Interarch Building Solutions Ltd

- 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)

- 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.

- 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.

- 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.

- 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.