💰 Financial Performance

Revenue Growth by Segment

Industrial/Manufacturing Construction contributed 89% of revenue in Q2 FY26, up from 73% in Q2 FY25. Infrastructure Construction decreased to 6% from 25% YoY. Building Construction stood at 5% in Q2 FY26 compared to 2% in Q2 FY25. Overall revenue grew 51.9% YoY to INR 491 Cr in Q2 FY26.

Geographic Revenue Split

Not specifically disclosed by percentage per region, but the company maintains a wide presence across India and is actively investing to develop exports in a bigger way to diversify its geographic footprint.

Profitability Margins

Net Profit Margin improved to 7.0% in H1 FY26 from 6.5% in H1 FY25. Operating profitability improved significantly from 4.3% in FY22 to 9.4% in FY23. Profit After Tax (PAT) for Q2 FY26 was INR 32 Cr, a 56.2% increase from INR 21 Cr in Q2 FY25.

EBITDA Margin

EBITDA margin stood at 8.4% in H1 FY26 compared to 8.3% in H1 FY25. For Q2 FY26, the margin was 8.5%, up from 7.8% in Q2 FY25. The company aims for double-digit EBITDA margins through operating leverage and larger order sizes.

Capital Expenditure

Property, Plant & Equipment (PPE) increased to INR 209.6 Cr as of September 2025 from INR 149.4 Cr in March 2025, representing a capital outlay of approximately INR 60.2 Cr in six months for capacity expansion in Gujarat and Andhra Pradesh.

Credit Rating & Borrowing

CRISIL upgraded the rating to 'CRISIL A/Stable/CRISIL A1' from 'CRISIL A-/Stable/CRISIL A2+'. The company is virtually debt-free with a gearing ratio below 0.02 times and interest coverage estimated above 16 times for FY25.

⚙️ Operational Drivers

Raw Materials

Steel (including steel coils and plates) is the primary raw material. While the exact percentage of total cost is not specified, the company notes that 75% of contracts are fixed-price, making margins highly sensitive to steel price volatility.

Import Sources

Sourced domestically within India; specific states are not listed, but the company has a strategic partnership with JSPL (Jindal Steel and Power Limited) for heavy steel building segments.

Key Suppliers

JSPL (Jindal Steel and Power Limited) is a key strategic partner for sourcing and joint opportunities in heavy steel structures.

Capacity Expansion

Expanding Pre-engineered Building (PEB) capacity in Gujarat and Heavy Steel Structures (including multistory buildings) in Athivaram, Andhra Pradesh. PPE increased 40% in H1 FY26 to support this expansion.

Raw Material Costs

Raw material costs are a major component of the cost structure; the company faces risk because only 25% of contracts are variable-price, meaning 75% of the portfolio cannot pass on sudden steel price spikes to customers.

Manufacturing Efficiency

Operating leverage is improving as scale increases; revenue per employee and overhead absorption are expected to improve as production volumes rise at new facilities.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Achieving growth through expansion into new-age industries (semiconductors, EVs, data centers), increasing capacity in Gujarat and Andhra Pradesh, and strategic partnerships with JSPL for heavy steel and Mold-Tek for global exports. The company is leveraging its INR 1,634 Cr order book to sustain momentum.

Products & Services

Pre-engineered Buildings (PEB), Heavy Steel Structures, Multistory Buildings, and industrial/manufacturing construction solutions.

Brand Portfolio

Interarch, Interarch Building Solutions.

New Products/Services

Expansion into Heavy Steel Structures and Multistory Buildings through the new Athivaram plant; targeting high-growth sectors like Renewables and Semiconductors.

Market Expansion

Increasing presence in Southern and Western India through new plants and exploring international markets via a collaboration with Mold-Tek Technologies to enhance export capabilities.

Market Share & Ranking

The company claims a 'pretty high market share' in the organized PEB sector in India, though specific percentage ranking is not provided.

Strategic Alliances

Partnership with JSPL for multistory and heavy steel segments; collaboration with Mold-Tek Technologies for global export expansion.

🌍 External Factors

Industry Trends

The global PEB market is projected to grow from USD 19-21 Bn in 2023 to USD 32-34 Bn by 2028. The industry is shifting toward complex, multistory steel buildings and serving new-age sectors like data centers and EV plants.

Competitive Landscape

Competitors are increasing capacity from lower bases; Interarch focuses on the organized sector where it maintains high market share and targets double-digit margins through complexity and scale.

Competitive Moat

Moat is built on a 25-year track record, established relationships with blue-chip industrial clients (79% repeat orders in FY23), and the technical capacity to execute complex, large-scale heavy steel projects.

Macro Economic Sensitivity

Highly sensitive to the industrial capex cycle and GDP growth, as 89% of revenue is derived from the Industrial/Manufacturing sector.

Consumer Behavior

Industrial customers are increasingly shifting toward PEB over traditional construction for faster turnaround times in sectors like logistics and electronics manufacturing.

Geopolitical Risks

Global steel price fluctuations driven by international trade dynamics directly impact input costs and profitability.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with Section 134(3)(n) of the Companies Act, 2013 and Regulation 21 of SEBI Listing Regulations regarding risk management and internal controls.

Environmental Compliance

The Risk Management Committee is responsible for sustainability and ESG-related risks as per the 2024-25 Annual Report.

Taxation Policy Impact

Effective tax rate is approximately 25.3% based on H1 FY26 figures (INR 20.6 Cr tax on INR 81.3 Cr PBT).

Legal Contingencies

Not disclosed in available documents; the company reported 0 pending investor complaints at the end of FY25.

⚠️ Risk Analysis

Key Uncertainties

Volatility in steel prices poses a significant risk to the 75% of the order book that is fixed-price. A sustained downturn in industrial capex could impact the INR 1,634 Cr order book execution.

Geographic Concentration Risk

Historically concentrated in India, but diversifying with new plants in Andhra Pradesh and Gujarat to reduce regional dependency.

Third Party Dependencies

Dependency on steel producers like JSPL for raw material supply and joint project execution in the heavy steel segment.

Technology Obsolescence Risk

Low risk; the company is upgrading to 'new age' construction for data centers and semiconductors to stay ahead of traditional construction methods.

Credit & Counterparty Risk

Trade receivables stood at INR 177.3 Cr in Sept-25, down from INR 211.0 Cr in Mar-25, indicating improving collection efficiency despite higher revenue.