Interarch Building Products Surges 8% After Securing ₹300 Crore Order for Pre-Engineered Steel Building Systems
Interarch Building Products Ltd, a leading player in pre-engineered steel construction solutions, witnessed a remarkable 8% surge in its share price during Thursday’s trading session. This sharp rally came after the company announced securing a Letter of Intent (LoI) worth ₹300 crore for the design, engineering, manufacturing, supply, and erection of Pre-Engineered Steel Building (PEB) Systems.
Let’s delve deeper into this development, industry outlook, financial performance, and future growth potential.
Stock Performance and Market Reaction
Interarch’s stock saw strong buying interest after the announcement, reaching an intraday high of ₹1,675.75 per share, reflecting a 7.9% gain. The company’s market capitalization currently stands at ₹2,775 crore.
Over the past six months, the stock has delivered an 18.4% return, while in the last one year, investors have seen a solid 28.6% gain. The uptrend suggests growing investor confidence in the company’s long-term prospects.
| Stock Performance | Value |
|---|---|
| Market Cap | ₹2,775 Cr. |
| Current Price | ₹1,668 |
| 52-Week High/Low | ₹1,925 / ₹1,110 |
| Stock P/E | 28.1 |
| Dividend Yield | 0.00 % |
₹300 Crore Order: A Game Changer for Interarch
Interarch Building Products Ltd revealed in a press release on April 2, 2025, that it has received a Letter of Intent (LoI) from a new customer for a project valued at over ₹300 crore.
- The project involves design, engineering, manufacturing, supply, and erection of Pre-Engineered Steel Building (PEB) Systems.
- Due to commercial confidentiality, the customer’s identity has not been disclosed.
- The execution timeline for this contract is 12 months.
This order strengthens Interarch’s position in the rapidly growing PEB sector and further solidifies its reputation as a trusted provider of high-quality, sustainable steel structures.
Industry Outlook: Strong Growth Ahead
The Indian Pre-Engineered Steel Building (PEB) market is poised for significant expansion:
- The sector is projected to grow from ₹195 billion in FY24 to ₹330-340 billion by FY29.
- The adoption of PEBs in India is still low, providing substantial room for growth.
- Increasing awareness of PEB advantages over traditional RCC structures will drive demand.
- Government policies and infrastructure projects will further accelerate industry growth.
This presents a huge opportunity for Interarch, as the company is well-positioned to benefit from this expanding market.
Capacity Expansion and Future Plans
Interarch has been making strategic investments to enhance its manufacturing capabilities:
- In March 2025, the company announced an expansion plan to increase its production capacity.
- The existing installed capacity is 1,61,000 MT, and an additional 40,000 MT is being added.
- By mid-2025, the company aims to achieve a total installed capacity of 2,00,000 MT, enhancing efficiency and output.
Interarch is targeting a 10% revenue growth in FY25, with FY26 growth expected to be in the 10-15% range.
Financial Performance: Strong and Sustainable Growth
Interarch has demonstrated consistent financial performance, with solid revenue and profit growth:
| Financial Metrics | Q3FY24 | Q3FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹316.3 Cr. | ₹363.6 Cr. | 15% |
| EBITDA | ₹27.5 Cr. | ₹35.1 Cr. | 27.6% |
| PAT (Profit After Tax) | ₹22 Cr. | ₹28.2 Cr. | 28.2% |
The company’s Return on Capital Employed (ROCE) stands at 28.5%, and Return on Equity (ROE) is 20.4%, indicating efficient capital utilization and strong profitability.
| Financial Ratios | Value |
|---|---|
| ROCE | 28.5 % |
| ROE | 20.4 % |
| Debt to Equity | 0.03 |
| Price to Book Value | 4.10 |
| EPS | ₹64.0 |
| Free Cash Flow (3Y) | ₹97.1 Cr. |
| Debt | ₹20.1 Cr. |
The low debt-to-equity ratio of 0.03 suggests that Interarch is financially strong and not heavily reliant on borrowed capital.
About Interarch Building Products Ltd
Interarch is a leader in turnkey pre-engineered steel construction solutions in India. The company serves prominent clients such as TATA, JSW, Grasim, Godrej, Asian Paints, Kia Motors, ITC, CEAT, PepsiCo, and HUL.
With five manufacturing facilities across Uttarakhand, Tamil Nadu, and Andhra Pradesh, the company continues to expand its market presence.
Conclusion: A Promising Future for Interarch
The ₹300 crore order win highlights Interarch’s strong industry positioning and growing demand for PEB solutions. With strategic expansions, a solid financial track record, and an increasing order book, the company is well-positioned for sustained growth.
Investors looking for high-growth, infrastructure-linked stocks may find Interarch an attractive long-term opportunity.
Q&A: Key Takeaways from the Article
Q1: Why did Interarch’s stock rise by 8%?
A: The stock surged after the company secured a ₹300 crore order for pre-engineered steel buildings.
Q2: What is the total market capitalization of Interarch?
A: Interarch’s market capitalization is ₹2,775 crore.
Q3: What is the execution timeline for the ₹300 crore order?
A: The order is expected to be executed within 12 months.
Q4: How much capacity expansion is planned by Interarch?
A: The company plans to increase capacity from 1,61,000 MT to 2,00,000 MT by mid-2025.
Q5: What is the financial growth trend of Interarch?
A: Revenue grew by 15% YoY, EBITDA by 27.6%, and PAT by 28.2% in Q3FY25.
Q6: How does Interarch’s financial health look?
A: The company has low debt (₹20.1 Cr.), a strong ROCE (28.5%), and a high ROE (20.4%).
Q7: What is the industry outlook for Pre-Engineered Steel Buildings?
A: The industry is expected to grow from ₹195 billion in FY24 to ₹330-340 billion by FY29, driven by increasing adoption and policy support.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.