Introduction
Interarch Building Solutions Ltd. (“Interarch”) is India’s leading turnkey provider of pre‑engineered steel buildings (PEBs). Founded in 1983, the company has grown from a two‑employee firm into a vertically integrated player with over 2,000 employees and five advanced manufacturing plants. It handles design, engineering, manufacturing and erection of PEBs and serves clients ranging from large conglomerates to SMEs across industrial, warehousing and infrastructure segments.
The PEB market in India is experiencing robust growth driven by government manufacturing incentives, e‑commerce‑led warehousing demand and the need for cost‑effective, sustainable construction. Interarch is well positioned to benefit from these trends due to its strong order book (₹1,646 cr as of Apr 2025) and capacity expansion plans.
Interarch has delivered exceptional return to its shareholder returning almost 100% post listing in Aug’24 despite subdued market conditions. At ₹2,347.80 (24 Jul 2025), Interarch’s shares trade at ~35.9× FY25 EPS (₹68.03) and a market‑capitalization of ~₹3,907 cr.
While the valuation is rich, business outlook looks promising because of its earnings momentum (FY25 net profit ↑25 % YoY), strong repeat business (~82 % of the order book), and exposure to secular growth sectors such as renewable energy, lithium‑ion batteries, semiconductors and data centers. Let’s dig deeper
Company Overview
Founded in New Delhi in 1983 by Arvind Nanda and Gautam Suri, Interarch started with only two employees. Over four decades it has grown into India’s largest turnkey PEB solution provider with over 2,000 employees, five manufacturing facilities and a market capitalization around ₹3,400 crores. Interarch integrates the entire PEB value chain—concept design, structural engineering, steel fabrication, project management, installation and erection—allowing it to deliver customised steel structures within compressed timelines.
The company operates four major manufacturing plants: Sriperumbudur (Tamil Nadu), Pantnagar and Kichha (Uttarakhand) and a new unit at Athivaram (Andhra Pradesh). The Sriperumbudur plant supports growth in South India and produces PEB solutions for sectors such as semiconductors and renewables; key clients include Tata Semiconductors, Agratas Energy, Havells and Blue Star. Interarch’s research & development center in Chennai uses AI and automation to optimize manufacturing, reducing project timelines by up to 30 %.
Products and clients
Interarch’s customized PEB structures using primary framing systems, secondary and tertiary framing, standing‑seam roofs, wall claddings and light‑gauge steel systems. Its solutions span industrial factories, warehouses, logistics parks, power‑plant buildings, airports, stadiums, cold storages and multi‑story steel buildings.
On the FY25 earnings call, management explained that Interarch is a pure‑play PEB company; clients supply the land and basic civil foundation, while Interarch performs detailed design using specialized software (STAAD‑PRO, MBS, TEKLA), procures different grades of steel (hot rolled, cold rolled, light gauge), fabricates components in‑house and erects the structure.
The client base is diversified. Major industrial and warehousing customers include IndoSpace, Havells, Saint Gobain, Balrampur Chini Mills, Reliance, Vikram Solar, Tata Projects, Blue Star and Agratas Energy. Repeat orders account for ~82 % of the ₹1,646 cr order book as of Apr 2025 underscoring customer stickiness and service quality.
Strategy and expansion
Interarch is expanding capacity to capture growing demand. It currently utilizes ~85 % of its 200,000 ton manufacturing capacity and expects full utilization to generate ₹1,900–2,000 cr revenue. Two new plants, one in Gujarat and another in Andhra Pradesh are scheduled to start operations around Jul 2025, which will lift capacity and allow the company to accept longer‑duration orders. The company has also opened additional engineering offices and installed rooftop solar panels at plants to reduce power costs.
Interarch is diversifying beyond traditional industrial PEBs into electric‑vehicle infrastructure, renewable‑energy projects, data centers, semiconductor fabs and multi‑story steel buildings. This strategy is reflected in recent project wins: in Jan 2025 the company secured two large orders worth ₹221 cr—one to build Tata Semiconductor’s assembly and testing plant in Jagiroad, Assam and another to construct Agratas Energy’s lithium‑ion battery plant in Sanand, Gujarat. These projects highlight Interarch’s capabilities in high‑tech and sustainable sectors and are executed in partnership with Tata Projects as EPC contractor
Industry overview
PEBs are factory‑fabricated steel structures designed to be erected quickly on‑site. Compared with conventional concrete buildings, PEBs offer 30–50 % shorter construction times, lower costs, scalability and improved sustainability—properties that make them attractive for industrial, warehousing and infrastructure projects. Interarch’s management notes that the PEB industry uses advanced design software and different grades of steel to deliver structures tailored to client requirements.
Market size and growth drivers :
According to IMARC Group, the Indian pre‑engineered buildings market was valued at USD 2.01 billion in 2024 and is expected to reach USD 6.33 billion by 2033, implying a 12.5 % CAGR during 2025‑33. Growth is propelled by:
Rapid urbanization and infrastructure expansion: Industrial corridors, smart‑cities and highway projects are driving demand for quick and cost‑effective structures
Warehousing and logistics boom: E‑commerce and third‑party logistics players have led to absorption of 64.5 million sq ft of industrial and warehousing space in 2024, up 30 % YoY. PEBs enable rapid construction of warehouses and distribution centers and offer energy‑efficient design for cold storage and green warehousing.
Government initiatives – Programs such as Make in India and Production‑Linked Incentive (PLI) schemes have increased manufacturing investments; PLI investments totaled ₹1.46 lakh cr as of Aug 2024 and generated sales of ₹12.5 lakh cr. Manufacturing projects require large, durable and economical steel structures, benefiting PEB companies.
Sustainability focus – PEBs use recyclable steel and can integrate solar panels and natural ventilation, aligning with green building mandates. Interarch’s rooftop solar installations at its plants reduce energy costs and carbon footprint
These trends provide a favorable backdrop for Interarch. With its integrated design and manufacturing capability, established brand and order execution record, the company is well positioned to capture incremental market share.
Financial performance:
The company’s FY25 financials show strong growth and margin expansion:
Q4 FY25 vs Q3 FY25
Q4 FY25 performance was strong both sequentially and YoY:
Order book and capacity:
Interarch’s order book climbed to ₹1,646 cr by Apr 30 2025, with repeat orders accounting for 82 %. Management indicated that the new capacity additions (Gujarat and Andhra) should push annual revenue potential to ₹1,900–2,000 cr at 85 % utilization. The order pipeline includes large projects from Tata Agratas (lithium‑battery plant), Tata Electronics (semiconductor plant in Assam), Hindalco/Birla Copper, Vikram Solar and data centers
Valuation and peer comparison
At ₹2,347.80 per share on 24 Jul 2025, Interarch’s market capitalization is ₹3,907 cr. With FY25 EPS of ₹68.03, the stock trades at a P/E of 35.9×. The price‑to‑book ratio is 5.15× (book value ₹451.56 per share)and the market‑cap‑to‑sales ratio is ~2.7× (₹3,907 cr / ₹1,474 cr). The company announced a maiden dividend of ₹12.5 per share, giving a modest yield of 0.53 %
Stock price returns have been strong—Interarch’s shares delivered 39.6 % returns over the past three months and 50.5 % over the past six months, significantly outperforming the Nifty index. However, the stock is now trading near its all‑time high (₹2,410 on 23 Jul 2025) and has risen >110 % from the 52‑week low of ₹1,110.65
Peer comparison
To benchmark valuations, we compare Interarch with Pennar Industries and Technocraft Industries (TIIL). The table below summarizes these 3 companies on key parameters:
Premium valuation of Interarch is justified given its superior ROE and growth rate. The valuation premium also reflects its diversification into high growth segment. Global building‑materials companies typically trade at 10–25 × earnings. Thus Interarch’s valuation implies investors are pricing in industry leading growth with superior margin.
Key risks
Cyclical capex spending – PEB demand depends on capital‑expenditure cycles in manufacturing, warehousing and infrastructure. Any slowdown in private or public capex could delay orders and reduce utilization. Management acknowledged a slowdown in private capex but said order enquiries remain robust.
Raw‑material volatility – Steel prices directly affect margins. Although contracts often have price‑variation clauses, rapid price swings could squeeze profitability or delay orders.
Execution risk – Large projects (e.g., semiconductor and battery plants) require timely execution. Delays in commissioning new capacity (Gujarat/Andhra) could constrain revenue growth and lead to missed opportunities.
Valuation risk – At ~36 × earnings, the stock embeds high growth expectations. Any earnings miss or macro slowdown could lead to significant de‑rating.
Summary and Conclusion:
Interarch Building Solutions has transformed itself into a high‑growth PEB specialist with strong order visibility, integrated capabilities and exposure to new‑age sectors. FY25 results demonstrate improving operating leverage, while the order book suggests revenue momentum will continue. Capacity expansion and technological adoption further enhance growth prospects. However, valuations are stretched relative to traditional steel peers; investors are paying a premium for its niche positioning and growth pipeline.
Accumulating shares near key moving averages or within the VWAP (Volume Weighted Average Price) zone may be advantageous for long-term investors. With an anticipated 20% profit growth for FY26, projected FY26 EPS stands at approximately 78. Applying a 36x P/E multiple, this translates to a target price of about 2,800, indicating an estimated upside potential of 21% over the next year. Going forward, timely commissioning of new facilities and sustained order inflows from high-tech sectors will be crucial to justify the current premium valuation. Investors are advised to monitor these operational milestones closely.
Disclaimer::This research note is issued solely for educational and informational purposes. It does not constitute investment advice or a solicitation to buy, sell or hold any security. Readers should assess their own risk appetite and consult their SEBI‑registered investment advisor before acting on any information herein. Coinstreet and its affiliates may, from time to time, have positions in the securities discussed or may have provided advisory services to clients regarding them. While every effort is made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information.
