Any current/future capex/capital investment/strategic investment?

Planned CAPEX of approximately Rs. 200 crores over the next 18-20 months. Investment includes commissioning two new Pre-Engineered Building (PEB) plants: one in Gujarat and either Andhra Pradesh or Gujarat. Addition of one heavy structure plant in Andhra Pradesh. The CAPEX will increase PEB capacity by about 80,000 tons (40,000 tons each plant). Heavy structure plant will add about 20,000 to 25,000 tons capacity, valued around Rs. 300 crores. No external borrowing planned for PEB plants; some borrowing may happen for heavy structure plant to enhance shareholder returns. Strategy includes build

Any current/future new fundraising through debt or equity?

No new borrowing has been taken for the recently commissioned plants; most CAPEX was funded through the company's own money. There might be some borrowing planned for the heavy structure plant, but no firm decision has been made yet. The company generated cash internally and is cautious about managing funds. Interest income increased due to IPO funds before deployment, indicating equity infusion occurred in the past. The focus remains on managing business with the least amount of money, avoiding bad debt and dead stock. No explicit mention of upcoming fundraising through debt or equity was mad

Future growth expectations in sales/revenue/volumes?

Interarch aims to increase turnover to around Rs.2,500 crores by FY27-28, expecting higher EBITDA margins with this growth. (Page 23) The company is ramping up capacity with two new plants (PEB plants in Gujarat and Andhra Pradesh, and a heavy structure plant) expected to add Rs.1,000 crores worth of PEB capacity and Rs.300 crores of heavy structure capacity over the next 18-20 months. (Page 17) The order book target for FY26 end is around Rs.1,800-1,900 crores, in line with the ramped-up capacity of about Rs.2,000 crores. (Page 18) Market opportunities are growing rapidly due to increased ste

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects EBITDA margins to improve with increased turnover due to high operational leverage, projecting higher margins by the time they reach Rs. 2,500 crores turnover by 2027-28. Margins growth will depend on better client acquisition, larger projects, efficient project turnaround, purchasing, wastage control, and team retention. Profit margins are viewed as an outcome of quality and service rather than a direct target. The firm anticipates crossing last year's EBITDA and aims for 50-100 basis points margin improvement as order book fullness allows more selective, higher-pric

Current/ Expected Orderbook/ Pending Orders?

Current order book as of August 2025 is approximately Rs. 1,700 crores. The company aims to ramp up capacity to around Rs. 2,000 crores by the end of FY26. Targeted order book for FY26 is about Rs. 1,800-1,900 crores by the first quarter of the next calendar year. Recent order intake was Rs. 450 crores in the last three months. Pipeline-I has an order potential of around Rs. 2,500 crores with a current hit (win) rate of 25%, aiming to improve to 40-50%. Pipeline-II has over Rs. 4,000 crores in potential orders but is more uncertain. The company is selective in order intake, ensuring capacity t

Interarch Building Solutions LtdQ2 FY26

Interarch Building Solutions Ltd Q2 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,736P/E: 22.6Market Cap: ₹3.1K Cr

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Interarch aims to increase turnover to around Rs.2,500 crores by FY27-28, expecting higher EBITDA margins with this growth. (Page 23)
→The company is ramping up capacity with two new plants (PEB plants in Gujarat and Andhra Pradesh, and a heavy structure plant) expected to add Rs.1,000 crores worth of PEB capacity and Rs.300 crores of heavy structure capacity over the next 18-20 months. (Page 17)
→The order book target for FY26 end is around Rs.1,800-1,900 crores, in line with the ramped-up capacity of about Rs.2,000 crores. (Page 18)
→Market opportunities are growing rapidly due to increased steel usage in construction, with big sectors like semiconductors, renewables, and lithium batteries driving demand. (Page 16)
→The company is confident of maintaining steady volume growth as it scales capacity and order intake. (Pages 16–18, 23)

Margin guidance

Category 2

→The company expects EBITDA margins to improve with increased turnover due to high operational leverage, projecting higher margins by the time they reach Rs. 2,500 crores turnover by 2027-28.
→Margins growth will depend on better client acquisition, larger projects, efficient project turnaround, purchasing, wastage control, and team retention.
→Profit margins are viewed as an outcome of quality and service rather than a direct target.
→The firm anticipates crossing last year's EBITDA and aims for 50-100 basis points margin improvement as order book fullness allows more selective, higher-priced orders.
→Other income has increased due to IPO funds generating interest, contributing positively to profits.
→Capacity ramp-up through new plants will enable order book growth to Rs. 1,800-1,900 crores by early next year, supporting future profit expansion.
→Overall, the company is optimistic about growth driven by market development, operational efficiency, and better pricing power.

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Fundraise plans

→No new borrowing has been taken for the recently commissioned plants; most CAPEX was funded through the company's own money.
→There might be some borrowing planned for the heavy structure plant, but no firm decision has been made yet.
→The company generated cash internally and is cautious about managing funds.
→Interest income increased due to IPO funds before deployment, indicating equity infusion occurred in the past.
→The focus remains on managing business with the least amount of money, avoiding bad debt and dead stock.
→No explicit mention of upcoming fundraising through debt or equity was made during the discussion.

Order book

Yes

→Current order book as of August 2025 is approximately Rs. 1,700 crores.
→The company aims to ramp up capacity to around Rs. 2,000 crores by the end of FY26.
→Targeted order book for FY26 is about Rs. 1,800-1,900 crores by the first quarter of the next calendar year.
→Recent order intake was Rs. 450 crores in the last three months.
→Pipeline-I has an order potential of around Rs. 2,500 crores with a current hit (win) rate of 25%, aiming to improve to 40-50%.
→Pipeline-II has over Rs. 4,000 crores in potential orders but is more uncertain.
→The company is selective in order intake, ensuring capacity to deliver within 10-11 months.
→Orders are available in the market; the main constraint is ramping up capacity to meet demand.

Capex plans

Yes

→Planned CAPEX of approximately Rs. 200 crores over the next 18-20 months.
→Investment includes commissioning two new Pre-Engineered Building (PEB) plants: one in Gujarat and either Andhra Pradesh or Gujarat.
→Addition of one heavy structure plant in Andhra Pradesh.
→The CAPEX will increase PEB capacity by about 80,000 tons (40,000 tons each plant).
→Heavy structure plant will add about 20,000 to 25,000 tons capacity, valued around Rs. 300 crores.
→No external borrowing planned for PEB plants; some borrowing may happen for heavy structure plant to enhance shareholder returns.
→Strategy includes building more capacity to capture the available market business without taking orders that cannot be delivered.

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