Detailed Narrative
Strong Q4 and FY25 Financial Performance
Interarch Building Solutions reported a robust Q4 FY25, with revenue growing 20% year-on-year to ₹464 crores and PAT increasing 30% to ₹39 crores. EBITDA margins expanded to 10.5% in Q4. For the full fiscal year 2025, the company achieved a revenue of ₹1,454 crores, up 12% YoY, and a PAT of ₹108 crores, a 25% increase from the previous year. Full-year EBITDA stood at ₹136 crores, growing 21% YoY, with margins at 9.4%.
Record Order Book and Large Project Wins
As of April 30, 2025, Interarch's total order book stood at a healthy ₹1,646 crores, reflecting sustained demand. A significant highlight was securing the largest single pre-engineered building (PEB) order in India, valued at over ₹300 crores. This achievement signifies a breakthrough in market confidence, as such large orders were previously split among multiple players, demonstrating Interarch's enhanced capability and trust.
Strategic Capacity Expansion and Modernization
The company is actively expanding its manufacturing capabilities. An additional 40,000 metric tons of capacity will be added with the completion of Andhra Phase 2 and Kichha lines within a month, bringing total installed capacity to 200,000 metric tons. Further plans include establishing a heavy fabrication line in Andhra Pradesh by September 2026 and preparing for a new plant in Gujarat. Two new engineering offices are also planned to strengthen technical capabilities.
Growth Drivers from New-Age Industries and Diversification
Interarch is benefiting from the growth in new-age industries such as data centers, semiconductors, renewables (solar, lithium battery, EVs), and high-rise buildings. The company emphasizes its industry-agnostic approach, having worked across diverse sectors from auto to FMCG. Management views these new large-scale projects, often requiring 10,000-30,000 tons of steel, as a significant growth opportunity, similar to the automobile plants of earlier decades.
Margin Improvement and Operational Leverage
Management expects margins to improve, driven by larger project sizes, internal operational leverage, and automation. Larger projects allow for better economies of scale and higher value addition, leading to better pricing power. Efforts to reduce wastage through 'cut to length' material procurement and increased automation in production processes are also contributing factors. The company aims to cross the 10% EBITDA margin barrier in the next 2-3 years.
Future Outlook and Capex Plans
Interarch has set a turnover target of ₹2,400-2,500 crores by FY27-28. For the coming year (FY26), they are targeting a 17.5% growth in turnover, with a similar increase in PBT and EBITDA, followed by a 20% growth in FY27. The company spent approximately ₹65 crores on capex in FY25 and anticipates around ₹80 crores for FY26, with each new plant costing ₹70-80 crores.