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    Interarch Build.

    INTERARCH
    Construction·3 Feb 2026
    Management Summary

    Interarch Building Solutions delivered strong Q3 FY26 results, with revenue and volumes growing over 43% YoY, leading to an upward revision of FY26 revenue guidance to ₹1,900 crores. The company is aggressively expanding capacity, funded by a ₹100 crores QIP, to meet growing demand in niche PEB and heavy structure markets, targeting ₹3,400-3,500 crores in capacity by FY28. Despite a one-time margin impact from new labor codes, Interarch maintains a zero-debt position and healthy liquidity, emphasizing its differentiated product-centric approach and long-standing client relationships.

    Highlights

    5

    • Q3 FY26 revenue at ₹522 crores, marking a significant 43.7% year-on-year growth from ₹363 crores in Q3 FY25.

    • Q3 FY26 volume increased by 45.8% to 44,948 tons, indicating strong execution and demand.

    • FY26 revenue guidance was revised upwards from ₹1,710-1,720 crores to ₹1,900 crores, reflecting better-than-expected performance.

    • Total capacity is projected to reach ₹3,400-3,500 crores by March '27 / Q1 '27-'28, driven by aggressive capacity expansion.

    • The company maintains a zero-debt position with cash on books exceeding ₹200 crores, providing strong financial flexibility.

    Concerns

    3

    • A one-time statutory impact of new labor codes (gratuity) of ₹3.5 crores affected PAT margins, though management deemed it minor.

    • PAT margin fell by 70 bps, primarily due to the aforementioned one-time statutory impact.

    • Net working capital days, currently around 34 days, might slightly increase due to the longer cycle times of large EPC and semiconductor projects.

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹522 Cr+43.8%YoY
    2. 02Volume44,948 tons+45%YoY
    3. 03PAT Margin—-0.7%YoY
    4. 04Net Working Capital Days34 days

    Order Book

    high confidence

    Total Value

    ₹ 1,685 crores

    as of 2025-12-31

    quantified
    30.0% YoY3.0% QoQ

    Inflow this qtr

    ₹ 575 crores

    Execution

    cannot take orders beyond a period of 9 to 10 months max

    Composition

    Manufacturing(segment)
    Renewables(segment)
    Multi-story Data Centers(segment)
    Steelmaking (JSW JFE)(segment)
    Exports (Myanmar, Ghana)(geography)
    Non-industrial (Hotel, Lounge)(segment)

    Pipeline

    deal pipeline tcv

    Pipeline 1 (P1) and Pipeline 2 (P2) for unsigned orders

    "Order book growth is balanced with capacity and execution, not muted, and the company focuses on quality and relationships over blindly taking orders."

    Source:
    Prepared remarks
    Q&A

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹150 crores

    raised — preponing capacity expansion due to strong demand · Primarily through INR100 crores QIP, balance from internal resources.

    Debt

    Debt disclosed

    Liquidity

    Cash ₹200 crores

    Company has no borrowings or debt, with over INR200 crores cash on books.

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    FY26 Revenue
    ₹1,900 crores
    		High
    Revenue
    FY27 Revenue
    ₹2,060-2,100 crores
    		High
    Revenue
    FY28 Revenue
    ₹2,500 crores
    		High
    Capacity
    Total Capacity
    ₹3,400-3,500 crores
    		High
    Capacity
    PEB Capacity
    240,000 tons
    		High
    Capacity
    Heavy Structure Capacity
    40,000-45,000 tons
    		High
    Margin
    Margins
    Similar levels (0.1-0.2% variation)
    		High

    Gujarat PEB Plant Commissioning

    June/July 2026
    CurrentUnder construction
    TargetCommercial production

    Why it matters

    Timely commissioning is crucial for achieving the increased PEB capacity and contributing to FY27 revenue targets.

    Gujarat new plant will come into play by June, July.

    How to verify

    capital_allocation.capex.purposes

    Risks & concerns

    4
    RiskSeverity

    Raw material cost escalation

    Steel prices are cyclical, and sudden 30-40% jumps (like during Ukraine war) can be challenging, though managed through pricing and inventory. — Analyst acknowledged

    medium

    Competition in Indian market

    The Indian market is very competitive, making it difficult to achieve better prices from customers externally. — Management acknowledged

    medium

    Increased working capital cycle

    Large EPC and semiconductor projects have longer cycle times, which might slightly increase net working capital days from the current ~34 days. — Management acknowledged

    low

    Statutory impact on PAT margin

    A one-time statutory impact of ₹3.5 crores (over 3-4 years) from new labor codes caused a 70 bps PAT margin fall, but management considers it minor and non-recurring. — Analyst downplayed

    low

    Q&A highlights

    8

    “See, I think Chinese buildings have never been a direct competition for us because the work, which involves a pre-engineered building from engineering design, many meetings, understanding the value proposition, then producing the whole building, and Indian standards for applying pre-engineered building, Indian or American standards, and then executing the building at site.”

    Clarifies that Chinese imports are not a direct threat to Interarch's core PEB business, which is product-centric and involves end-to-end solutions, unlike commodity steel.

    asked by Rajat Baldewa

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q3 FY26 Performance and Upgraded FY26 Revenue Guidance

    Interarch Building Solutions delivered a robust Q3 FY26, with revenue reaching ₹522 crores, marking a significant 43.7% year-on-year growth from ₹363 crores in Q3 FY25. Volume also saw a substantial increase of 45.8% to 44,948 tons. This strong performance led management to revise its FY26 revenue guidance upwards from ₹1,710-1,720 crores to ₹1,900 crores, reflecting better-than-expected capacity utilization and market demand.

    02

    Aggressive Capacity Expansion and Strategic Funding

    The company is undertaking an aggressive capacity expansion plan, primarily funded by a recently approved ₹100 crores QIP. This capital will be used to prepone investments in doubling heavy structure capacity to 40,000-45,000 tons with a new plant in Andhra Pradesh (costing ~₹70 crores) and establishing a new PEB plant in Gujarat (costing ~₹55-60 crores). These two new additions alone represent a capital outlay of ₹125-130 crores, with total FY26 capex expected to be ₹150 crores by June/July.

    03

    Long-Term Growth Targets and Capacity Outlook

    Interarch has set ambitious long-term growth targets, projecting FY27 revenue to be between ₹2,060-2,100 crores and maintaining its FY28 target of ₹2,500 crores. With the planned expansions, the company anticipates its total capacity to reach ₹3,400-3,500 crores by March 2027 or Q1 FY28. The PEB capacity is expected to increase to 240,000 tons by Q2 FY27, up from the current 160,000-200,000 tons, with two new 40,000-ton plants in Gujarat.

    04

    Niche Market Focus and Competitive Differentiators

    Management emphasized that the pre-engineered building (PEB) industry is a niche, product-oriented sector, requiring end-to-end solutions from design to execution, unlike commodity steel fabrication. Interarch's 43-year history, proven track record in executing complex and large projects (e.g., T3 airport, Iron Mountain data center), and strong client relationships are highlighted as key differentiators. This allows them to secure orders based on capability, reliability, and systematic execution rather than just price, especially against new entrants or large steel manufacturers.

    05

    Robust Order Pipeline and Diversified Inflow

    The company maintains a healthy order book of ₹1,685 crores as of Q3 FY26, with a strong order inflow of ₹573-575 crores for the quarter and ₹1,600 crores for the nine-month period. The unsigned order pipeline (P1 and P2) stands at approximately ₹1,200 crores and ₹1,000 crores respectively, with a win rate of around 21%. New orders are diversified across manufacturing, renewables, multi-story data centers, and include two export orders to Myanmar and Ghana, with further export inquiries from Africa and North America.

    06

    Margin Management and Financial Health

    Despite a competitive Indian market and a one-time📎 statutory impact of ₹3.5 crores from new labor codes on PAT margins, management aims to maintain current margin levels (with a minor 0.1-0.2% variation). This will be achieved through internal economies, including improved purchasing, productivity, and waste management. The company boasts a strong financial position with over ₹200 crores in cash on its books and zero debt, providing robust liquidity for its growth initiatives.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.