Interarch Building Solutions has approved a joint venture with ER Steel Inc., Canada, to jointly explore and develop the Open Web Steel Joists (OWSJ) business for the North American market. The Board of Directors approved the agreement on August 6, 2026, aiming to capture 2 to 5% of the market share in the next three years. This strategic move opens a new revenue stream by combining Interarch’s engineering and manufacturing strengths with ER Steel’s established presence in the USA and Canadian markets.

The disclosure was made pursuant to Regulation 30(6) read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company confirmed that the transaction does not fall within related party transactions and that no promoter or group company has an interest in the entity being acquired.

Joint Venture Structure

The proposed collaboration establishes a structured framework for evaluating the design, engineering, manufacturing, and supply of OWSJ products through a scalable platform in India. Interarch will lead engineering, detailing, manufacturing, and quality compliance activities from India. ER Steel will primarily support market development, customer relationships, and sales and marketing activities in Canada and the USA.

Funding and Commitments

The total initial investment planned is ₹80 crore. An amount equal to 25% of the Initial Cost shall be contributed at the Initial Closing via incorporation capital by Interarch and remittance of initial contribution by shareholders. The balance 75%, amounting to ₹60 crore, will be contributed in three equal tranches of ₹20 crore each. Interarch and ER Steel will contribute committed capital in the agreed shareholding ratio of 76:24.

ER Steel must enter into an Offtake Agreement with the Joint Venture Company (JVCo) to purchase a minimum quantity of OWSJ products for distribution and sale in Canada and the USA. This serves as a major commercial assurance for the JV. Interarch will incorporate the JVCo in India, and the JVCo will execute a Deed of Adherence to be bound by the JV terms once incorporated.

Strategic Rationale

The partnership leverages ER Steel’s presence in the target markets to open new opportunities for Interarch. Management stated that Interarch’s strength in engineering and manufacturing combined with ER Steel’s knowledge and presence creates a strong basis for success. Depending on the growth of the business, the company retains the option to expand further beyond the initial investment.

Interarch Building Solutions has approved a stock split in the ratio of 1:5, a significant corporate action that will increase the number of shares outstanding. Alongside this announcement, the company also disclosed its latest quarterly financial results, presenting a mixed but broadly improving operational picture on a year-on-year basis.

Q1 Financial Performance

The company's Q1 revenue rose to 4.6B rupees, compared to 3.8B rupees in the corresponding period of the previous year, indicating a healthy year-on-year increase in top-line performance. The following table summarizes the key financial metrics for the quarter:

EBITDA Expansion Amid Marginal Profit Dip

Interarch Building Solutions reported Q1 EBITDA of 394M rupees, up from 316M rupees in the year-ago quarter, reflecting improved operational efficiency. The EBITDA margin also expanded to 8.58% from 8.31% on a year-on-year basis, signaling better cost management relative to revenue. However, the company's standalone net profit edged slightly lower to 282M rupees from 284M rupees in the same period last year, a marginal year-on-year decline despite the stronger revenue and EBITDA performance.

Stock Split Announcement

In a separate corporate development, Interarch Building Solutions announced board approval for a stock split in the ratio of 1:5. Stock splits of this nature typically result in a proportional increase in the number of shares while reducing the face value per share accordingly. The company has not provided additional details beyond the approval of the split ratio in the disclosed information.