Interarch Accelerates Growth Capacity and Profit Outlook

Ashwin Thakker

— 2 min read
  • Revenue Growth Outlook: Targeted above 17.5%, potentially reaching 20% for FY26.
  • EBITDA Margin Outlook: Expected to improve from 8.3% (1QFY26), aiming to surpass previous year’s EBITDA and achieve 10%+ from Q3 onwards.
  • Capacity Expansion: Increasing from 161,000 MTPA to approximately 200,000 MTPA by August 2025. Further new heavy structure capacity (24,000 tons) and additional PEB capacity (40,000 tons) planned by Q2 FY27.
  • Order Book: Robust at Rs. 1,695 crores as of July 31, 2025. Confirmed pipeline (Pipeline-I) stands at ~Rs. 2,500 crores, with a broader pipeline (Pipeline-II) of ~Rs. 4,000 crores.

Interarch Building Solutions Limited sees dramatic growth ahead, projecting to surpass its 17.5% revenue growth guidance and improve margins. With significant capacity expansions underway, a robust Rs. 1,695 crore order book, and strategic ventures into new age sectors and heavy structures, Interarch is poised for substantial future performance. The company’s forward-looking commentary highlights a buoyant market and strategic execution.

Driving Growth Through Strategic Capacity Expansion

Interarch Building Solutions Limited anticipates robust growth, expecting to exceed its initial 17.5% revenue growth guidance, potentially reaching 20% for the fiscal year. This optimism is fueled by strong market demand for pre-engineered buildings and the company's expanding capabilities. Management highlighted their current combined capacity of 161,000 MTPA, which is set to increase to approximately 200,000 MTPA with the imminent commissioning of new facilities in Andhra Pradesh (Phase-II) and Kichha.

“We are doubling our capacity in the three years. I have not seen anything like this before,” stated Arvind Nanda, Managing Director.

Furthermore, a new Heavy Fabrication Unit and additional PEB capacity, backed by a planned CAPEX of Rs. 140-150 crores for FY26-27, are designed to significantly boost output for new age industries and exports, contributing an estimated Rs. 1,300 crores in additional building value.

Enhancing Margins Amidst Buoyant Demand

Despite a competitive landscape, Interarch aims to enhance its EBITDA margins, targeting an improvement of 50-100 basis points from its 1QFY26 margin of 8.3%. The company expects margins to improve from Q3 onwards, benefiting from operational leverage as sales volume increases. Arvind Nanda affirmed,

“I think we will achieve our EBITDA that we had achieved last year, if not more.”

The strategy includes selective order acceptance for better pricing and internal cost efficiencies across purchasing, freight, and productivity. Interarch's order book stands strong at Rs. 1,695 crores, complemented by a substantial pipeline. The company is actively diversifying into high-value sectors like data centers and semiconductors, and expanding its export footprint, which offers “definitely much better” margins and faster working capital cycles. This strategic focus positions Interarch to capitalize on the dramatic increase in pre-engineered building demand across India and internationally.

Interarch Building Solutions Limited is positioned for significant forward momentum. With aggressive capacity expansion, a focus on high-growth sectors, and a robust order pipeline, the company anticipates surpassing its growth targets while steadily improving profitability. The management's confidence underscores a favorable market shift towards pre-engineered solutions and Interarch's strategic capabilities.

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