Interarch Building Products is a leading turnkey pre-engineered building (PEB) systems player. The company has received an INR 300 crore Letter of Intent (LoI) from a new customer for design, engineering, manufacturing, supply and erection of pre-engineered steel building systems. Following the news, Interarch Building shares rally 7% after the announcement.
Following the news, Interarch Building shares rally 7.9% intraday on 3 April 2025 to INR 1,675.75. The development reflects growing investor confidence in the company’s growth story, especially with the domestic steel infrastructure market expanding.
Order Details & Implications
As per the company’s stock exchange filing dated 2 April 2025, the LoI is comprehensive, from design and engineering to the erection of steel structures over a 12-month timeline. The order involves 30,000 metric tonnes (MT) of material and 25% of the contract value as an advance upon order confirmation.
The customer’s name is not disclosed due to commercial reasons, but the company has clarified that the customer is domestic and no promoter group entity has any interest in the transaction, making the order commercial.
This order will add significantly to Interarch’s topline, considering FY24 revenue was around INR 1,300 crore. It also aligns with the company’s 10–15% annual growth and mid-term doubling of revenues by FY28, with aggressive capacity expansion plans.
PEB Market on an Upward Trajectory
India’s pre-engineered buildings (PEB) industry is seeing a structural shift with adoption levels growing steadily due to cost efficiency, faster turnaround and sustainability of steel construction. According to industry estimates, the market is expected to grow from INR 19,500 crore in FY24 to INR 34,000 crore by FY29, giving enough room for growth to Interarch.
In this context, the current LoI not only confirms Interarch’s execution capabilities and brand recall in large industrial projects but also the sector’s momentum.
Notably, the stock made an all-time high of INR 1,865.05 per share, reflecting a multibagger return of 107%. Currently, it is trading around INR 1,600 per share with a correction of ~14% from its high price.
Interarch Building Post-IPO Performance
Interarch launched its IPO on 19 August 2024 with an issue size of INR 600.29 crore, and it comprises fresh and OFS. The IPO delivered an impressive 32.86% return on listing day.
Financial Snapshot
Interarch reported a 28.2% YoY growth in net profit to INR 28.2 crore in Q3 FY25 from INR 21.99 crore a year ago. Revenue from operations grew 15% YoY to INR 363.62 crore during the same period. On an operating basis, EBITDA increased 27.6% to INR 35.1 crore from INR 27.5 crore.
These numbers, along with robust order wins and capacity expansion, clearly show the company’s improving operating leverage and efficiency.
Capacity Expansion & Future Plans
Interarch is increasing production capacity to meet the growing demand. It announced a 40,000 MT capacity addition in March 2025, taking the total installed capacity to 2,00,000 MT and the utilisable capacity from 1,28,000 MT to 1,60,000 MT by Q2 FY26. A new manufacturing facility in Kheda, Gujarat, with a capex of INR 75–90 crore, is also in the works to strengthen its presence in western India.
Looking Ahead
The company will focus on sustainable revenue growth, margin expansion and order diversification. It is also in talks with Lenskart for what could be the world’s largest eyewear manufacturing facility in Telangana for INR 1,500 crore, though no final award has been given yet.
The INR 300 crore LoI win shows Interarch has a solid foundation in India’s industrial infrastructure space. With strong fundamentals, a growing order book, strategic capacity additions and consistent performance, the company is ready for re-rating.
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