Interarch Building Solutions reported a 20.7% year-on-year increase in revenue from operations to ₹459.6 crore for the quarter ended June 30, 2026, driven by strong order inflows in the pre-engineered building (PEB) sector. Alongside robust financial performance, the company announced a joint venture with ER Steel Inc to expand its presence in the USA and Canada, a strategic collaboration with Mold-Tek Technologies Limited (MTTL) to enhance export capabilities, and approved a QIP of ₹250 crore to accelerate capacity expansion. Management reaffirmed FY27 revenue guidance of ₹2,150-₹2,200 crore and revised its FY28 target upward to ₹2,700 crore from ₹2,500 crore.

Q1FY27 financial performance

The company's topline growth outpaced the previous year's performance, where revenue stood at ₹380.8 crore in Q1FY26. EBITDA, excluding other income, improved to ₹39.4 crore from ₹31.6 crore, widening the EBITDA margin by 27 basis points to 8.6%. However, profit after tax (PAT) declined marginally by 0.5% to ₹28.2 crore from ₹28.4 crore in the corresponding period last year, resulting in a PAT margin contraction of 131 basis points to 6.1%. Management noted that the flat PAT was a function of lower other income, as IPO proceeds previously parked in fixed deposits have since been deployed into capital expenditure, reducing interest income. The company reported positive operating cash flow of ₹26.83 crore during the quarter. Total volume dispatched in Q1FY27 stood at 38,500 tonnes against an installed capacity of 221,000 tonnes.

Revenue guidance and capacity outlook

Management guided for full-year FY27 revenue of ₹2,150-₹2,200 crore, requiring approximately ₹1,700 crore of revenue over the remaining nine months, implying an average quarterly run rate of around ₹600 crore. Managing Director Arvind Nanda noted that the first half is typically softer due to seasonal factors such as monsoon-related site clearance delays, with execution momentum expected to improve progressively in the second half. Volume guidance for FY27 stands at approximately 190,000 tonnes, reflecting around 18% growth over the prior year. For FY28, the company revised its revenue projection upward to ₹2,700 crore from ₹2,500 crore, supported by the ramp-up of heavy structure capacity, with EBITDA margin targets of 9.5%-10% for that year.

Strategic partnerships and international expansion

Interarch entered into a joint venture agreement with ER Steel Inc, based in Canada, to establish a structured platform for the design, engineering, manufacturing, and supply of Open Web Steel Joist (OWSJ) products from India for distribution in the USA and Canadian markets. Under the agreement, Interarch will lead engineering, detailing, manufacturing, and quality compliance from India, while ER Steel will manage market development, customer relationships, sales, and marketing in North America. ER Steel has committed to a 100% off-take agreement for all OWSJ products manufactured. The JV plant is being set up for approximately 15,000 tonnes of capacity, with Phase 1 targeting 4,000-5,000 tonnes, expected to generate sales of approximately $7.5 million. At full capacity, management estimates sales of $20 million-$23 million with an EBITDA margin in excess of 20%. Commercial production is targeted by end of July next year. Total funding required by the JV company is expected to be ₹80 crore.

Additionally, the company signed a collaboration agreement with Mold-Tek Technologies Limited (MTTL) to enhance its export presence. Interarch will handle manufacturing and logistics, while MTTL will provide detailing for PEB and structural steel projects. Both companies will work exclusively on projects introduced by MTTL under a two-year business plan, extendable by mutual consent. Interarch will pay MTTL a commission on export orders generated through its efforts. Export revenue in Q1FY27 stood at approximately ₹10 crore-₹12 crore out of total revenue of ₹460 crore. Management targets exports reaching 10% of total turnover in the short to medium term of one to two years.

Capacity expansion and order book

Interarch commissioned Phase 1 of its new PEB manufacturing facility at Kheda, Gujarat, on July 9, 2026, taking total installed capacity to 221,000 tonnes. Phase 2 of the Gujarat facility is targeted for commissioning by October, making it the company's fifth fully integrated PEB plant. The heavy structure facility in Andhra Pradesh commenced trial production and is expected to reach commercial production by end of August or early September 2026. Phase 2 civil works at the Andhra location have commenced, with completion targeted by March, and Phase 3 targeted by December of next year, eventually catering to 75,000-80,000 tonnes of heavy structures. A second PEB plant in Gujarat, for which land has already been acquired, is also planned. The company's order book stood at ₹1,864 crore as of July 31, 2026, including a major order worth ₹165 crore from an energy company in Vadodara. Approximately 35% of the order book comprises new-age industries and newer segments such as data centers, multistory buildings, semiconductors, EVs, and renewables. The company's first heavy structure order, for a data center, has already been secured for trial production at the new Andhra plant.

QIP and capital allocation

The company's Board approved a QIP of ₹250 crore, revised upward from an earlier approval of ₹100 crore, to fund accelerated expansion plans. Broad utilisation of proceeds is planned as follows: approximately ₹140 crore-₹150 crore for Phase 2 and Phase 3 of the Andhra heavy structure facility; ₹50 crore-₹60 crore for the second Gujarat PEB plant; and ₹50 crore-₹60 crore for the OWSJ export unit JV. Capex is planned at approximately ₹129 crore in FY27 and ₹133 crore in FY28. Management noted that the company carries zero debt and that QIP proceeds are intended solely for capital expenditure, with internally generated funds earmarked for working capital requirements. Since the IPO, which raised approximately ₹180 crore, the company has already spent approximately ₹230 crore-₹240 crore on capex over approximately two years.

What the numbers show

The combination of rising revenue and expanding EBITDA indicates strong operational leverage, with EBITDA growing faster than revenue at 24.6% versus 20.7%. The flat PAT despite higher EBITDA reflects the absence of treasury income as IPO funds have been deployed into productive capacity rather than financial instruments, a transition management characterised as a positive structural shift. The order book of ₹1,864 crore, combined with new capacity coming online across Gujarat and Andhra Pradesh, provides visibility for the targeted revenue ramp in the second half of FY27. The entry into OWSJ exports and the growing share of new-age industries at approximately 35% of the order book diversify revenue streams beyond traditional industrial PEB, potentially supporting margin improvement as these segments carry higher realisations.

Interarch Building Solutions Limited (formerly known as Interarch Building Products Limited) has convened its 43rd Annual General Meeting on Thursday, September 10, 2026, at 11:30 am IST via Video Conferencing and Other Audio-Visual Means. The company simultaneously released its Integrated Annual Report for FY2025-26, disclosing its strongest financial performance to date, with revenue from operations reaching ₹1,89,800.10 Lacs and a market capitalisation of ₹2,792.2 Crore as of March 31, 2026.

FY2025-26 Financial Performance

The company delivered robust year-on-year growth across key financial metrics in FY2025-26, driven by rising demand for pre-engineered building solutions, an improving project mix with a greater share of high-value industrial and manufacturing projects, and expanded manufacturing capacity.

The Profit Before Tax of ₹18,499.43 Lacs includes an exceptional item of ₹324.23 Lacs representing the impact of new Labour Codes. Total Comprehensive Income for the year stood at ₹13,747.56 Lacs, compared to ₹10,815.08 Lacs in FY2024-25, a growth of 27.11%.

Operational Highlights

The company commissioned Phase II at its Athivaram facility in Andhra Pradesh during the year, making it its fourth fully integrated PEB manufacturing plant. An automated box column line was also brought into operation at its Uttarakhand facility. As of March 2026, total PEB installed capacity reached 2,01,000 MTPA. The order book stood at ₹1,552 Crore as of March 31, 2026.

Key operational metrics for FY2025-26 include:

• 987 buildings constructed in India and overseas
• 134 new clients added
• 3,242 total workforce as of March 31, 2026
• Zero Lost Time Injury Frequency Rate
• ₹237.54 Lacs CSR expenditure
• ₹30.52 Lacs investment in energy-efficient LED technology

The company secured export orders worth ₹40.2 Crore from markets including Canada, Kenya, Myanmar, and Ghana, spanning sectors such as healthcare, pharmaceuticals, hospitality, and specialised infrastructure. The company also entered into a strategic understanding with ER Steel INC. to grow its presence in Canada and the wider North American structural steel market, including the Open Web Steel Joists segment.

Capacity Expansion and Capital Expenditure

A new PEB manufacturing facility is under construction at Kheda, Gujarat, with Phase 1 expected to have commenced operations in July 2026 and Phase 2 expected before December 2026. A dedicated Heavy Steel Structures plant is also being developed on a 20-acre site adjacent to the Andhra Pradesh facility. These investments are supported by a Qualified Institutional Placement of ₹100 Crore approved by shareholders. Total installed capacity is targeted to reach nearly 2,65,000 metric tonnes per annum over the medium term.

Dividend and AGM Details

The Board of Directors has recommended a final dividend of ₹12.50 per equity share of face value ₹10 each for FY2025-26, subject to shareholder approval at the 43rd AGM. The record date for dividend eligibility has been fixed as September 03, 2026, and dividend payment is expected on or before October 09, 2026.

The AGM agenda includes ordinary business items such as adoption of audited financial statements, declaration of final dividend, and re-appointment of Mr. Gautam Suri as a Director liable to retire by rotation. Special business items include renewal of borrowing powers up to ₹1,500 Crore, approval for creation of charges and mortgages up to ₹1,500 Crore, authorisation for loans and investments up to ₹1,000 Crore under Section 186, approval for a QIP of up to ₹250 Crore, sub-division of equity shares from face value ₹10 each to ₹2 each, consequential alteration of the Capital Clause of the Memorandum of Association, and variation in the terms of objects of the IPO issue.

Credit Ratings and Governance

CRISIL upgraded the company's Long Term Rating to CRISIL A/Stable from CRISIL A-/Stable, and upgraded the Short Term Rating to CRISIL A1 from CRISIL A2+. The upgraded ratings were reaffirmed on April 28, 2026. The Board comprised 10 Directors as of March 31, 2026, including four Executive Directors, one Non-Executive Non-Independent Director, and five Non-Executive Independent Directors including one Woman Director. The statutory audit was conducted by S.R. Batliboi & Co. LLP, Chartered Accountants, and the Statutory Auditor's Report for FY2025-26 does not contain any qualifications, reservations, adverse remarks, or disclaimer. An Income Tax Department search and survey was conducted from August 18, 2025 to August 22, 2025 under Section 132 and 133A of the Income Tax Act, 1961; no demands have been raised on the company as of the date of the financial statements, and management is of the view that no material adjustments are required to the financial statements in this regard.