Interarch Build. Q1 FY27 Results (NSE: INTERARCH)
Signal: Margin pressure
The read
Revenue grew 20.7% YoY but EBITDA margin contracted 170 bps to 9.2% as project mix shifted toward higher erection-cost work, muting PAT; capacity expansion via Gujarat plant and QIP approval signal growth ambitions for FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹459.65 Cr | +20.7% | -8.7% |
| EBIT | ₹38.37 Cr | -0.1% | |
| Net profit | ₹28.25 Cr | -0.5% | |
| EPS | ₹16.84 | -1.2% | |
| EBIT margin | 9.2% |
P&L walk
Revenue growth of 20.7% YoY driven by robust execution, but gross margin contracted 140 bps as higher erection costs offset a sharp decline in raw material cost, resulting in EBITDA margin drop of 170 bps to 9.2%; PAT flat at ₹28.25 Cr.
Key positives
- Revenue grew 20.7% YoY to ₹459.65 Cr, maintaining strong execution momentum.
- Raw material cost as a percentage of revenue dropped sharply from 66.3% to 60.0%, providing a large tailwind on input costs.
- Board approved a 1:5 stock split to improve affordability and liquidity, and raised QIP target from ₹100 Cr to ₹250 Cr to fund growth capex.
- New Gujarat PEB plant commenced commercial production in July 2026, adding 20,000 MT capacity.
Key concerns
- Gross margin contracted 140 bps YoY and EBITDA margin fell 170 bps to 9.2% as higher erection & installation charges offset raw material cost savings.
- PAT flat at ₹28.25 Cr despite 20.7% revenue growth, indicating margin headwinds eating into operating leverage.
- Depreciation rose 28.5% YoY and finance cost rose 27.9%, pressuring pre-tax profit even as new capacity is not yet fully contributing.
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