Detailed Narrative
Strong Q2 & H1 FY26 Financial Performance
Interarch Building Solutions reported a robust Q2 FY26, with revenue reaching INR491 crores, marking a 52% year-on-year growth. EBITDA for the quarter stood at INR42 crores, up 65% YoY, with an EBITDA margin of 8.5%. Profit After Tax (PAT) also saw significant growth, increasing by 56.2% YoY to INR32 crores. For the first half of FY26, revenue was INR872 crores (up 39% YoY), EBITDA was INR73 crores (up 40% YoY), and PAT was INR61 crores, demonstrating strong operational leverage.
Capacity Expansion and Strategic Footprint Growth
The company achieved a significant milestone by commissioning Phase 2 of its Andhra Pradesh unit, bringing total installed capacity to 200,000 metric tons. This expansion solidifies its leadership in the Pre-Engineered Building (PEB) industry. Additionally, Interarch broke ground on a new facility in Kheda, Gujarat, strategically located to serve the semiconductor, EV, and allied industry clusters. A brand-new unit for heavy steel structures and multi-storey buildings was also initiated in Andhra Pradesh, next to the existing plant, to strengthen its position in the high-rise steel building segment.
Robust Order Book and Repeat Customer Base
As of October 31, 2025, Interarch's order book stood at INR1,634 crores, indicating strong revenue visibility for coming quarters. The company secured new orders worth INR463 crores between August 1st and October 31st. A key highlight is the high percentage of repeat orders, with 80% to 85% of new wins coming from existing customers like Rungta Mines and Havells India, demonstrating strong customer trust and satisfaction and validating the company's capabilities.
Diversification into Heavy Steel Structures and Exports
Interarch is strategically expanding into heavy steel structures, a market segment with higher volumes and different dynamics than PEB. This new vertical, supported by a partnership with JSPL, aims to cater to sectors like power, oil & gas, and railway bridge girders. The company estimates this segment could generate INR250-300 crores in turnover for an investment of INR70-80 crores. Furthermore, Interarch is actively exploring export opportunities, participating in international exhibitions and engaging with Canadian and American companies, expecting serious results in 8-12 months.
Positive Growth Outlook and Margin Improvement Focus
Management expressed confidence in surpassing its initial FY26 revenue growth target of 17.5%, now expecting closer to 20% growth, and aiming for 20% annual growth for the next two years (FY27, FY28). The goal is to achieve INR2,000 crores plus in revenue by FY26/FY27. While EBITDA margins are currently at 8.5%, the company's long-term aim is to reach double-digit margins, driven by higher turnover, operational leverage, larger orders, and internal efficiencies, though this may not be achieved in the current fiscal year due to ongoing investments.
Complex Building Expertise and Industry Agnostic Approach
Interarch differentiates itself by offering complete, comprehensive pre-engineered building solutions, handling design, engineering, manufacturing, and erection. The company emphasizes its capability to execute complex projects for diverse industries, from semiconductor and lithium battery plants to data centers and warehouses. This industry-agnostic approach, coupled with its ability to deliver customized, complex, and large-span buildings, positions Interarch as a capital goods company rather than a simple fabricator, serving a wide range of industrial and non-industrial clients across India.