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): 26.0
• Beta (1Y): 1.19
• 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): ₹18.81B

• Rating: 63 Neutral
• Price Target: ₹1,843.00 ▼(-19.79% Downside)
• Action: Downgraded Date: 03/10/26
• Date: Action: Downgraded 03/10/26

The score is supported primarily by strong financial performance (healthy margins, solid growth, and minimal leverage), but is held back by negative free cash flow and a clearly bearish technical setup with the stock trading below all major moving averages and weak momentum. Valuation is neutral-to-slightly expensive given the P/E and low dividend yield.

Positive Factors

High Profitability

Sustained high gross (39.7%) and healthy net margins (7.3%) indicate durable pricing power and efficient cost structure across cycles. Combined with double-digit TTM revenue growth, this supports long-term cash generation potential and resilience versus lower-margin peers.

Very Low Leverage

Extremely low debt and a strong equity ratio materially reduce financial risk and interest burden, providing flexibility to fund growth or weather downturns. A mid-teens ROE shows management is generating good returns on equity without relying on leverage.

Strong Revenue Growth Trend

Reported revenue growth (35% in fundamentals, 15.6% TTM in income summary) signals sustained top-line momentum and market demand. Persistent growth gives scale benefits, supports margin retention, and underpins reinvestment or market share gains over months.

Negative Factors

Negative Free Cash Flow

Material negative free cash flow driven by capital spending reduces internally available funds to service growth, dividends, or unexpected stress. If continued, it could force external financing or slow organic expansion, raising medium-term execution risk.

Weak Cash Conversion

Only half of accounting profits convert to operating cash, implying earnings quality issues from working capital or non-cash items. Persistently low conversion constrains free cash flow even with strong reported margins, limiting durable cash availability.

High CapEx Burden

Ongoing elevated capital expenditures are weighing on free cash flow and may be required to sustain growth. While investments can be strategic, sustained high capex reduces near-term liquidity and raises execution risk if returns on that spend take longer to materialize.

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

Strong profitability and growth (Gross Margin 39.7%, Net Margin 7.3%, TTM revenue growth 15.57%) and a low-leverage balance sheet (Debt/Equity 0.026, Equity Ratio 67.5%, ROE 14.35%) are partially offset by weak cash generation, with negative free cash flow (-225.34M) and only moderate operating cash conversion (OCF/Net Income 0.50).

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	17.06B	14.54B	12.76B	11.24B	8.35B	5.76B
Gross Profit	6.08B	5.85B	2.91B	1.49B	649.80M	362.48M
EBITDA	1.84B	1.57B	1.25B	1.17B	375.58M	185.23M
Net Income	1.28B	1.08B	862.62M	814.63M	171.33M	64.37M
Balance Sheet
Total Assets	12.50B	11.14B	7.55B	6.75B	5.44B	4.69B
Cash, Cash Equivalents and Short-Term Investments	3.01B	2.04B	664.32M	686.72M	525.93M	678.84M
Total Debt	133.36M	198.79M	133.86M	177.28M	78.47M	61.51M
Total Liabilities	4.50B	3.63B	3.10B	2.76B	2.25B	1.69B
Stockholders Equity	8.00B	7.51B	4.45B	3.99B	3.18B	3.00B
Cash Flow
Free Cash Flow	5.79M	-225.34M	563.33M	176.38M	223.08M	336.30M
Operating Cash Flow	419.41M	535.59M	815.23M	312.86M	261.80M	388.32M
Investing Cash Flow	221.84M	-2.23B	-327.60M	-189.88M	90.81M	-349.87M
Financing Cash Flow	-60.53M	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 1851.95, above the 50-day MA of 1979.22, and above the 200-day MA of 2142.52, indicating a bearish trend. The MACD of -73.78 indicates Positive momentum. The RSI at 33.74 is Neutral, neither overbought nor oversold. The STOCH value of 25.81 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	63 Neutral	―	25.97	―	0.52%	27.89%	35.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MAHASTEEL	61 Neutral	₹15.50B	215.61	―	―	11.83%	124.74%
VISAKAIND	59 Neutral	₹4.93B	79.94	―	0.74%	6.79%	―
SALSTEEL	57 Neutral	₹4.17B	15.95	―	―	0.19%	-2962.74%
EVERESTIND	55 Neutral	₹5.50B	-5.44	―	0.50%	-3.11%	-331.77%
SHYAMCENT	45 Neutral	₹959.02M	-5.31	―	―	-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.