ICICI Securities’ retail research division has initiated coverage on Interarch Building Solutions (INTBUI) with a BUY rating and a target price of INR 2,600, implying an upside potential of 36% from the current market price of INR 1,907 (as of 16 October 2025). The brokerage expects Interarch’s revenues, EBITDA, and PAT to grow at a robust 17%, 23%, and 20% CAGR, respectively, over FY25–FY28.
The report, titled “Pre-Engineered for Growth,” underscores Interarch’s strong industry positioning, operational excellence, and expansion drive in an underpenetrated market segment that offers substantial room for growth.
Interarch Building Solutions: Company Snapshot
Founded in 1983 and listed in August 2024, Interarch Building Solutions is India’s second-largest turnkey provider of pre-engineered steel buildings (PEBs) with a capacity exceeding 200,000 metric tonnes (MT) and a market share of approximately 7%. The company’s end-to-end capabilities span design, manufacturing, and project management for large-scale steel construction projects.
Interarch Building Solutions serves a wide range of industries, including automotive, logistics, renewable energy, aviation, defense, and infrastructure, with repeat orders from over 80% of its client base — a testament to its reliability and execution track record.
ICICI Direct Coverage on Interarch Building Solutions: Strong Growth Catalysts
1. Expanding Capacity Amid Rising Demand
ICICI Direct highlights Interarch’s aggressive expansion strategy — increasing its total capacity by 65% between FY25 and FY30, from just over 200,000 MT to 266,000 MT. The company recently commissioned a 40,000 MT expansion in Q2 FY26 and has two new projects underway:
- A 25,000 MT steel plant in Andhra Pradesh (Q2 FY27 commissioning, INR 100 crore investment).
- A 40,000 MT facility in Gujarat, expected by FY28.
The Andhra Pradesh plant, announced in late September 2025, spans 20 acres in Attivaram with a 17,000 sq. m. built-up area. It will cater to high-growth sectors like data centres, semiconductor fabs, EV and battery manufacturing, and multi-storey steel buildings, generating over 200 new jobs.
According to CEO Manish Garg, the new facility “will enable faster construction of multi-storey steel buildings that are efficient, sustainable, and resilient against extreme climatic conditions.”
2. Industry Tailwinds: PEB Market Poised for 10% CAGR
- The Indian pre-engineered building (PEB) industry — currently valued at INR 21,000 crore — is expected to grow at 9.5–10.5% CAGR, reaching INR 33,000–34,500 crore by FY30.
- Driven by surging industrial construction, infrastructure expansion, and the shift from traditional RCC structures to steel-based designs, the sector’s low penetration (only 3–5%) presents a vast growth runway.
Interarch, alongside market leader Kirby, is positioned to outpace industry growth due to its scale, reputation, and early-mover advantage in high-rise and heavy steel structures.
3. Financial Strength and Efficiency
- The company boasts a net debt-free balance sheet, supported by a disciplined approach to cost management and working capital.
- Interarch Building Solutions plans to invest ~INR 200 crore in capex over the next 2–3 years, fully funded through internal accruals.
- Return ratios are expected to improve steadily, with RoCE rising from 16.2% in FY25 to 20.3% in FY28, and RoE increasing from 14.4% to 16.2% over the same period.
ICICI Direct values Interarch Building Solutions at 23x FY28E P/E, emphasizing its strong cash generation and improving operating leverage as new capacities become operational.
Financial Highlights
| Metric | FY25 | FY28E | CAGR (FY25–FY28E) |
| Revenue | 1,453.8 | 2,313.1 | 16.7% |
| EBITDA | 136.2 | 255.5 | 23.3% |
| Net Profit | 107.8 | 187.2 | 20.2% |
| EBITDA Margin | 9.4% | 11.0% | — |
| EPS | 64.8 | 112.5 | — |
| P/E (x) | 29.4 | 16.9 | — |
Risks to Outlook
ICICI Direct flags a few potential headwinds:
- Dependence on private sector capex, which may slow during economic downturns.
- Volatility in steel prices, which could pressure margins.
- Low entry barriers in the PEB industry, leading to competition from smaller players.
- Execution risks associated with rapid capacity expansion.
Strategic Outlook
Interarch’s focused execution, diversified client base, and capacity build-out position it to capture India’s accelerating shift toward steel-intensive construction. The company’s upcoming Andhra Pradesh and Gujarat plants will extend its national footprint and reinforce its leadership in high-rise, data centre, and industrial segments.
ICICI Direct’s analysts — Ronald Siyoni and Riddhi Gupta — summarize the thesis succinctly:
“Interarch is slated to accelerate its growth trajectory backed by strong demand tailwinds, well aided by aggressive capacity expansion plans.”
Conclusion
As India’s steel consumption and industrial construction surge, Interarch Building Solutions stands at the forefront of a structural transformation in how India builds. With a robust order pipeline exceeding INR 6,500 crore, disciplined financials, and a clear growth roadmap, the company is poised for sustained outperformance — aligning perfectly with ICICI Direct’s conviction in a 36% upside potential over the next 12 months.
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