Interarch Build. Q4 FY26 Earnings Call — Analysis (NSE: INTERARCH)
Interarch reports 31% FY26 revenue growth to ₹1,898 Cr with EBITDA margin steady at 9.3%, new plants on track, and export/JV plans advancing.
The take
FY26 Revenue ₹1,898 Cr ( +30.6% YoY ) . New guidance — FY27 fy27 revenue ₹2,150 Cr to ₹2,200 Cr . New story: Capacity expansion as primary growth driver .
Results
FY26 revenue ₹1,898 Cr (+30.6% YoY); EBITDA ₹176 Cr (+29% YoY) with margin 9.3%; PAT ₹135 Cr (+25% YoY); Q4FY26 revenue ~₹500 Cr, EBITDA margin 10.5%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| FY26 Revenue | ₹1,898 Cr | +30.6% | yoy · FY26 |
| FY26 EBITDA | ₹176 Cr | +29% | yoy · FY26 |
| FY26 EBITDA Margin | 9.3% | +flat | yoy · FY26 |
| FY26 PAT | ₹135 Cr | +25% | yoy · FY26 |
| Q4FY26 Revenue | ~₹500 Cr | +8.7% | qoq · Q4FY26 · vs Q3FY26 |
| Q4FY26 EBITDA | ₹53 Cr | sequential · Q4FY26 · vs Q3FY26 EBITDA of ₹49 Cr | |
| Q4FY26 EBITDA Margin | 10.5% | none · Q4FY26 | |
| Order Book | ₹1,700 Cr | point_in_time · point_in_time · as of 30th Apr 2026 | |
| Q4FY26 Volume | 41,000 MT | none · Q4FY26 |
Guidance
FY27 revenue guided to ₹2,150-2,200 Cr (approx 15% growth), FY28 target ₹2,500 Cr; margins expected to sustain around current levels.
What management committed to
- FY27 revenue will be between ₹2,150 Cr and ₹2,200 Cr, representing ~15% growth over FY26. — ₹2,150 Cr to ₹2,200 Cr, FY27
- FY28 revenue will reach ₹2,500 Cr, as projected earlier (excluding potential heavy-structure upside). — ₹2,500 Cr, FY28
- Gujarat PEB plant Phase-1 will be in commercial production by July 2026. — July 2026, Q2FY27
- Andhra heavy-structures plant Phase-1 will commence production in July-August 2026; Phase-2 and 3 to follow with all three phases ready by end of next year (FY27). — Phase-1 Jul-Aug 2026; three phases by end FY27, Q2FY27 for Phase-1; Q4FY27 for full three phases
- Heavy structures will contribute ₹120-130 Cr revenue in FY27 from approximately 10,000-12,000 tons. — ₹120-130 Cr, FY27
- Export order intake in FY27 will aim for at least ₹100 Cr. — at least ₹100 Cr, FY27
- 50:50 JV plant for open web joy system (100% export to North America) will be operational by August-September 2027. — Aug-Sep 2027, Q2FY28
- EBITDA margin will be sustained around 9.3%-9.5% and PAT margin around 7%-7.5% in FY27. — 9.3-9.5% EBITDA; 7-7.5% PAT, FY27
- Fundraise via QIP will be finalized in the next two to three months primarily for heavy-structure Phase 2 & 3 and part of new Gujarat PEB plant. — Q2FY27
- Combined capacity post expansion by FY28-end will be ₹3,000 Cr PEB and ₹500 Cr heavy structures, totalling ₹3,500 Cr. — ₹3,500 Cr, Q4FY28
Key themes
Capacity expansion and export diversification
How the narrative shifted
- Capacity expansion as primary growth driver: Management is constrained by capacity, not demand; aggressively accelerating heavy-structure and PEB plant timelines to capture the opportunity.
- Heavy structures as next growth vector: Entry into heavy structures (data centres, high-rise) diversifies the end-market beyond industrial PEB, with the company pre-investing in certification and engineering capabilities.
- Export diversification with North America focus: After years of groundwork, North American orders are starting; the Canadian partnership and 100% export JV offer a higher-margin, lower-risk revenue stream outside India.
- Steel price cyclicality as managed risk: Steel prices follow a predictable annual cycle; the company manages through inventory pre-buying and project-by-project bidding, seeing no structural margin threat.
- Labour scarcity and site execution risk: The biggest future challenge is manpower availability at construction sites; the company is addressing it through certified erector networks, automation, and robotics, but it remains an industry-wide headwind.
- Margin improvement through value-chain positioning: By moving up the value chain (larger, more complex orders, heavy structures, exports) and improving internal productivity/automation, the company aims to expand margins from the current 9-10% EBITDA level.
- Working capital normalisation post growth spurt: Negative OCF in FY26 is framed as a temporary outcome of mix shift toward milestone-driven large orders and pre-buying of steel; management asserts it will correct with process tightening.
Operational commentary
- Andhra heavy structures plant Phase 1 on track for July/August 2026; Phase 2 & 3 accelerated, aiming for all three phases ready by end-FY27.
- Gujarat integrated PEB plant Phase 1 to commence commercial production July 2026; Phase 2 (building already complete) to follow once workforce trained.
- Order book stood at ₹1,700 Cr (all PEB) with ~9-month execution horizon; first heavy-structure order of ₹102 Cr received after quarter-end for a government building project.
- Land acquired for a sixth PEB plant in Gujarat, signaling next wave of capacity addition.
- Export orders in hand ~₹30-35 Cr; North American partnership gaining momentum; MoU signed for 50:50 JV to manufacture open web joy systems, with plant targeted by Aug-Sep 2027.
- Received necessary certifications for US/Canadian markets and invested in high-rise design engineering capabilities to bid for complex heavy-structure projects.
- Added new clients/key orders: CESC Green Power, Lodha Industrial, L&T (Hero Scooters EV project), Havells India, Bhuvaneshwari Food (Campa Cola), Craftsman Automation, among others.
- Capacity utilization at ~180,000 tons/year (PEB) with quarterly run-rate of ~40,000 tons; near-full utilization constraining order intake growth.
Analyst Q&A
Q. Steel price disruption and supplier concentration risk in Q4
Management cited 25-26 year relationships with SAIL, JSW, AMNS; no disruption in supply. Only minor site-clearance delays due to labour returning for elections/LPG crisis, impacting ~₹20-25 Cr revenue.
Q. Working capital cash outflow turning negative and timeline for normalization
Debtor rise attributed to larger orders with milestone-based payments from 'platinum clients'; inventory built to hedge steel price rise. Expects to turn positive 'very fast' with tightened payment terms but gave no specific date.
Q. Details and financials of the Canadian JV partner
Partner is a large private player in Canada operating in 20+ countries; management declined to disclose financials stating they are not public. Capabilities and go-to-market plan described.
Q. Why order book inflow growth is muted
Order book is already at 9-month coverage, matching deliverable capacity; intake deliberately controlled. As capacity increases, order inflow will rise; market demand not a constraint.
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