Precision Engineering Meets Infrastructure Growth
An in-depth look at an engineering and infrastructure company with a robust order book, expanding footprints in domestic and international markets, and improving margins.
COMPANY OVERVIEW
Established in 1983, Interarch is a specialist in Pre-Engineered Buildings (PEBs) offering design, engineering, manufacturing & installation of steel structures across India.
A leading turnkey PEB solution provider, enabling industries to scale fast with efficient steel structures. They’re India’s 2nd player with a 15% market share (FY24) and a solid proxy to private capex.
MANUFACTURING CAPACITY
The company operates four integrated manufacturing facilities across Andhra Pradesh, Tamil Nadu, and Uttarakhand. With 4 integrated plants across AP, TN & Uttarakhand, Interarch has an installed capacity of 161,000 MTPA with utilizable capacity of 135,000 MTPA
They’ve acquired land in Gujarat for a 5th plant, which will boost total capacity to 200,000 MTPA positioning them to meet growing PEB demand.
PROJECTS
Delivered projects across sectors:
E-commerce warehouse
Paint production lines
FMCG units
Indoor stadium
Cement Plants
Their scale, speed & sector diversity make them a key player in India’s infra growth story
BEYOND PEB
Beyond PEBs, Interarch has a strong product lineup under its TRAC brand:
Suspended Ceilings
Eco-friendly & stylish — used in airports, offices, hospitals.
Roofing & Cladding
TRACDEK systems made from galvalume/galvanized steel. Available as single-skin or insulated sandwich panels.
Metal Decking
TRACDEK Bold-Rib acts as both floor support & permanent shuttering — reducing reinforcement needs
REVENUE SPLIT
STRENGTHS
Strong Customer Relationships
80% of Interarch’s business comes from repeat orders - backed by Tier-1 clients like Grasim, Asian Paints, ITC & Reliance
2) Ability to Mitigate Steel Price Fluctuation
Even in the event of rising steel prices, the company is well - positioned to manage the impact due to its control over the execution process. With an execution timeline of 3-5 months, there is limited exposure to price volatility. Additionally, any price increase can be passed on to customers through escalation clauses.
3) Strategic Partnership with JSPL
Interarch has entered into strategic partnership with Jindal Steel and Power for construction of multi story buildings, data centers and heavy structures. The collaboration combines Interarch’s expertise in design, engineering, manufacturing and JSPL’s advanced manufacturing facilities for heavy structure.
Currently interarch have a requirement of about 20% for heavy structure so they will rely on heavy structure.
4) Robust Balance Sheet and Financial Metrics
The company maintains a negative debt position, indicating that its cash reserves exceed its debt obligations.
They have a ROCE of 24% and their EBITDA margin of 9% is one of the highest in the industry.
5) Well Diversified Geography Presence
The company operates manufacturing plants in Tamil Nadu, Uttarakhand and Andhra Pradesh, with plans to set up additional facilities in Gujarat. This broad presence across the North, South and West regions helps mitigate regional concentration risks. Additionally, lower freight costs enhance competitiveness.
CAPEX PLAN
Manufacturing Facilities: 5 state-of-the-art plants, 4 of which are fully integrated PEB units (Sriperumbudur–TN, Pantnagar–UK, Athivaram–AP, Kichha–UK).
Current Capacity: Installed capacity stands at 161,000 MT, with an effective utilization of ~135,000 MT (80–85% utilization). With ongoing expansions (AP Phase 2 and the new Kichha line), capacity is expected to reach 200,000 MT within a month.
Further Expansion: Additional 20 acres acquired adjacent to Athivaram (AP) for a heavy fabrication line by Sep 2026. Land in Gujarat acquired for the next plant.
ORDER BOOK
As of April 30, 2025, the company boasts a healthy order book of ₹1,646 crores, underscoring sustained demand momentum. Notably, it has secured the largest-ever PEB order in India, valued at over ₹300 crores, a landmark achievement that positions the company in a different league.
The order book composition also signals a strategic shift up the value chain. 50% of current orders are now above ₹20 crores, a significant jump from the average ₹3.5–4 crore per order just three years ago to ₹10–11 crore today.
Execution timelines remain efficient, with most orders, including the marquee ones scheduled for completion within 9–12 months, ensuring visibility on near-term revenue realization.
FUTURE OUTLOOK
Revenue Guidance: On track to achieve ₹2,400–2,500 crores turnover by FY 27–28. Targeting 17.5% topline growth in FY 26, 20% in FY27 as new capacities come online.
Order Book Execution: Current order book to be executed within 9–12 months; no long-dated orders.
Sustained Dividend Policy: Maiden dividend declared; intention to continue and increase payouts.
Capacity Ramp-Up: Utilizable capacity for new lines conservatively pegged at 80% initially; expected to improve as plants stabilize.
RISK
Cyclicality in the Demand
Interarch is exposed to demand cyclicality, as its business depends heavily on economic cycles and industry capex plans impacting revenue stability and overall performance during downturns.
Margin Pressure
Interarch also faces margin pressure from volatile steel prices, which affect input costs and profitability making it challenging to maintain stable financial performance.
Dependence on Repeat Order
Repeat orders made up 81% of Interarch’s FY24 revenue. While this shows strong customer loyalty, it also creates risk of losing key clients or failing to add new ones could impact future growth and revenue stability.
FINANCIALS
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Disclosure
This article is for educational purposes only and does not constitute investment advice. Readers should consult a SEBI-registered advisor before making investment decisions.
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