Interarch Building Solutions Limited has submitted its quarterly monitoring agency report for the period ended December 31, 2025, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, prepared by CRISIL Ratings Limited as the appointed monitoring agency, provides a comprehensive overview of the company's IPO proceeds utilization during the third quarter of fiscal year 2026.

Regulatory Compliance Statement

On February 7, 2026, the company filed a formal statement with NSE and BSE confirming no deviations or variations in the use of IPO proceeds for the quarter ended December 31, 2025. Managing Director Arvind Nanda digitally signed the compliance document, reaffirming adherence to the objects mentioned in the original IPO offer letter dated August 22, 2024.

IPO Proceeds Utilization Summary

During the quarter ended December 31, 2025, the company utilized Rs 46.21 million from its IPO proceeds, bringing the cumulative utilization to Rs 1,581.08 million. The monitoring agency confirmed that all utilization remains aligned with the objects disclosed in the original offer document.

Object-wise Fund Deployment

The company's IPO proceeds are being deployed across six primary objects, with varying levels of completion. The capital expenditure towards setting up the project received Rs 0.63 million during the quarter, while upgradation of existing manufacturing facilities saw Rs 18.62 million deployment.

Fund Reallocations and Approvals

The company has undertaken strategic reallocations of IPO proceeds through shareholder approvals. During the quarter ended March 31, 2025, shareholders approved the reallocation of Rs 287.90 million from Object 1, with Rs 240.20 million redirected to Object 2 and Rs 47.70 million to General Corporate Purposes.

Additionally, in May 2025, shareholders approved another reallocation totaling Rs 95.00 million from Objects 1 and 2 toward a new object for manufacturing Facility-II at Andhra Pradesh. This reallocation specifically addresses the final payment for new land acquisition adjacent to the company's existing property.

Deployment of Unutilized Funds

The remaining Rs 300.47 million of unutilized proceeds has been strategically invested in fixed deposits and maintained in designated bank accounts. The largest portion, Rs 190.00 million, is placed in a YES Bank fixed deposit maturing on September 6, 2026, earning 6.45% returns.

Interarch Building Solutions Limited has announced its unaudited financial results for the third quarter of FY26, demonstrating strong operational performance and continued growth momentum. The company's Board of Directors approved the results at a meeting held on February 02, 2026, followed by an earnings conference call on February 03, 2026.

Financial Performance Overview

The company delivered impressive financial results for the quarter ended December 31, 2025, with substantial improvements across key performance indicators.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company maintained its growth trajectory with strong year-over-year improvements.

Management Commentary and Growth Outlook

During the earnings call, Managing Director Arvind Nanda expressed satisfaction with the quarterly performance, stating that results exceeded expectations. The company is well-positioned to achieve and surpass its original revenue target, with projections indicating potential revenue of ₹1,900 crores for FY26 against the initial target of ₹1,710-1,720 crores.

The pre-engineered building (PEB) industry has gained significant recognition as a distinct category, with increased market acceptance for steel buildings and integrated solutions. The company's capacity utilization is currently running high, with monthly revenue run-rate of approximately ₹156-157 crores.

Capacity Expansion and QIP Fundraising

The Board approved raising funds through a Qualified Institutional Placement (QIP) for up to ₹100 crores to accelerate capacity expansion plans. The funds will be utilized for two major projects:

The expansion will increase total PEB capacity to 240,000 tons and heavy structure capacity to 40,000-45,000 tons, supporting a revenue potential of ₹3,400-3,500 crores.

Order Book and Pipeline

The company maintains a strong order book of ₹1,685 crores, with quarterly order inflow of ₹570-575 crores. The order pipeline shows robust prospects:

Key sectors driving growth include manufacturing, renewables, data centers, and multi-story commercial buildings. Notable orders include projects for JSW and semiconductor facilities for Micron and Tata Electronics.

Export Initiatives

The company secured export orders from Myanmar and Ghana during the quarter, with active discussions for projects in North America and Africa. Export margins are typically better than domestic operations due to reduced project management responsibilities.

Operational Highlights

Cost management remained effective during the quarter. Cost of raw materials and components consumed was ₹30,543.74 lakhs, employee benefits expense stood at ₹4,296.60 lakhs, while erection and installation charges were ₹4,748.59 lakhs.

Regulatory and Financial Updates

The company recorded an exceptional item of ₹324.23 lakhs related to new Labour Codes implementation. The Income Tax Department conducted proceedings from August 18-22, 2025, with full cooperation provided and no demands raised.

IPO proceeds utilization continued with ₹15,810.89 lakhs utilized out of net proceeds of ₹18,809.79 lakhs, leaving ₹2,998.90 lakhs temporarily invested in fixed deposits.

Future Projections

Management projects 15% growth for FY27, targeting revenue of ₹2,100+ crores, with the long-term goal of ₹2,500 crores by FY27-28 remaining intact. The company maintains a debt-free status with cash reserves exceeding ₹200 crores.