Interarch Building Solutions Limited

Industrials — Engineering & Construction · NSE

₹1,600.00+₹2.70 (+0.17%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Interarch Building Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Interarch Building Solutions Limited provides pre-engineered steel construction solutions in India. It offers pre-engineered steel building (PEB) systems; roofing and cladding system; non-industrial buildings; and suspended ceiling systems.

IndustryEngineering & Construction

SectorIndustrials

Employees2,045

Annual revenue₹1,876 Cr

How does it make money?

Turns over ₹1,876 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 2,045 employees supports ₹91.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin10.5%

Net margin7.2%

Revenue / employee₹91.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 15.3% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE20.8%

ROE15.3%

Peer median ROE14.1%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 18.1% and earnings to grow about 21.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.1%

Est. earnings growth+21.8%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +70% while net margin moved -3% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+70%

Margin effect-3%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 20.8% is above 20% — the business earns a high return on the capital it employs
✗ ROCE has fallen by 5.4 points — returns are eroding
✗ EBITDA margin of 10.5% is thin — little cushion if costs rise
✗ Net margin of 6.8% is slim
• Revenue has compounded at 19.2% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

74/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

20.1x

2Y Median

27.6x

28 monthly readings · mean 27.7x · range 19.6x–38.0x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 27% below its 2y median of 27.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 33% below the peer median of 30.1x.

vs. its own history

Cheap

27.6x median over 28 months · -27%

vs. sector peers

Cheap

30.1x median of 3 peers · -33%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

20.1x

P/B

3.05x

EV/EBITDA

13.6x

PEG

1.10

Dividend Yield

0.78%

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 20.8% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 20.1x the stock trades 27% below its own median of 27.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 20.4% to 15.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.2% to 20.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.99x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹138 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 33% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.99x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 20.4% to 15.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 19.2% CAGR
Latest reported year was 20.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹138 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹2,691 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.05x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹79.67

Profitable

Profitable on a per-share basis

ROE

15.3%

Strong

Strong capital efficiency

ROCE

20.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.99x

High

High leverage

Revenue Growth (YoY)

20.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-0.7%

Falling

Profits are shrinking

Dividend Yield

0.78%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹138 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1,600

P/E (Forward)

14.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.7%

Average

Average margins

Net Margin

6.8%

Average

Average bottom-line conversion

Current Ratio

1.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1673.6 / 1697.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,107 Cr	₹1,276 Cr	₹1,436 Cr	₹1,876 Cr	+19.2%
EBITDA	₹125 Cr	₹123 Cr	₹156 Cr	₹198 Cr	+16.5%
EBITDA Margin	11.3%	9.7%	10.9%	10.5%	—
PAT (Net Profit)	₹81 Cr	₹86 Cr	₹108 Cr	₹135 Cr	+18.2%
EPS	₹56.52	₹59.85	₹68.03	₹79.86	+12.2%
ROE	20.4%	19.4%	14.4%	15.3%	—
ROCE	26.2%	25.7%	18.9%	20.8%	—
Total Debt	₹18 Cr	₹13 Cr	₹20 Cr	₹18 Cr	-0.4%
Free Cash Flow	₹18 Cr	₹56 Cr	-₹23 Cr	-₹138 Cr	—

🟢 Revenue has grown at 19.2% a year over 3 years.

🟢 EBITDA has grown at 16.5% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 10.5% over 3 years.

🟢 PAT (Net Profit) has grown at 18.2% a year over 3 years.

🟢 EPS has grown at 12.2% a year over 3 years.

🔴 ROE has fallen from 20.4% to 15.3% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 26.2% to 20.8% over 3 years (-5.4 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.4% a year).

🔴 Free Cash Flow has turned negative, from ₹18 Cr to -₹138 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,301 Cr

Total Liabilities

₹420 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

-₹19 Cr

Capex

-₹119 Cr

Shareholding (proxy)

Institutional Holding

6.9%

Insider Holding

59.3%

Corporate Actions

Dividend Rate

₹12.5

Ex-Dividend Date

03 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,443

+52.7% vs CMP

Target Range

₹2,140 – ₹2,889

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive3 mixed2 general

Interarch Building Solutions (NSEI:INTERARCH) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Interarch Building Solutions Convenes Board Meeting for Q1 Results and Proposed Stock Split

Sahi, 06 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Interarch Building Solutions announces superannuation of finance president

scanx.trade, 14 Oct

Interarch Building Solutions Gets ₹59 Crore Order; Shares Fall 0.10%

HDFC Sky, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

INTERARCH Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Interarch Building Solutions Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate9.6/20

🟡Financial HealthAdequate10.6/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.4/15

🟢ValuationAttractive10.7/15

🟡RiskModerate4.8/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 14% a year19.2% CAGR
✓EBITDA margin holds above 9%10.5%
✗Free cash flow remains positive-₹138 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 18%20.8%