Interarch Building Solutions Stock Gains Brokerage Spotlight

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Driven by strong repeat orders and expansion into EV, semiconductor, and renewable sectors, Interarch reports a 52% YoY revenue surge, improved margins, and sustained demand for pre-engineered steel buildings.

By S JHA

Mumbai, November 10, 2025 — Interarch Building Solutions Ltd reported its strongest-ever quarterly performance in Q2 FY26, with consolidated revenue soaring 52% year-on-year to ₹491 crore, backed by robust project execution and a deep order book, according to a research note by ICICI Direct.

The company’s EBITDA rose 65% YoY to ₹42 crore, with margins expanding by 70 basis points to 8.5%. Profit After Tax (PAT) climbed over 56% to ₹32 crore, reflecting operational efficiency and sustained demand across industrial and infrastructure projects. Interarch also declared a final dividend of ₹12.50 per share for FY25.

Founded in 1983, Interarch is among India’s pioneers in turnkey pre-engineered steel construction, offering integrated design, engineering, fabrication, and project management solutions. The company currently operates five advanced manufacturing facilities and has positioned itself as a key player in high-value, complex steel construction for industrial and commercial buildings.

Market trackers note that Interarch’s order book stands at ₹1,634 crore as of October 31, 2025, with 80–85% of orders coming from repeat customers — including major names such as Room Terminus, Havells India, Techno Electric, and Jindal Stainless. The order book provides revenue visibility for the next several quarters.

In a post on X, LNRP Capitals highlighted Interarch’s “record-high” quarterly revenue and its plans to expand capacity through new plants in Gujarat and Andhra Pradesh, aiming to cross ₹2,000 crore in revenue by FY27. The company has already commissioned Phase 2 of its Andhra Pradesh unit and initiated groundwork for new facilities, taking its total installed capacity to 200,000 metric tons per annum.

The upcoming Gujarat (Khera) plant, strategically located near semiconductor, EV, and electronics clusters, is expected to enhance the company’s footprint in new-age sectors like EVs, semiconductors, renewables, and data centers. A new heavy structure unit in Andhra Pradesh, with a 25,000 MT annual capacity, is also being set up to cater to the power, oil & gas, and railway bridge segments.

Despite significant growth, Interarch’s gross margins remained steady at around 39%, constrained by ongoing investments in technology, capacity expansion, and skilled workforce. The company is investing ₹150 crore over the next 12 months in its new plants and has deployed SAP HANA and AI-based tools to enhance project efficiency.

Looking ahead, management expects mid-term EBITDA margins to reach double digits through better sourcing and operating leverage. Export opportunities are also on the horizon, with shipments expected to begin contributing meaningfully within the next 8–12 months.

Supported by India’s infrastructure push, PLI schemes, and rising adoption of pre-engineered steel buildings (PEBs), Interarch remains confident of sustaining 20% annual growth through FY27–FY28. As India’s industrial construction evolves toward faster, modular steel systems, the company’s integrated model positions it as a front-runner in the nation’s shift to engineered steel infrastructure.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)