Everest Industries pulls ₹125 cr steel plant, second capex cancellation in days
Barely a week after scrapping a ₹138 cr Assam unit, Everest's subsidiary abandons a ₹125 cr Andhra steel plant. The parent lost ₹100 cr last year.
— 2 earlier stories on Everest Industries Ltd. →What's new
- Everest Steel Building withdraws ₹125 cr Andhra plant approved in Feb 2023.
- Decision comes a week after ₹138 cr Assam plant was scrapped.
- Company says no adverse financial impact, but FY26 loss was ₹100 cr.
Why this matters
For a company with a ₹732 cr market cap that just reported a ₹100 cr loss, shelving two large capex projects in a week signals a sharp strategic pivot. It may preserve cash but also raises questions about growth ambitions.
What we're watching
- Whether further capex plans are reviewed or shelved next.
- Management commentary on cash conservation in the next earnings call.
- Impact on the subsidiary—was it already incorporated or just a land allocation?
The full read
Everest Industries has withdrawn from a second large expansion plan in a week. Its wholly-owned subsidiary, Everest Steel Building Private Limited, scrapped a ₹125 crore pre-engineered steel building plant in Ananthpuram, Andhra Pradesh, just days after the parent abandoned a ₹138 crore fibre cement plant in Assam. The decisions come as Everest reported a standalone net loss of ₹100 crore for FY26, with revenue down 21%. While the company says the cancellation has no adverse financial impact, the pattern is clear: a cash-strapped company pulling back from growth. For a ₹732 crore market cap firm with a debt-to-equity of 0.27, these are not trivial decisions. The open question is whether more capex projects will be reviewed.
Questions answered
- Why did Everest cancel the Andhra plant?
- The subsidiary's board reassessed feasibility and decided to withdraw, citing 'business considerations.' The company did not elaborate further.
- How significant is the ₹125 cr investment relative to Everest's size?
- The cancelled capex represents about 17% of Everest's ₹732 cr market cap. It was a sizeable expansion for a company now in loss.
- Does this cancellation affect Everest's financials?
- The company says there is no adverse financial impact. Since the project was still in early stages—land was allocated by APIIC but likely not developed—no major write-off is expected.
- Is this related to the Assam plant cancellation earlier this week?
- Both cancellations happened within 7 days, suggesting a coordinated review of capital expenditure as Everest grapples with a ₹100 cr FY26 loss and falling revenue.
- What happens to the subsidiary Everest Steel Building now?
- ESBPL remains a wholly-owned subsidiary but has no active capex plans. Its future role will likely be reassessed or it may remain dormant.
- What land was involved and who is APIIC?
- APIIC is the Andhra Pradesh Industrial Infrastructure Corporation. The land allocated for the plant is being surrendered back to APIIC.
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All notes on EVERESTIND →- 3 Jul 2026 · 9:35 PM IST Everest Industries pulls ₹125 cr steel plant, second capex cancellation in days
- today Everest Industries scraps ₹138 cr Assam plant amid losses
- 38d ago Everest Industries swings to a ₹100 cr loss as revenue drops 21%