Interarch secures ₹89 crore data center PEB order

Interarch secured an ₹89 crore domestic order to supply pre-engineered steel structures for a data center. The 10-month project includes a 15% advance, bolstering its ₹1,864 crore order book. The contract leverages Interarch's new 24,000 MT Attivaram heavy steel plant in Andhra Pradesh. This validates its pivot to complex digital infrastructure, complementing Q1 FY27 revenue growth of 20.7% YoY to ₹460 crore and an 8.6% EBITDA margin. I am watching the Q3 FY27 billing conversion of this mandate and sequential order inflows to ensure the total book sustains above ₹2,000 crore. The market prices Interarch as a standard warehouse PEB player, fixated on its flat Q1 FY27 PAT of ₹28.2 crore. What the consensus misses is the structural margin upgrade here. Data centers require high-load, complex frameworks commanding superior pricing power over commoditized industrial sheds. The 15% advance payment also neutralizes the working capital strain typical of EPC execution. By matching this premium demand with new Attivaram capacity, Interarch is actively shifting its revenue mix, setting the stage for multi-quarter ROCE expansion. Accumulate for long-term margin re-rating. Disclosure: I do not hold positions in this stock. This is for educational purposes only and does not constitute investment advice.