Interarch says no tax demand after 2025 search inquiries

Interarch Building Solutions Limited reported that it had received no assessment order or demand order as of November 4, 2026, after an Income Tax Department search in August 2025 and two subsequent information requests. Management said no material adjustment was required to the September 2026 unaudited results based on information then available.

Has Interarch received a tax assessment or demand order?

No, Interarch said no assessment order or demand order had been received as of November 4, 2026. The disclosure relates to search and survey proceedings undertaken by the Income Tax Department from August 18, 2025 to August 22, 2025 under Sections 132 and 133A of the Income-tax Act, 1961.

The August 2025 proceedings covered Interarch’s offices, certain manufacturing and other premises, and residences of certain employees and key managerial personnel. Interarch said the Department took documents, data backups and other information for further investigation, while the company’s business and operations continued without disruption during the five-day action.

The disclosed sequence moves from the August 2025 search to a block-return filing and follow-up information requests by November 2026. Interarch did not disclose an amount of tax under examination, a proposed adjustment, a provision, or an expected date for an assessment order.

What tax inquiries has Interarch answered since the search?

Interarch filed its block assessment return on February 26, 2026 after receiving a January 29, 2026 notice under Section 115BC. That notice required a revised income-tax return for the period from April 1, 2019 to October 17, 2025.

Interarch subsequently received a Section 142(1) notice dated September 14, 2026 and submitted its response on October 27, 2026. A further Section 142(1) notice dated October 23, 2026 was answered on November 3, 2026, one day before the Board approved the quarter ended September 30, 2026 results.

The filing does not set out the information requested by the Department or the contents of Interarch’s responses. It does establish that the information requests followed the February 26, 2026 block-return filing and remained active as of the November 4, 2026 financial-results announcement.

Management said that, based on the status of the proceedings and information presently available on November 4, 2026, no material adjustment was required to the unaudited financial results. That is management’s stated accounting assessment and not a disclosed determination by the Income Tax Department.

What did Interarch’s auditor say about the tax search?

S.R. Batliboi & Co LLP drew attention to the income-tax search and survey as an emphasis-of-matter item in its November 4, 2026 review report, while stating that its conclusion was not modified. The report reviewed Interarch’s unaudited results for the quarter ended September 30, 2026 and the period from April 1, 2026 to September 30, 2026.

The auditor specifically referred to the financial-results note covering the August 18-22, 2025 search and survey. It said that nothing had come to its attention through the review that caused it to believe the statement failed to make required disclosures or contained a material misstatement.

The review was conducted under Standard on Review Engagements 2410, which the auditor described as providing moderate assurance and as substantially less extensive than an audit. The auditor did not express an audit opinion, but its report expressly retained the same review conclusion despite highlighting the tax matter.

The emphasis-of-matter paragraph is separate from the company’s statement that no assessment or demand order existed as of November 4, 2026. Together, the disclosures show an ongoing tax process that was identified in the limited-review report without changing the auditor’s conclusion on the September 2026 financial statement.

How did Interarch perform in the September 2026 quarter?

Interarch reported revenue from operations of Rs 505.3833 crore for the quarter ended September 30, 2026, compared with Rs 491.0862 crore in the quarter ended September 30, 2025. Profit after tax fell to Rs 30.6935 crore from Rs 32.2798 crore, while profit before tax declined to Rs 40.8886 crore from Rs 43.5008 crore.

For the half year ended September 30, 2026, revenue from operations rose to Rs 965.0295 crore from Rs 871.8611 crore in the corresponding prior-year period. Profit before tax declined to Rs 78.441 crore from Rs 81.2811 crore, while profit after tax was Rs 58.9395 crore against Rs 60.6587 crore.

Interarch reported its activities as one operating segment under Indian Accounting Standard 108, or Ind AS 108, Operating Segments. That segment includes manufacturing, supply, erection and installation of pre-engineered buildings, metal roofing and cladding systems, and metal false ceilings, so the results do not isolate performance by product activity.

What balance-sheet and cash-flow changes did Interarch disclose?

Interarch’s total assets were Rs 1,409.5256 crore at September 30, 2026, compared with Rs 1,300.9709 crore at March 31, 2026. Total equity increased to Rs 923.1894 crore from Rs 881.1178 crore, and cash and cash equivalents rose to Rs 60.686 crore from Rs 20.605 crore.

For the half year ended September 30, 2026, net cash flow from operating activities was Rs 85.272 crore, compared with Rs 41.9585 crore in the half year ended September 30, 2025. Investing activities used Rs 21.4702 crore, compared with net cash generated from investing activities of Rs 22.8287 crore a year earlier, including Rs 76.792 crore spent on property, plant, equipment and intangible assets.

As of September 30, 2026, Interarch had Rs 6.7442 crore of unutilised net proceeds from its September 2024 initial public offering. The balance included Rs 3.82 crore for information-technology infrastructure upgrades and the remainder for capital expenditure requirements; Rs 6.74 crore was invested in fixed deposits and Rs 0.42 lakh was held in the bank account.

Interarch also disclosed shareholder approval to raise up to Rs 250 crore through a qualified institutional placement, or QIP, approved at the September 10, 2026 annual general meeting. Separately, it fixed November 30, 2026 as the record date for a subdivision of each Rs 10 equity share into five Rs 2 equity shares.

Conclusion

The November 4, 2026 disclosure shows that Interarch’s August 2025 tax search had progressed to a block-assessment return and two follow-up information responses, without a reported assessment or demand order. The auditor highlighted the matter but did not modify its limited-review conclusion, while management reported no material adjustment to the September 2026 results.

The next disclosed tax-related development to watch is any further information request, assessment order or demand order, as Interarch provided neither an amount under examination nor an assessment timetable. Investors can also track whether Interarch proceeds with the approved QIP of up to Rs 250 crore and the November 30, 2026 share-subdivision record date.