending
Nikhil Purohit
But less cost.
Arvind Nanda
Yes, yes.
Nikhil Purohit
Got it sir. Thank you so much.
Operator
Thank you. We will take the next question from the line of the banker best from CBB in. Please go ahead.
Deepankar Singh Bisht
Thank you for the opportunity sir. As the company order book stands at 1700 crore as of April 26th with the exhibition timeline of 9 months as we have told. So can you provide the split between the PEB and the new structure segment in that.
Arvind Nanda
In this I would say it’s all peb. In fact the first heavy structure order we got was after that which we just announced the 102crore order but. And we have got some more orders in the pipeline to heavy structure. But this is primarily pep.
Deepankar Singh Bisht
Okay sir. So then second question. Like you have mentioned that we can see the growth of 4% in the revenue and the company is already looking for an expansion of 72,000 metric 10. So what kind of margin can we expect in FY20 savings?
Arvind Nanda
See we are right now giving the same that you know whatever we are making I think we will make because you know, in a growing company the operational leverage should be there. But it is a little bit defeated because there are a lot of new items like heavy structures and exports which add more to the expense in the beginning till they take off. So we are basically saying that whatever margin we are making currently that margin we should maintain. That is representative. Yeah. Net.
Deepankar Singh Bisht
Okay.
Arvind Nanda
I don’t know but sorry,
Deepankar Singh Bisht
The last question that I had. So you have mentioned that the margins in North America was much higher. So what was the contribution from there in Q4 and FY26?
Arvind Nanda
No, there is no American business in Q4. We have just got the orders this month and last month and now we will be exporting to North America. Otherwise very small. 1 crore, 2 crore. So now the export business has picked up. We’ve got two good orders from Canada going forward and the tie up that we have made with this er steel for exports. Now they will bid jointly with us for a lot of the project in PEBs that they will do there. We are expecting a good pickup in the orders going forward. Till now it was a little bit of experimentation and building up stage.
But now then the orders, two orders have come and we are hoping that good orders will come in the coming year from the North American continent. The JV will of course take a year, year and a half to come into play for the 100% export to North America.
Deepankar Singh Bisht
Okay sir, thank you. That’s all for my.
Arvind Nanda
Thank you.
Operator
Thank you. We will take the next question from the line of Nikhil Gupta from Vayu Capital [Phonetic]. Please go ahead.
Nikhil Gupta
Thank you for the opportunity. Yeah, I hope I am loud and clear.
Arvind Nanda
Yes.
Operator
Yes.
Nikhil Gupta
My question is on beta margins. I think last in the last con call you also echo the fact that the type of complex work we do, right. And it’s very, very complex. And 10% EBITDA margins for that type of work doesn’t make much sense. And so what do you. I just want to know your perspective on that. So we are already constrained by the capacity, right? So, so right now we are building capacity. A couple of years later we will be again constrained by the capacity, right?
So do you think let’s say for the 100k order if we just bid 3% higher, I’m not sure like I know there is competition but these orders are very complex. The, the profile is also better. Everything matters right here you already mentioned the quality of. So do you think they should sustain going forward as well or do you see some change? Like some. Something should happen to change the beta? Najit.
Arvind Nanda
See I think the EBITDA margin should change for the better. There is no doubt as we see, we are also moving up in the say value chain where we are dealing with the larger players where their requirement is more of quality and delivery and schedule rather than just price. Because clean unit building is not a very large part of their capex in that sense, but a very essential part of their capex to be able to deliver. But I think we have to also see that we build up capacity. We also have to see how much in house production productivity increase we can do, how much better our purchasing can be as we become a bigger player, that there’s a lot of sort of cost saving, improvement in productivity that we should be able to do in house, including whether it is wastage or scrap or productivity improvements or automation which we are trying to do.
So there is in house saving. As we get little bigger, we will have a little bit more strength in negotiating with our partners also on the supply side and also I think a little better on the larger order when we go to deal with the customers. So I think the chances of being on the upside is very high that we should grow and that is the target. I mean nine, nine and a half, 10% I don’t think is a very good margin for a company which does all that we do. But I think it is a race and a struggle that we have to cope up and go gradually, step by step, but with a very clear vision that yes, we should be able to increase our margin, we should be able to save cost.
We need to get to better customers who see more value in our interop and our product make, make sure that the delivery and the customer satisfaction is also very high so that they are able to pay you 1 or 2% more. You can also have savings. But also you must remember that in case of a growing company, a lot of the expenses in premium and building and heavy structure and exports are being made at a time when there is no income from them. And that will keep happening as we grow. When we are not growing, 1 or 2% can come by operational leverage also.
So right now like last year we have spent, you know, three and a half crores on labor code sort of provision. The government wanted us to have it or auditors wanted us to have it. Then we have spent about 2 1/2 crores on certifications for American market for 1 1.5 crores or maybe more for bidding for high rise jobs which we have got no orders in the last year. So these costs like 5, 6 crore and of course there Are hidden costs everywhere because everybody is trying to promote this. So there are these hidden costs which come up before the revenue from that area comes in.
So I think there are 9.5% EBITDA margin or 10% which we hope that we will achieve. I think it’s a very good margin if we can sustain it. Because already we are spending money on building up the future business also and capacity. We love to constantly build up. I think we’ll have to do a new engineered building plant every year. But every year if I want to grow by 4 or 500 crores, I have to build a new engineered building plant every year. So I think all these things taken into consideration. But no doubt what you are saying and what we also want is a better margin going forward from our clients.
But this will happen once we move up the value chain. We become more perfect in delivery. The client feels that yes, it is worthwhile paying us more. You know, right now a lot of people are adding capacity. A lot of people don’t see the difference between one player and the other, just accept the price. So that also gets clarified as you move on. A lot of people realize that paying a lower price was not a great idea. You know, when your delivery don’t come or quality doesn’t happen. But this is a struggle, It’s a constant struggle to make it happen in India.
But I think there are now enough value based clients in India. Certainly with a lot of these foreign companies coming in and microchips and lithium battery and data centers who are more centered around what they are getting. Are they getting it in time? They’re getting it in quality. Their other cost of not of late delivery or not getting in time is very high. Let’s say a commercial building, if it gets delayed by a few months, the renters or the sale or data center, you can imagine. I think we are moving up the value chain and a lot depends on us.
How we go forward, how we create more capacities, how we can bid for larger projects. Right now a lot of the large projects get divided between two or three players because the client feels that one person cannot do it, one party cannot do it. I think a lot depends on us. But the scope is tremendous. Going forward. The move towards steel building will keep moving irrespective of the global situation. I think there’s a huge market in India. There’s a huge market which is moving towards steel and pre engineered and prefabricated steel.
I think the scope is definitely there. I can’t make any promises because you know, I have to deal in the real market on a day to day basis, I have to run the company as well. But that is the aim. That is the aim and we are always gearing towards that. Give better companies, get better relationships, build up the in house capacities of engineering, design, project delivery we have. The customer will be okay giving you a higher margin. We have to show it here. I don’t think there’s a question about it.
Nikhil Gupta
If the customer is already ready to give us higher margin and we see that we are the only player, we should definitely bid for higher margins. We should not, of course.
Arvind Nanda
No, no, we always start at a higher. I mean it’s not that we ask for a lower price. If we don’t ask, we will never get. So we always ask higher and that is how we move up the value chain, You know, so we are constantly doing that. But like I said that we also try and go and look for high value customers will appreciate companies like us. That also doesn’t end, you know. So both cases we do that. More companies we will find the more bigger our pipeline will be, the better our choice will be. We can lose some orders which are not so giving us a better margin and go for the better margin orders if our pipeline is bigger. So we are working at all angles, including internal cost, including improving internal productivity and cost as well.
Certainly we aim, our aim is always to get a much higher margin. We don’t aim for 10%, we aim for much higher. But yeah, in the end, overall that is what we are left with. But constant aim is to aim higher.
Nikhil Gupta
Thank you for the detailed answer. My last question would be, have we explored humanoid robots in our plants just to increase efficiency and do some additional automations which other players are not doing?
Arvind Nanda
Yes, we are seriously looking at robotics especially for welding with speed and arc and the work and the quality. And also it’s a very highly trained job. So in the heavy structure plant we have imported most of our machinery from Germany and Italy compared to pre unit building plant machinery which was coming from India or in some cases China because they are highly automated. But for all our plants now, in fact, I don’t know whether you already knew or not. Your question is very apt because last three, four months we are looking at a lot of companies to do robotics and automation at a very high level.
In all our operation going forward, that is the only way we will improve our productivity, get better productivity out of people. So automation is definitely on our anvil going forward.
Nikhil Gupta
Yeah. Thank you so much for detailing. Thank you.
Operator
Thank you. We will take the next question from the line of Vedant Sarda from Nirmal Bank Securities Private Limited. Please go ahead.
Vedant Sarda
Hello. Am I audible?
Arvind Nanda
Yes.
Vedant Sarda
Thank you for the opportunity, sir. Congratulations for a good year. So I listen to your answer about managing inventory. So the point is well taken that there is a good management from your end. But like steel prices have went up steep as you said. So how it will impact us? How, how should we as an investor look at it?
Arvind Nanda
Steel prices. The steel prices, what we have seen is a little cyclical. You know, in December, January, February, March, they always go up. April, May, June, they are pretty flat, starting moving downward. July, August, September, October, they are coming down. November, they are again flat. And this is how the cycle keeps moving. Last year the cycle moved down a little bit extra in October, November, December and moved up a little higher in January, February, March than comparatively. But otherwise this is a cycle.
So at the end of the year or end of the cycle, we are back to square one. So when we do take orders, we do take a certain element in our costing depending on when the orders will get executed. So when we are bidding, we take that into consideration. We don’t have an automatic formula that just price everything at 60 rupees or 70 rupees. No, we price every job as a unique individual job where we see what are the materials required, when will we have to buy this material, what are the likely prices, what are the average price that we should take for this job, what will be average freight price.
So each job is uniquely priced by us. There is no automatic pricing in our case.
Vedant Sarda
Okay, so we can expect a 10% EBITDA margin in Q1 also.
Arvind Nanda
Yeah, I think, you know, I, I think what we have got a 9.3% margin that we should have. You know, sometimes it can become 9.2, the other next quarter can become 9.4. In our business we have seen that while quarterly is very important for the investor, but we look at it more like an annual over a period of one year because sometimes when monsoons come and they are very bad and the sales drop because sites are not cleared. Sometimes the sites you are running, there’s not that much problem in monsoons.
So we try to look at it on overall annual basis. But yes, it could drop by 0.1, 0.2, then it will go up by 0.12 in the next quarter. So average, I think it remains at this 9.3, 9.4. For the last two years, I think we’ve had very similar. I, I would be more easy to give an Answer on an annual basis rather than every month or every quarter but on an annual basis I think we would be pretty much around this figure.
Vedant Sarda
Okay, thank you for the clear explanation, sir. And can you just tell your order book as on the 30th of April 2026.
Arvind Nanda
1700 Crores. Yeah.
Vedant Sarda
As of the 30th of April 2026 is 1700.
Arvind Nanda
Yes.
Vedant Sarda
So we.
Arvind Nanda
About nine Months. Yeah.
Vedant Sarda
So as compared to previous year it is. It has increased 3.2% by 1. Can you.
Arvind Nanda
But compared I think it was 1650 or something or you see the order book is moving up as per capacity and our delivery capacity that what do the customers want? And we take an order so that we have to deliver it. Also 8, 9 months is still a very long delivery even in pre unit buildings. But because we are doing some large orders therefore we have that kind of time. So I think as the capacities move up, our order book intake moves up. The market is not an issue. I think the issue is not that there are no orders in the market.
The issue is more we have to take what we can deliver. So that is how we figure that trying the ability to get the ability to take more orders as we build up the capacity to deliver.
Vedant Sarda
Okay, thank you so much.
Operator
Thank you. We will take the next question from the line of Avnish Tiwari from Vaikaria. Please go ahead. Arnish, please proceed with the question.
Avnish Tiwari
Hi, my question was regarding order booking. Did I get it correct that your order booking has been sort of in a range bound manner because of the capacity constraint you are and as you get new capacity online then the demand conditions or you are quite conducive to increase your order flow.
Arvind Nanda
Yes, absolutely.
Avnish Tiwari
And second part I understood that this whole steel price volatility of movement which goes through every year as such this year is slightly more accentuated but not much relation for your margin structure.
You are looking at next year margin?
Arvind Nanda
Yes, like I mentioned earlier, I think it is if we take it over a year. No, that doesn’t make much difference. Sometimes it is too high or too low. In some quarters it can make a difference. You know, depending on which order we are executing or when did we take that order or what price did we take it. But otherwise over a period of 4/4 it all balances out and I think it will be the same this next year also. I don’t see any difference.
Avnish Tiwari
Okay. This can impact the quarter but not necessarily what we see today in terms of price changes. But you don’t. Thank you very much.
Arvind Nanda
Thank you.
Operator
Thank you. We will take the next question from the line of Raghav Maheshwari from Kamaya Kya Wealth Management. Please go ahead.
Raghav Maheswari
Yeah. Hi. Thanks for the opportunity. First of all, congratulations on achieving what you promised to. So my first question, my first question would be around the export revenue that is, you know, starting to pick up with all the MOUs that we have signed right now. Sir, I think the export revenue is around three, three and a half percent as a percentage of total revenue. So by the end of this year, I mean with all the MoUs being signed and every capacity is coming up and you know, it’s order starting to flow.
So what percentage do we aspire by the end of FY27 as a part of total revenue?
Arvind Nanda
FY27, of course the joint venture will not come into play because that is a thing. We have to set up our plant and everything. But export orders, like right now we have got about 30, 35 crores of export orders in hand. So we expect that will be executed this year. So we expect that these orders from other countries also besides North America we should be able to get going forward. If I were to make a very wide guess I would say that our aim should be to get at least 100 crores of orders in export.
That would be our aim. But let us see what happens because these are unknown markets for us. So we can’t predict because this is the first year we have started getting any decent size orders from there. Otherwise they were pretty small. 1 crore, 2 crore, this market, that market. So now we seem to have some kind of a track especially in the North American market which we were trying to build up, that we have a good partner then the reliability of orders and the ability to bid and get orders, you know, together will increase.
So I think we should be aiming for, you know, if we have got already 30, 35 crores of orders I think we should aim that we should at least get 50 to 60 crore of orders more in the coming year. But I think we’ll have more clarity as we go forward because these are very new streams for us. So to be able to. Yeah.
Raghav Maheswari
And the execution timeline of these export orders is also around nine months.
Arvind Nanda
No, no. You see, average of these export orders right now is about a thousand tons. So these orders are more or less finished as soon as we get the approval. I would say between three to four or five months. The orders are executed with the supply. The erection is not in our scope. We have to do the engineering design and manufacture and supply. So I would say Three to five months is the normal period for an export order.
Raghav Maheswari
Perfect, sir. And so my next question is around the ocf like you clearly mentioned that you are now, you know, as you are becoming a bigger business, you are also bidding for bigger projects. Like you recently won a hundred crores order. So sir, because of that, I mean I do understand you have to. And also you had to pile up the inventory because of the rising raw material prices. But sir, like we aspire on growing, you know, year on year, quarter on quarter this growth will keep on coming and we will also obviously go for bigger fishes, bigger orders.
So sir, what was the reason? Reason for this negative ocf. And second, secondly sir, when do we, when do we plan to. When, when will it get stabilized?
Arvind Nanda
I see the real reason when it goes forward is that if suddenly we have more larger orders then the difference from one year to the next is more apparent. But once we have regular larger orders coming in, you see if you look at it, in the last two years we have grown by over 50% if not more from 1200 something to now 1900. So naturally the intake of larger orders is more. So it is more apparent that the debtors have risen. But I think going forward, our idea of course is that we get our payments faster.
We are also learning that okay, if you are doing a large order to get payments not at the convenience of the customer but you have to tighten your payment terms and get the money faster. We are also doing a little bit of a learning in that sense that we must make sure that the orders give us faster cash flows. Stocks should of course come down a little bit as the year goes on. But we are also learning as to how are we going to do these large orders and get the payment faster. But the difference you will see is less.
So I think it should turn positive. I would feel that the reason for being negative I think will change pretty fast. I can’t give a timeline but I think they will change pretty fast. And then the difference will become less and less once we come into the bigger orders being a norm. I think last year we got that 300 crore order we had got last year and some other orders we had got. So that sort of pushed the large order level and the debtor level higher. But I think we should be back into positive space very fast.
Raghav Maheswari
Understood, sir. And sir, just last question. Sir, you talked about ebitda margins being 10.5% this year. And it was because of some one off items like the labor codes revision that you had to make at least Some new certification cost that you had to incur to get those certifications. So adjusting for these one offs, what would have been the EBITDA margins?
Arvind Nanda
We have written 9.3% for this year. I would say maybe see if you say 5 to 6 crores, so maybe 0.25 more. Huh.
Pushpendra Kumar Bansal
Our EBITDA margin could have been 9.7%.
Arvind Nanda
9.7 instead of 9.3. But you know, in a growing company, something or the other will keep happening, I’m sure. Yeah, something else because you have to plan for the future and you have to build some expenses for the future as well in a very fast growing situation. But I’m saying that that is how we can look at it because there are certain direct expenses or something that these are very direct, you know, expenses for which there is no revenue generated at all in that year.
Raghav Maheswari
Yeah, right. And then lastly sir, what hindrances do you see in FY27? Like practically
Arvind Nanda
See the only hindrance when we go forward, like the earlier question which were asked whether it is or whether it is geopolitical or gas or automation. I think the biggest challenge that India will face and then of course everybody will face is the manpower. So I think how well prepared we are to pick up that challenge. Challenge as in shortage? Yeah, I think there will be shortage of people going forward. People ready to work at construction sites will become lesser and lesser as people become most prosperous in their areas, as they are getting more grants, a lot of free rations, free money by sitting at home, I think less people.
So we are trying to make sure that our certified builders are looking after our people better. Give them better money, look after them better at sites, make sure that they have more tools and more equipment to become more productive. So how to improve that? And same in the plant as somebody asked earlier about automation and robotics. So I think that is the way that we can tackle it. We can’t hope that one day it will go away. It won’t go away. So I think the challenge is that how fast, how quickly and how competitively we can change that.
We are very focused on that right now. That is a big focus point for us.
Raghav Maheswari
Right. Thank you so much sir. All the best for FY27. Hope to talk to you very much.
Arvind Nanda
Thank you for your good wishes.
Operator
Thank you. We will take the next question from the line of om Bandarkar from 361 Capital [Phonetic]. Please go ahead.
Om Bhamburkar
I wanted to ask about our one year new order book is not growing.
Arvind Nanda
No. See like I mentioned earlier, our order book has to sort of reflect what we can deliver. Because pre minute building orders are not a long term business. Between four months to nine months in a very long delivery order I have to deliver. So if my average order book is already nine months, I can’t take more orders or increase my order intake unless I have built up more capacity. So 1700, if I am predicting 2150 or 2200 crore max for next year. So my order book is full for that because nobody’s able to give me an order for a 12 month later delivery.
So it is not growing slowly. But our capacity is what we added last year are already being met with the order book that we have. The orders in the market are not in short supply. It’s not that there are no orders available, orders are there. But because we have to deliver. So we have to be careful that we only take orders which we can deliver. As we keep adding to capacity, our ability to take more orders will increase. In the market we are not seeing a problem. I hope that answers your question.
Om Bhamburkar
Okay.
Arvind Nanda
Not satisfied. Okay.
Operator
Thank you very much. We will take the next question from the line of Devang Patik from some extra capital. Please go ahead.
Devang Patel
First question was on the area of MOU that is done. One is the size of our partner in terms of current delivery capability. And secondly the reason for JV because we have taken certifications, they have their own specialization. So it will be able to build up our portfolio of recruitment projects. And what happens to our partnership with Moltech that go into sleep mode.
Arvind Nanda
See, let me start on the end. See Moltech is more of inquiries which we will get from the North America. Not so much Canada but us. So we are getting inquiries through them and getting some hopefully will finalize some few small orders. Also their MoU was more. They get clients for design, engineering and detailing and they will ask them if they have any requirement of the building and they’ll pass them on to us. But the new MOU that we have signed with the Canadian company, that company is in the business of steel buildings already.
So their own financials because they’re a private company are still with. We don’t want to disclose them publicly. But at some point when we have a JV I think we’ll have more figure. But we are a very large player in Canada and more than 20 countries in the world in mining business. So in mining a lot of steel structures are used and in Canada they are also doing a lot of steel pre engineered buildings. So they are a player who are going to use this item for themselves. And also, once they are confident on our engineering design and capabilities, they will also bid with our buildings to other clients.
The joint venture for the other 50, 50 joint venture for manufacturing, 100% export unit, that is a different item. So this company is very well positioned in Canada right now. They want to expand into US with our items and with this joint venture item. But they are very well positioned in Canada to give us good business. They themselves are a reasonably large company spread all over the world doing these kind of steel structures and steel buildings. So we are very hopeful that with them the growth in exports should be quite good going forward.
Devang Patel
And partially, we also benefit from their certifications because we also procured certifications recently.
Arvind Nanda
Sorry, can you repeat that again?
Devang Patel
The certificates to operate in US And Canada market. This is also impacts.
Arvind Nanda
Yes, the US And Canada are very strict about the certification process of the plant from where the manufacturing will happen. So we have to get our plants and our welding processes and fabrication processes certified by their bodies with certified. So nobody can export larger orders to US and Canada till you have those certifications. So that certifications are done by Interact and we have got them done in America. You cannot export just from any plant.
Devang Patel
Okay. And to carry forward the working capital point you made earlier, just like margins can directionally improve as you get larger projects, is there scope to improve working capital with higher advances of payment terms? Directionally, is that improvement possible?
Arvind Nanda
Yeah, yeah, it is. You know, like I said that in the larger project, sometimes the milestones, you know, get delayed. And they are very large companies and, you know, sometimes you cannot argue with them too much if their payments are delayed. But I think we are tightening up the whole process because as you do larger orders, you can’t go into negative cash flows and you cannot go into delays by the customer. So we are also tightening up the processes at the time. We are taking orders to make sure that the payments come faster and the customers do meet their milestones, maybe give higher advances, maybe give more payments against supply rather than more payments against completion.
So we are doing a lot of, you know, sort of taking a lot of actions to ensure that this problem goes away. Because we are going to be doing a lot of large orders and therefore we cannot keep going into negative cash flow. But I think we will improve the situation quite soon. We have taken a lot of quite a few steps in that direction. And our customers, like I said, they are like gold plated customers, but they also understand that it’s a steel building and they need to screen up the payments, et cetera.
So they also understand that. But we have to take the steps to ensure that it happens.
Devang Patel
Lastly, on the heavy structure plan that is coming up, would there be a mix of supply orders and the own contracts that we take up for heavy structure buildings? You earlier mentioned outsourcing the design part for a multi storage building that capabilities in house.
Arvind Nanda
See heavy structures work in two different ways. If the client wants you to design and engineer and then supply then currently we are outsourcing the design for that heavy structure because we don’t have in house capacity capabilities to do it very efficiently. But we are building it up. But if it’s heavy structure where the customers only want the structure, then they give you the design and you only do the detailing which is very simple. I mean it’s much simpler than doing a design estimation.
And what is the quantity to be supplied and what is the weight, etc. Is all based on the customer’s design. We are not responsible for that. So there are two ways that the heavy structure will work and in installation also it could be that the customer will take it. But if it’s a structure of a complete building like it has happened in many cases, then he will also want you to install or install only the structure. The balance is to be done by him because we are not involved in the rest of the building.
But if it’s a very large project where we are supplying part, then chances are that he will do the installation himself. So it’s a little bit of a. Yeah.
Devang Patel
When you are mentioning the pipeline earlier, is the pipeline from data centers and multi high rises, is that increasing?
Arvind Nanda
Some of them but very little. What we are talking about, three, three and a half thousand crores is mainly pre engineered buildings I would say.
Devang Patel
Thank you so much.
Arvind Nanda
Okay, thank you.
Operator
Thank you very much ladies and gentlemen. We will take that as a last question. And with that concludes the question and answer session. I now hand the conference back to the management for the closing comments. Thank you. And over to you sir.
Arvind Nanda
Thank you everybody. Thank you Ambit. Thank you for organizing the meeting for us and I’m very grateful to everybody who joined the conference and I hope I managed to give satisfactory answers to everybody. Thank you sga. If you want any more questions, one to one meetings, site visits, plant visits, SGA or Ambit or us directly you can contact and we’ll be very happy to arrange. Mr. Anil Chandani is always available. So we are open for anything. You know you want to have one to one meetings, zoom calls, site visits, factory visits.
We are always happy to explain our industry, our company, and ensure that you know as much as we do about this business. Thank you again. Thank you very much. Thank you, Ambed. Thank you, sga, for organizing the meeting.
Sudeep Bora
Thank you, everyone. Thank you.
Operator
Thank you, members of the management. On behalf of Amber Capital Private Limited, we conclude this conference. Thank you all for joining with us today. And you may now disconnect your lines. Thank you.