Interarch Building Solutions Limited: Building on Strong Foundations with Record Q3 FY26 Performance

Interarch Building Solutions Limited, a prominent player in India's pre-engineered building (PEB) industry, has announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The company delivered a stellar performance, marking its best-ever quarterly revenue in Q3 FY26, surpassing the INR 500 crore milestone for the first time. Revenues for the quarter stood at INR 523 crore, reflecting a robust 44% year-on-year (YoY) growth. This strong top-line expansion was complemented by impressive growth in profitability, with EBITDA and Profit After Tax (PAT) increasing by 43% and 32% YoY, respectively, showcasing strong execution capabilities and effective operating leverage.

The nine-month period also demonstrated consistent growth, with net revenue increasing by 40.8% to INR 1,394 crore compared to INR 990 crore in 9M FY25. EBITDA for 9M FY26 reached INR 124 crore (40.6% YoY growth), and PAT stood at INR 98 crore (41.1% YoY growth). The company's EBITDA margin for Q3 FY26 was 9.6%, while the PAT margin was 7.1%. For the nine-month period, both EBITDA and PAT margins were stable at 8.9% and 7.0%, respectively.

Strategic Expansion and Market Leadership

Interarch's growth is underpinned by strategic capacity expansion and capability building initiatives. The company is actively ramping up Phase II of its Andhra Pradesh facility and progressing with the construction of new PEB and heavy steel structure facilities in Gujarat and Andhra Pradesh. These projects are slated for commercialization by Q2 FY27. Management's proactive decision to prepone capital investments, supported by a Qualified Institutional Placement (QIP) of up to INR 100 crore, aims to meet the burgeoning market demand and accelerate growth.

The company's total capacity, encompassing both PEB and heavy structures, is projected to reach approximately INR 3,400-3,500 crore by March next year or Q1 FY28. This expansion is critical for Interarch to solidify its competitive position and contribute to the long-term evolution of the PEB industry in India. The total order book as of January 31, 2026, stands at a healthy INR 1,685 crore, providing strong revenue visibility and confidence in sustaining growth momentum.

Financial Summary (INR Crore)

Diversified Revenue Streams and Operational Excellence

Interarch's revenue streams are diversified across various end-user industries. For the nine months ended December 31, 2025, the Industrial/Manufacturing sector contributed 88% of the revenue, Infrastructure accounted for 9%, and Others contributed 3%. This diversification, coupled with strong customer relationships and an 82% repeat order rate in FY25, highlights the company's ability to cater to a broad spectrum of industrial and non-industrial construction needs.

The company's commitment to operational excellence is evident through its multiple automation initiatives across manufacturing, engineering, and site execution. These initiatives, including advanced machinery from Ficep and Cor Impex (Italy) and proprietary IBSL K-Series automation, are aimed at improving throughput, enhancing quality and safety standards, and driving operational efficiencies. The ongoing SAP S/4HANA implementation is also nearing completion, promising real-time analytics and further improved operational efficiency.

Strategic Partnerships and Future Outlook

Interarch is actively pursuing strategic partnerships to enhance its market reach and capabilities. A collaboration with Mold-Tek Technologies (MTTL) is focused on global markets and driving export orders, with Interarch handling manufacturing and logistics, and MTTL providing detailing for PEB and structural steel projects. Additionally, a strategic partnership with Jindal Steel for Urban Infrastructure (JSL) aims to promote steel as a preferred material for multi-story buildings, data centers, and heavy structures, leveraging combined expertise in design, engineering, and advanced steel production.

Despite the competitive landscape and raw material price volatility, Interarch's management remains confident in its ability to sustain growth and maintain margins. The company's debt-free status, robust order book, and proactive investment in capacity and technology position it favorably to capitalize on the growing demand for pre-engineered steel buildings in India and globally. The company's focus on timely execution, strong customer relationships, and efficient working capital management will be key to achieving its stated guidance of INR 2,500 crore revenue by FY27-28 and potentially exceeding INR 2,100 crore in FY27.