Interarch Building Solutions Ltd

Resignation: DGM - Safety

• Sumesh Sehgal resigns as DGM - Safety for personal reasons; effective 18 August 2026.

Order details

• Name of customer: Not disclosed due to confidentiality obligations.
• Nature and scope: Design, engineering, manufacturing, supply and erection of a pre-engineered steel building system.
• Contract value: Approximately Rs 128 Crores including taxes.
• Awarding entity: Domestic.
• Completion period: Approx. 10 months.
• Key terms: 20% advance; design, engineering, manufacturing and erection in scope.
• Promoter/group interest: No.
• Related party transaction: NA.

Financial Performance

• Q1 FY27 revenue: INR 460 crores; YoY growth 20.7%.
• Q1 FY27 EBITDA: INR 39 crores; margin 8.6%.
• Q1 FY27 PAT: INR 28 crores; flat YoY due to other incomes.
• Order book: INR 1,864 crores as of 31 Jul 2026; Vadodara order INR 165 crores.
• Target INR 600 crores quarterly for next 3–4 quarters.
• FY27 revenue guidance: INR 2,150–2,200 crores.
• FY28 EBITDA margin target: 9.5–10%.
• Q1 volume: 38,499 tonnes; quarterly capacity 50,000 tonnes; ~80% utilization.
• Exports in Q1: INR 10–12 crores; export mix target ~10% of turnover in 1–2 years.

Operating Update

• Order book as of 31 Jul 2026: INR 1,864 crores; major Vadodara order INR 165 crores.
• New-age industries account for ~35% of order book.
• Export focus: Canada/U.S. markets in pipeline with local partners.
• Andhra heavy-structure plant Phase 1: production by month-end.
• Gujarat plant Phase 2 by Oct; Phase 3 by Dec next year; total 75–80k tonnes.
• Open Web Joist JV with ER Steel: capacity 15,000 tonnes; first phase 4–5k tonnes; INR 70–75 crores; EBITDA ~20%.

Balance Sheet and Cash Flow

• Q1 operating cash flow: INR 26.83 crores.
• Last year had negative cash flow; now positive on improved collections and capex uptake.
• Debt: zero; no debt; QIP funds to be used for capex.

Projects and Capex

• AP heavy-structure Phases 2/3 capex: ~INR 150 crores.
• Gujarat Plant 2 capex: INR 50–60 crores.
• Open Web Joist export unit capex: INR 50–60 crores.
• Total incremental capex: ~INR 140–150 crores.
• Capex spent in last 2 years: INR 240 crores; IPO raised INR 180 crores.

Outlook and Guidance

• FY27 revenue guidance: INR 2,150–2,200 crores.
• FY28 target: INR 2,700 crores.
• EBITDA margin target: 9.5–10% in FY27–28.
• Export mix target: about 10% of turnover in 1–2 years.

Q&A Takeaways

• Q1 revenue run-rate discussion; seasonality; aim INR600 crores per quarter for 3–4 quarters.
• QIP details explained: INR250 crores; expedite expansion via AP heavy-structure and Gujarat plant.
• ER Steel JV opens export channel; full sales target $20–$23m; first phase INR 70–75 crores.
• Export mix progress: current exports INR 10–12 crores; target 10% turnover.
• Heavy-structure ramp-up; management cautious; aims for 80–90% utilization; 2–3 year capacity build.

Financial performance

• Revenue FY2025-26 ₹189,800.10 Lakhs.
• PAT ₹13,452.49 Lakhs.
• PAT margin 6.98%.

Capacity & major projects

• Installed capacity 2,01,000 MT p.a.
• Phase II Athivaram facility commissioned.

Exports & international growth

• Export orders ₹40.2 crore.

Capital allocation & dividends

• Final dividend ₹12.50 per share.
• IPO net proceeds ₹18,809.79 Lakhs.

Fundraising & equity actions

• QIP up to ₹250 crore approved Aug 2026.

Share capital actions

• Stock split: ₹10 to ₹2.

AGM details

• 43rd AGM on 10 Sep 2026 at 11:30 IST via VC/OAVM.
• Record date fixed at 03 Sep 2026.
• Remote e-voting period: 07–09 Sep 2026.
• Deemed venue: registered office.
• Dividend payment, if approved, by 09 Oct 2026.

Key resolutions and voting

• Ordinary: Adopt financial statements and reports.
• Ordinary: Declare final dividend per share.
• Ordinary: Re-appoint Gautam Suri as director liable to rotation.
• Special: Ratify remuneration of Cost Auditor for 2026-27.
• Special: Renew borrowing powers up to Rs 1,500 crore.
• Special: Create charges on assets up to Rs 1,500 crore.
• Special: Increase thresholds for loans/guarantees/investments to Rs 1,000 crore.
• Special: Raise funds via QIP up to Rs 250 crore.
• Special: Sub-division of equity shares (10 to 2; 1:5).
• Special: Alter Capital Clause of MOA.
• Special: Variation in terms of IPO proceeds; utilisation adjustments.

Voting results (where disclosed)

• Item 1 (IPO objects variation) passed; promoter 94.18% in favour; public 62.16% in favour.
• Item 2 (Viraj Nanda as Executive Director) passed; ~98.7% in favour.
• Item 3 (Manish Garg as Executive Director) passed; ~98.9% in favour.
• Items 4–11: results not disclosed in this chunk.

Dividend and IPO-related allocations

• Dividend proposed: Rs 12.50 per equity share; record date 03 Sep 2026.
• Dividend payable if approved, subject to tax, within regulatory timelines.
• Variation in IPO proceeds: Rs 105.33 million redirected to Gujarat facility; completion by Mar 31, 2027.

Directors and auditors

• Viraj Nanda elevated to Executive Director from 01 Apr 2025.
• Manish Garg appointed as Executive Director & CEO from 02 Feb 2026.
• Anoop Kumar Mittal appointed Independent Director from 07 Aug 2025.
• Aditya Vij appointed Independent Director from 07 Aug 2025.
• Gautam Suri to be re-appointed as Director liable to rotation.
• Statutory Auditor: re-appointed for five years (to 45th AGM).
• Internal Auditor: appointed for 2025-26; another appointment for 2026-27.
• Secretarial Auditor: M/s APR & Associates LLP appointed.
• Cost Auditor: M/s JSN & CO. Cost Accountants appointed; remuneration to be ratified.

Material related party transactions and other approvals

• RPTs reported as in the notes; all in ordinary course; no material RPTs identified.
• Audit Committee oversight of RPTs; omnibus approvals used where applicable.
• Other material approvals include ESOPs and related governance measures as disclosed in notes.

Dividend TDS guidance and timetable

• Board recommended final dividend of ₹12.50 per share for FY2025-26.
• AGM on 10 Sep 2026 to approve; payout by 9 Oct 2026.
• Resident TDS at 10% with PAN; 20% without PAN; exemption up to ₹10,000.
• Non-resident withholding at 20% plus surcharge/cess; DTAA benefits require documents.
• Deadline for Form 121 and related proofs: 3 September 2026.
• Resident individuals: no tax if annual dividend ≤ ₹10,000 or Form 121 provided.
• Lower withholding permitted under Section 393/395 certificates on the specified TAN.
• Link PAN with Aadhaar to avoid higher 20% withholding.
• Bank details in demat/folio must be updated for electronic dividend credit.

Issue Overview

• IPO of Interarch Building Solutions; equity shares; total fresh issue Rs 2,000 million; net proceeds Rs 1,880.98 million.
• Main use objectives include capex, IT assets, working capital, GCP, and land payment.

Utilisation of Proceeds

• Utilisation aligned with disclosures; MA notes no deviation; variations approved by shareholders.
• Object 1: 183.45 utilised of 220.93; 37.48 unutilised; FY2027 extension.
• Object 2: 229.60 utilised of 284.76; 55.16 unutilised; FY2027 extension.
• Object 3 IT assets: 56.73 utilised of 113.92; 57.19 unutilised; delays noted.
• Object 4 Working capital: no utilization this quarter; funds remain unutilised.
• Object 5 GCP: 0 utilized this quarter; total Rs 486.97 million allocated.
• Object 6 AP land payment: no utilization this quarter; Rs 94.58 million allocated.
• Unutilised proceeds parked in fixed deposits and bank accounts totaling Rs 150.38 million; balances Rs 0.58 million.

Governance and Compliance

• Shareholder approvals obtained for object variations via special resolutions.
• No material adverse events or regulatory actions reported affecting viability.
• All required approvals documented; no pending approvals indicated.

GCP

• GCP allocation: Rs 486.97 million; utilized per allocations; board/shareholder approvals for allocation obtained.