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Interarch Building Solutions LtdQ1 FY25

Interarch Building Solutions Ltd Q1 FY25 Earnings Call Analysis

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

Price: 1,937P/E: 25.2Market Cap: ₹3.5K CrSector: Construction

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3
  • The company aims to double its revenue by FY'27-'28, targeting approximately INR 2,400 to 2,500 crores.
  • Plans to achieve around INR 2,600 crores revenue were mentioned, but the conservative guidance remains INR 2,400-2,500 crores considering steel price fluctuations.
  • Capacity expansions in Andhra Pradesh and North India are underway to support this growth.
  • Targeting volume growth of about 17.5% for FY '26 with a similar profit growth, and approximately 20% growth in the following year.
  • The company's total order book stands at around INR 1,646 crores, supporting near-term revenue targets.
  • Utilizable capacity is expected to increase as new plants reach full operation by mid FY '26.
  • The company expects to maintain or improve margins alongside volume growth through operational leverage and better pricing.

Margin guidance

Category 2
  • The company aims to double revenue from FY'24 to FY'28, targeting INR2,400 to INR2,500 crores by FY'27-'28, slightly conservative from an earlier estimate of INR2,600 crores.
  • They plan a 17.5% growth for the coming year (FY'26), backed by existing order book and capacity expansion in Andhra Pradesh and North India.
  • Anticipate profit before tax and EBITDA growth in tandem, aiming to break the 10% EBITDA margin barrier soon, with Q4 FY'25 recording a 10.5% EBITDA margin and 10.9% PBT margin.
  • Expect continued margin improvement via larger orders, internal economies of scale, automation, and better supplier bargaining.
  • Plans include capacity increases through new plants and upgrades, positioning for sustained growth with focus on sectors like EV infrastructure, renewables, data centers, and exports.
  • EPS expected to grow with profit increases and maiden dividend declared at INR12.5 per share, signaling confidence in earnings growth.

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Fundraise plans

  • No specific mention of any current or planned fundraising through debt or equity in the provided transcript excerpts.
  • The company indicated no debt on its books and focuses more on executing its growth plans through internal accruals and capital expenditure.
  • Capex plans mentioned involve spending INR65 crores in FY25 and an anticipated INR80 crores in FY26 for capacity expansions.
  • No references to raising funds via equity or debt were stated during the call.
  • Management emphasized building capacity and achieving revenue growth mainly through organic expansion and operational leverage.

Order book

Yes
  • As of April 30, 2025, Interarch's total order book stands at approximately INR 1,646 crores.
  • The company secured the largest-ever pre-engineered building order in the Indian PEB industry, valued at about INR 300 crores.
  • The current order book reflects a strong pipeline with repeat orders contributing nearly 82% of revenue.
  • The company aims to grow its order book to support a revenue potential of INR 1,900 to 2,000 crores at 85% utilization of a 2 lakh ton capacity.
  • Interarch expects to scale the order book further to reach full capacity utilization, excluding upcoming new capacities.
  • Orders generally have execution timelines within one year, with most completed within 9 months.
  • The company is bidding for larger orders and focusing on expanding its footprint in high-growth sectors to maintain strong order inflows.

Capex plans

Yes
  • FY '25 capex was about INR 65 crores, partly work in progress.
  • FY '26 planned capex around INR 80 crores, overlapping from prior year and will continue financially.
  • New plant investments generally cost INR 70-80 crores each.
  • Recently acquired additional 20 acres in Andhra Pradesh to set up a heavy fabrication line by September 2026.
  • Expansion underway at Andhra Phase 2 and Kichha facilities, adding ~40,000 metric tons capacity.
  • Preparing a new manufacturing facility in Gujarat (land acquired).
  • Setting up 2 new engineering offices in India within the current financial year to strengthen technical capabilities.
  • Installation of rooftop solar plants (1 MW each) at Kichha, Pantnagar, Tamil Nadu, and Andhra Pradesh facilities for power cost savings.
  • Focus on expanding capacity to support targeted revenue growth to INR 2,400 crores by FY '27-28.

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