Whalesbook
Everest Industries announced it is delaying the start of its new steel building manufacturing plant in R. Ananthpuram, Andhra Pradesh, until Financial Year 2026-27. The company is working with the Andhra Pradesh Industrial Infrastructure Corporation (APIIDC) to review the project's feasibility and overall scope. This marks a significant adjustment to the expansion plans for its Steel Building Division.
The decision follows a period of financial strain for Everest Industries. The company reported a consolidated revenue drop of 23.74% year-over-year to ₹28,295.34 Lakhs in the third quarter of FY26. It also posted significant PBT losses of ₹4,801.14 Lakhs consolidated and ₹405.97 Lakhs on a standalone basis during the same quarter.
The delay suggests a cautious management strategy, likely influenced by the company's recent financial results and broader market conditions. The review with APIIDC indicates potential changes to the project's size, cost, or setup, intended to better fit current business needs.
This project was initially approved with a capital expenditure of ₹125 crore in February 2023, targeting an operational start by March 31, 2024. Subsequent updates adjusted the timeline, with earlier reports pointing to Q4 FY2025 or Q1 FY2026, and a May 2025 rating update projecting capex over FY2026-FY2028 for operations expected in the near to medium term.
The primary change is the shift of the planned operational start date for the Andhra Pradesh facility to FY 2026-27. The ongoing reassessment with APIIDC suggests potential alterations to the project's scope or execution. This delay could affect Everest Industries' ambitions for growth in the pre-engineered steel building market.
The company faces several challenges. Its financial performance has been weak, marked by significant revenue declines and widening losses. In the third quarter of FY26, standalone revenue fell 26.85% year-over-year to ₹2,688.34 Lakhs, with a standalone PBT loss of ₹405.97 Lakhs.
Leverage remains high, with Total Debt to OPBITDA rising to 8.9 times as of March 2025, partly due to past capital expenditure. The repeated revisions and deferral of the Andhra Pradesh plant signal potential difficulties in project execution. Everest Industries also operates in a competitive pre-engineered steel building (PEB) market against players like Tata BlueScope Steel, Kirby Building Systems, and Zamil Steel Buildings India. A GST show cause notice received in January 2026 adds another layer of regulatory concern.
Investors will be watching for updates on the re-evaluation talks between Everest Industries and APIIDC. Key areas to monitor include confirmation of any revised project scope, timeline, or investment amounts, as well as the company's upcoming financial results and any significant order wins in the PEB sector. Management commentary on future capital expenditure plans and debt reduction strategies will also be important.