Interarch Building Solutions Limited Releases Earning Call Transcript for Q3 FY26

Interarch Building Solutions Limited (Formerly known as Interarch Building Products Limited) has announced the release of the transcript for their Earning Call, which was held on Tuesday, February 3, 2026. The call focused on discussing the company's Un-Audited Financial Results for the quarter and nine months ended December 31, 2025.

The Managing Director, Mr. Arvind Nanda, expressed satisfaction with the company's performance, noting that it exceeded expectations. He highlighted the growing recognition of the pre-engineered building (PEB) industry as a distinct capital goods sector, emphasizing the company's capability to handle complex projects, including large-scale structures of up to 70-80 meters in height and large spans, with capacities for buildings up to 30,000 tons or INR300 crores.

The company is undertaking significant expansion plans, including two new plants: one for heavy structures in Andhra Pradesh (AP plant 2) and another for pre-engineered buildings in Gujarat. These expansions are planned to be operational in phases between June and December 2026. The decision to expedite these expansions, funded partly by a QIP (Qualified Institutional Placement) of INR100 crores, is driven by strong market demand. The Gujarat plant aims to replicate the company's successful model from its South and North operations, establishing a complete state-of-the-art facility. The heavy structures capacity is being increased to 40,000-45,000 tons to become a more serious player in the market.

Discussions also addressed competition, with Mr. Nanda clarifying that Chinese imports are not direct competitors for PEBs due to the comprehensive nature of PEB projects, which include design, engineering, and execution. He differentiated PEBs from commodity steel structures, emphasizing that PEB manufacturing is a niche product requiring specialized capabilities beyond that of traditional steel conglomerates. The company's strategy focuses on building strong client relationships, enhancing engineering capacity, and managing complex projects systematically, rather than competing solely on price.

Regarding order book growth, the company explained that while the Q-o-Q growth appears muted, it is a result of strong sales execution (INR160 crores more than the previous year) and a deliberate strategy to not overcommit capacity beyond a 9-10 month horizon. The company anticipates achieving INR1,900 crores in sales for the current fiscal year (FY26), exceeding its initial target of INR1,710-1,720 crores. Future projections include reaching INR2,060 crores in FY27 and INR2,500 crores by FY28, with potential to surpass these figures due to capacity expansions.

On the margin front, the company expects them to remain stable, with minor fluctuations of 0.1-0.2%. While increased capacity and expansion efforts require upfront investment in design, engineering, and sales teams, the company aims to offset these through internal economies of scale, improved purchasing power, and enhanced productivity. Exports are expected to offer better margins than the domestic market, with the US and Canada being particularly promising regions. The company has also implemented strategies for raw material price management, including maintaining a 2-month stock of materials and having visibility on prices for up to 4 months through supplier orders.