Interarch Building Products Limited (INTERARCH) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 0.52%
• Average Volume (3M): 4.19K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.20
• Revenue Growth: 27.89%
• EPS Growth: 35.22%
• Country: IN
• Employees: 2,114
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): 22.20
• Shares Outstanding: 16,771,852
• 10 Day Avg. Volume: 4,922
• 30 Day Avg. Volume: 4,194
• PEG Ratio: 0.70
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 1.66
• P/FCF Ratio: -107.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 80.15
• Revenue Forecast (FY): ₹18.74B

• Rating: 70 Outperform
• Price Target: ₹2,086.00 ▼(-9.22% Downside)
• Action: Upgraded Date: 11/08/25
• Date: Action: Upgraded 11/08/25

Interarch Building Products Limited shows strong financial performance with impressive revenue and profit growth, supported by a solid equity base. However, liquidity concerns due to negative free cash flow and potential overvaluation are notable risks. Technical indicators suggest strong momentum, but overbought conditions could lead to a short-term correction.

Positive Factors

High gross and operating margins

High gross (39.7%) and strong operating margins (EBIT 29.7%, EBITDA 10.6%) indicate durable production efficiency and operating leverage. These margin levels support pricing power, internal reinvestment and resilience to demand volatility over multiple quarters.

Sustained revenue growth

A TTM revenue growth rate of 15.57% demonstrates sustained top-line expansion and continuing market demand. Persistent revenue growth underpins scale economies, supports margin sustainability, and provides a larger base for predictable reinvestment and strategic initiatives.

Conservative capital structure

A 67.5% equity ratio and extremely low debt-to-equity (0.026) show minimal leverage and financial flexibility. This conservative balance sheet reduces refinancing risk, enables capex funding or acquisitions without heavy debt, and strengthens resilience through downturns.

Negative Factors

Negative free cash flow

Free cash flow of -225.34 million driven by elevated capex is a structural concern. Persistent negative FCF can require external financing, limit internal funding for growth or dividends, and raises execution risk if new assets don't generate expected cash returns.

Weak cash conversion

An operating cash flow to net income ratio of 0.50 means only half of accounting profits convert to cash. This weaker cash conversion signals earnings quality risk, greater sensitivity to working capital swings, and potential strain on liquidity during slower sales periods.

Net margin compressed vs gross margin

A wide gap between a 39.7% gross margin and a 7.3% net margin suggests sizable operating, financing or tax costs erode profitability. This compression limits retained earnings for reinvestment and exposes results to cost inflation or pricing pressure risks.

Interarch Building Products Limited Business Overview & Revenue Model

Company Description

Interarch Building Products Limited provides pre-engineered steel construction solutions in India. It offers pre-engineered steel building (PEB) contracts; and metal ceilings and corrugated roofing comprising metal suspended ceiling systems, metal roofing and cladding systems, and permanent/metal decking over steel framing. The company also provides PEB steel structures, including primary and secondary framing systems; light gauge framing systems; and complete PEBs, such as non-industrial PEB buildings for non-industrial use comprising farmhouses and residential buildings. Interarch Building Products Limited was incorporated in 1983 and is based in Noida, India.

How the Company Makes Money

INTERARCH generates revenue primarily through the sale of its pre-engineered building systems, which include steel structures, roofing and cladding products, and related accessories. The company engages in direct sales to construction firms, developers, and government projects, establishing strong partnerships with key players in the construction industry. Additionally, INTERARCH may earn income through design and engineering services, project management, and after-sales support, thereby creating multiple revenue streams. Strategic collaborations with suppliers and contractors further enhance its market reach and profitability.

Interarch Building Products Limited Financial Statement Overview

Summary

Interarch Building Products Limited demonstrates strong revenue and profit growth with robust profitability margins and a solid equity base minimizing financial risk. However, potential liquidity constraints due to negative free cash flow should be monitored closely.

Income Statement

Interarch Building Products Limited demonstrates a robust income statement performance with a significant Gross Profit Margin of 39.7% and a healthy Net Profit Margin of 7.3%. The company's TTM (Trailing-Twelve-Months) revenue growth rate is 15.57%, indicating strong top-line expansion. EBIT and EBITDA margins are impressive at 29.7% and 10.6% respectively, showing efficient operational management and profitability.

Balance Sheet

The balance sheet of Interarch Building Products Limited shows a strong equity position with an Equity Ratio of 67.5%, indicating a stable financial structure. The Debt-to-Equity Ratio is low at 0.026, reflecting minimal leverage and low financial risk. Return on Equity (ROE) stands at 14.35%, showcasing effective utilization of shareholders' equity in generating profits.

Cash Flow

Cash flow performance is mixed with a negative Free Cash Flow of -225.34 million in the latest year, primarily due to high capital expenditures. However, the Operating Cash Flow to Net Income Ratio of 0.50 indicates that operating cash generation is moderate. The Free Cash Flow to Net Income Ratio is negative, suggesting potential liquidity challenges if the trend continues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.38B	14.54B	12.76B	11.24B	8.35B	5.76B
Gross Profit	5.73B	5.85B	2.91B	1.49B	649.80M	362.48M
EBITDA	1.67B	1.57B	1.25B	1.17B	375.58M	185.23M
Net Income	1.16B	1.08B	862.62M	814.63M	171.33M	64.37M
Balance Sheet
Total Assets	0.00	11.14B	7.55B	6.75B	5.44B	4.69B
Cash, Cash Equivalents and Short-Term Investments	2.04B	2.04B	664.32M	686.72M	525.93M	678.84M
Total Debt	0.00	198.79M	133.86M	177.28M	78.47M	61.51M
Total Liabilities	-7.51B	3.63B	3.10B	2.76B	2.25B	1.69B
Stockholders Equity	7.51B	7.51B	4.45B	3.99B	3.18B	3.00B
Cash Flow
Free Cash Flow	0.00	-225.34M	563.33M	176.38M	223.08M	336.30M
Operating Cash Flow	0.00	535.59M	815.23M	312.86M	261.80M	388.32M
Investing Cash Flow	0.00	-2.23B	-327.60M	-189.88M	90.81M	-349.87M
Financing Cash Flow	0.00	1.92B	-458.49M	62.60M	-1.42M	-34.78M

Interarch Building Products Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2297.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INTERARCH, the sentiment is Negative. The current price of 2297.8 is above the 20-day moving average (MA) of 1991.81, above the 50-day MA of 2105.73, and above the 200-day MA of 2149.43, indicating a bearish trend. The MACD of -52.87 indicates Positive momentum. The RSI at 39.68 is Neutral, neither overbought nor oversold. The STOCH value of 22.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INTERARCH.

Interarch Building Products Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTERARCH	70 Outperform	―	23.18	―	0.52%	27.89%	35.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VISAKAIND	59 Neutral	₹5.36B	8.94	―	0.74%	6.79%	―
SALSTEEL	57 Neutral	₹3.96B	-64.32	―	―	0.19%	-2962.74%
MAHASTEEL	54 Neutral	₹12.52B	117.00	―	―	11.83%	124.74%
EVERESTIND	49 Neutral	₹6.19B	-13.29	―	0.50%	-3.11%	-331.77%
SHYAMCENT	49 Neutral	₹1.12B	-7.93	―	―	-41.73%	-37.19%

Interarch Building Products Limited Corporate Events

Interarch Board Clears Q3 FY2025 Unaudited Results; Auditors Flag Tax Search Without Modifying View

Interarch Building Solutions Limited has announced that its Board of Directors has approved the standalone unaudited financial results for the quarter ended 31 December 2025, following a review and recommendation by the Audit Committee in compliance with SEBI’s listing regulations. The statutory auditors, S.R. Batliboi & Co. LLP, issued a limited review report stating that nothing has come to their attention to suggest any material misstatement in the interim financial results, while drawing attention to an earlier income tax search and survey conducted in August 2025, though their conclusion remains unmodified, indicating no immediate change to the reported financial information or disclosure practices.

Interarch Receives Procedural Tax Notice, Says No Demand or Penalty Yet

Interarch Building Solutions Limited has disclosed that it, along with certain key managerial and senior management personnel, has received a notice from the Income Tax Department under Section 158BC of the Income-tax Act, 1961, seeking a return of undisclosed income for the block period from 1 April 2019 to 17 October 2025. The company emphasized that the notice is procedural in nature, issued in line with statutory provisions, and that no tax demand, penalty, or adverse order has been passed so far against the company or its executives. Interarch said it is taking appropriate steps to comply within prescribed timelines and indicated that, as of now, there is no quantifiable financial or operational impact arising from this notice for the listed entity.