Interarch FY26: Growth, a full order book, and the push into heavy steel

Interarch Building Solutions ended FY26 with its strongest year so far, riding on improving private sector capex in India. Revenue from operations grew 30.6 percent year on year to INR 1,898 crore. EBITDA rose 29.4 percent to INR 176.3 crore, and profit after tax increased 24.8 percent to INR 134.5 crore.

The quarter was steady rather than spectacular. Q4 FY26 revenue was INR 503.6 crore, up 8.7 percent year on year. EBITDA was INR 52.8 crore, with EBITDA margin stable at 10.5 percent. PAT for the quarter declined to INR 36.6 crore from INR 38.7 crore a year ago, bringing PAT margin down to 7.3 percent.

Management framed FY26 as a milestone year, backed by a pickup in private investments in India. The company also declared a final dividend of INR 12.50 per share for FY26.

FY26 performance: strong growth, stable margins

The company’s FY26 mix by end user continued to be dominated by industrial and manufacturing projects. In the investor presentation, industrial and manufacturing accounted for 87 percent of FY26 revenue, infrastructure was 11 percent, building was 1 percent, and others were 2 percent.

Despite the scale-up, operating margins remained largely flat. EBITDA margin moved marginally from 9.4 percent in FY25 to 9.3 percent in FY26, and PAT margin declined from 7.4 percent to 7.1 percent.

Management also highlighted certain one-time and setup costs in the concall, including a one-time impact from new labour codes and spending tied to export certifications and capability building for high-rise and heavy structure opportunities.

Order book visibility and export momentum

Interarch reported a total order book of INR 1,703 crore as on 30 April 2026. The company also disclosed orders booked between 1 February 2026 and 30 April 2026 of INR 476 crore.

Order book mix in the investor deck showed industrial at 44 percent, infrastructure at 32 percent, renewables at 19 percent and logistics at 5 percent. Management indicated this order book provides visibility for sustained growth, while also flagging the possibility of near-term headwinds from external market factors.

Exports are starting to show up more meaningfully. The investor deck disclosed FY26 export orders of INR 40.2 crore, with region-wise split of 48 percent Africa, 36 percent Canada and 16 percent Myanmar. Management also stated the company secured export certifications for Canada and the USA, which is an enabling step for scaling international sales.

A key development is the collaboration with ER Steel. The presentation described an MoU for structural steel and pre-engineered building business development in Canada and North America, and also for exploring Open Web Steel Joists (OWSJ). Management described the collaboration as spanning the value chain, including engineering, manufacturing, supply and logistics, and technical support.

Separately, Interarch also highlighted a collaboration with Mold-Tek Technologies, where Interarch will handle manufacturing and logistics, while Mold-Tek supports detailing for export-oriented PEB and structural steel projects.

The real story: capacity and the move into heavy structures

Interarch is in the middle of a capacity buildout, and management positioned this as the backbone for the next phase of growth. The investor presentation stated the company invested over INR 127.8 crore towards capacity expansion, including Andhra Pradesh, Kicchaa and Gujarat.

Two upcoming facilities are central to the strategy:

First is the Gujarat plant. Management stated land was acquired in Gujarat for a new PEB manufacturing facility located within a major industrial cluster, intended to serve sectors like electric vehicles and semiconductors. The manufacturing facilities table in the presentation shows the Kheda, Gujarat PEB facility targeted for commissioning in Q2FY27.

Second is the heavy steel structures expansion in Andhra Pradesh. Management stated land was acquired adjacent to the Andhra Pradesh facility to expand into heavy steel structures and strengthen its position in high-rise steel buildings. The facilities table also includes Andhra Pradesh heavy steel structures capacities with commissioning timelines in Q2FY27 and Q4FY27.

In the concall, management explained that heavy structures are more relevant for data centres, high-rise buildings and other large structures. The company also indicated it is looking at automation and robotics, especially welding, and noted that machinery for heavy structures is being imported from Germany and Italy.

What investors should watch

FY26 shows Interarch’s ability to grow meaningfully without taking on heavy finance costs. But the year also highlighted working capital intensity. FY26 operating cash flow was negative at INR 18.8 crore, with working capital changes of minus INR 164.6 crore. Cash and cash equivalents fell sharply to INR 20.6 crore.

Management linked this to working capital needs tied to larger milestone-based orders and inventory positioning amid steel price moves. The company also indicated it is tightening payment terms for large orders, seeking higher advances and more supply-linked payments.

Going forward, the core operating questions are clear. Can the company commission the Gujarat and Andhra facilities within the indicated timelines, ramp them smoothly, and convert the order pipeline into profitable growth without stretching working capital too far?

Interarch ends FY26 with strong revenue momentum and a large order book. The next leg depends on executing the expansion plan and scaling exports and heavy structures in a disciplined way.